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How would you pay for an unexpected $400 emergency expense?

I implore you to take a moment and think honestly about this question. A few options may come to mind, You could…

• Pay in cash
• Put it on a credit card and pay it off over time
• Borrow from a friend or family member
• Sell something
• Use money from a bank loan or line of credit
• Use a payday loan, deposit advance, or overdraft

Are you satisfied with the option that works best for you? If not, there’s no reason to feel embarrassed. Many Americans would also find themselves choosing an option they consider less than ideal.

Respondents of the 2016 Survey of Household Economics and Decision-making (SHED) were also asked how they would cover a $400 emergency expense, and 44 percent of respondents indicated that they would either not be able to pay the expense or must sell something to do so.

Perhaps these respondents could have prepared for this ahead of time by saving a portion of their paycheck into an emergency fund so that they were ready for this $400 expense.

Perhaps financial decisions like this seem like a no-brainer… but perhaps not? According to the National Financial Educators Council, the average test result for all age groups taking the National Financial Capability Test is a 63.17%. That’s a D—not passing.

At FCCU, we’re not here to assign blame. There are a variety of factors that can be attributed to such a low financial literacy rate in the country.

However, the goal of this blog post isn’t to explore these factors. Instead, the goal is to explore what’s being done about financial literacy and how it can benefit you.

Financial Literacy in Schools

When I was in high school, students were not required to take a personal finance class. Working at a credit union is the only reason I successfully transitioned from high school to adult. Luckily, times have changed.

In 2017, Gov. Scott Walker signed into law bipartisan legislation that requires public school boards in Wisconsin to adopt academic standards for financial literacy and incorporate personal finance in K-12 curriculum.

Assisting with school financial literacy efforts has always been a core element of the credit union mission. In fact, 69% of credit unions reported working directly with a school or school district in 2017 (WCUL).

My coworkers and I have had the pleasure of presenting in local elementary, middle, and high school classes on topics such as:

• The difference between savings and checking accounts
• How to shop for financial services
• What makes up a credit score (and how to improve a ruined credit score)
• How to choose and responsibly use a credit card
• What to include in a monthly budget
• Why to save for retirement now (hint: compounding interest)
• And more!

FCCU also offers a FREE online financial literacy program, called Banzai, to educators and students. Banzai simulates real-life adult financial dilemmas and teaches students how to successfully navigate them. If you are a K-12 teacher or know a classroom that would benefit from Banzai, feel free to contact us!

But what if you’re no longer a student? Many credit unions offer free online and in-person resources, many of which can be found on their individual websites. Look for keywords like financial literacy, money smarts, or financial counseling.

Financial Literacy Seminars

Many credit unions offer free seminars on a variety of financial topics, such as home buying, budgeting, retirement, social security, Medicare, and more. These events are often scheduled on a night or weekend, lasting about an hour.

If you’re lucky, there may even be free food and/or drinks!

The best place to learn about financial literacy seminars is on a credit union’s website or Facebook page.

If a seminar doesn’t fit well into your schedule or you’d prefer a more one-on-one approach, check to see if your credit union offers free financial counseling.

Financial Counselors

Many credit unions offer free financial counseling services, offering help on the following financial topics:

• Guidance through a financial crisis
• Loan delinquency reduction
• Credit score improvement
• Budgeting
• And more!

A financial counselor is a great first-point-of-contact for any financial question because if they don’t know the answer, they can point you to someone who will.

Ensure that your financial counselor is certified—because you don’t want any “Joe Schmo” giving you financial advice. In the credit union world, employees can be certified as a Certified Credit Union Financial Counselor (CCUFC) from the CUNA Financial Counseling Certification Program (FICEP).

In just two years, more than 120 credit union employees voluntarily pursued financial counseling certification (WCUL), including four of our team members: Yolanda, Staci, Taunya, and Anna! If you’re local to FCCU, feel free to give us a call or fill out this form and schedule an appointment.

Credit unions strive to improve the financial literacy of their communities by providing free services like in-school presentations, seminars, and financial counseling (and SO much more). If you’re in a financial pickle or want to be proactive with your finances, check out your local credit union’s financial literacy resources.