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NAFCU, CU trades highlight benefits of financial literacy
NAFCU, CUNA, and the Defense Credit Union Council (DCUC) touted the benefits of financial literacy for the nation’s military members in response to an amendment proposed by Sen. Patty Murray, D-Wash., to the fiscal year 2024 National Defense Authorization Act (NDAA).
“Credit unions fulfill a vital role in the military community,” the trades wrote. “In fact, their focus on the servicemember is evident throughout the military lifecycle. Whether it involves opening a secure checking account, obtaining low-interest credit, or learning how to properly save for retirement— defense credit unions proudly serve their communities while protecting against financial predators outside the gate.”
The letter included survey results that showed “military households that are credit union members view their credit unions much more favorably than nonmembers view their banks [and] other service providers,” including:
- military households that are credit union members are nearly two times more likely than nonmembers to say they have received personalized financial education/counseling, and they have acted on the advice they received;
- military households that do not use credit unions are 1.6 times more likely than military household credit union members to say that they have not established a financial buffer to meet unexpected expenses;
- military credit union member households are 1.5 times more likely than nonmembers to say they are “very positive” their financial institution has improved their financial well-being; and
- military households that have credit union membership are much more likely to have an ownership interest in a business, reinforcing the need for legislation such as the Veterans Member Business Loan Act, which has been introduced in both the Senate and House, to expand credit unions’ ability to meet veterans’ small business lending needs.
While the amendment was ultimately not added to Senate-passed version of the FY24 NDAA, the groups indicated they would continue to urge lawmakers to support its provisions in future efforts.