February 06, 2019

NAFCU touts CUs' financial literacy, retirement programs to Senate panel

money"The first step to promoting retirement savings is establishing financial literacy. Financially literate individuals are more likely to spend prudently and put money in savings, retirement funds, and other wealth building accounts," wrote NAFCU's Brad Thaler ahead of a Senate Special Committee on Aging hearing today focused on financial security in retirement.

"Likewise, the same individuals are less likely to rack up large, burdensome – and sometimes unaffordable – debt, and are less likely to be victims of predatory practices," he added.

Thaler, NAFCU's vice president of legislative affairs, stressed that "providing financial literacy and education is paramount to improving credit union members' financial lives." He went on to share some of the programs offered, which are highlighted in a NAFCU Economic & CU Monitor survey.

Almost all respondents to the Monitor survey said their credit union offers financial literacy programs, with two-thirds offering programs on retirement savings.

In addition, the Monitor survey found that credit unions are partnering with third-party vendors to help members with budgeting, personal financial management and credit monitoring. Many credit unions also offer incentives to help members save.

Thaler also highlighted NAFCU's partnerships with the Consumer Federation of America, specifically with their America Saves and Military Saves programs. The association also provides feedback on financial education resources offered by federal regulators.

NAFCU will continue to showcase the close relationship credit unions, as community-based financial institutions, have with their members and how they are uniquely situated to meet their members' financial needs.