If your credit union is struggling to connect with today’s younger generation, then you’re not alone. Only 4 percent of Gen Z are credit union members, according to a 2024 survey presented at the 2024 World Credit Union Conference. The study also found only 5 percent of millennials belong to credit unions. Over the past two decades, the median age of a credit union member has risen from 42 to 52, according to a Filene Research Institute study.

Faced with this challenge, many credit unions and traditional banks have teamed up with fintech firms to help them engage with young people, while also aiding their financial literacy efforts. Although fintechs can help improve their young adult offerings and customer service experience, the survey results suggest that they’re only a partial solution.

Clearly, credit unions have not had success finding effective ways to reach and impact the under-35 demographic.  But it’s not because that group doesn’t care about money. As a speaker, author and founder of Young Money University, I regularly give financial presentations to audiences across America. The young people I meet with are extremely interested in how to earn, save, spend and invest money better or “differently.”

Over the past 20+ years, I’ve partnered with credit unions, colleges and corporate sponsors to help them move beyond “old school” financial education and adopt bold new strategies to reach the young adult market. I created a radical five-step platform called “Do Money Differently,” designed to help young adults ages 18-34 learn how to reduce money stress, increase financial confidence and begin to create wealth from investing.

The biggest lesson I’ve learned from decades as a financial speaker is that young people have the same hopes, dreams and fears no matter who they are or where they live. From Boise, Idaho to Huntsville, Alabama to Cincinnati, Ohio, event attendees come eagerly seeking expert guidance on how to pursue their life goals. Too often, they grew up not learning basic budgeting or money management skills, either at home or at school.

Here are some of the questions I often get from audiences:

“How can I start a side hustle to earn extra money?”
“How do I deal with unexpected expenses?”
“How are credit unions different from banks?”
“How much money do I need to start investing?”

“How do I save for big purchases like a car and a house?”

“What do the wealthy know that I don’t yet?”

As a credit union official, your mission is to connect your local community with the financial products and educational resources that can turn their dreams into reality. There are two keys to achieving that mission: 1) Finding the right and most relevant marketing channels for your business and services; 2) Speaking to potential members with an authentic voice that shows you truly care about their financial success.

Unfortunately, traditional financial education programs and content tend to be dull and uninspiring.  The reason why Do Money Differently (DMD) resonates so strongly with younger audiences is because it taps directly into their core desires and needs without using any of the confusing jargon typically associated with personal finance. The DMD content is easily available through multiple platforms such as podcasts, videos, e-newsletters, social media and live presentations, which also makes it more appealing to that population.

DMD features five key principles:

1 - How to Dream Differently

• Young people are generally not aware that each person has a “money DNA” that’s developed through their childhood experiences. This DNA often creates certain doubts and limiting beliefs about themselves and stokes fear regarding their ability to manage money.
• Credit unions can use Do Money Differently to show young adults how to overcome any limiting belief so they can feel free to thrive financially.

2 - How to Save Money Differently

• The system encourages users to ditch their standard single “savings account” and replace it with multiple named and goal-specific savings accounts that align with their current needs, future goals and what they value within a range of five years or less.
• Participants learn how to quickly and simply automate monthly transfers from their checking accounts to these separate named savings accounts, which will give them a stronger sense of financial control.

3 - How to Spend Money Differently

• Young adults will discover how to spend money intentionally by creating a monthly spending plan (i.e., budget) that aligns with their personal needs and values.

4 - How to Invest Money Differently

• This lesson explains how and why young people should open a minimum of three investment accounts over time, each with a specific financial goal while taking advantage of compounding.
• They can also learn the power that asymmetric investing has to accelerate wealth growth while managing risk.

5 - How to Give Money Differently

• Young adults will be inspired to live a life with more meaning and purpose by helping others who are in real financial need.
• Recognizing that generous living always brings the highest level of true joy!

Several credit unions are already using Do Money Differently to reach young adults and make a positive impact on their financial lives. But our country still faces a daunting challenge. Your credit union can join the growing group of financial institutions that have discovered powerful new strategies to reach younger members and help make their financial dreams come true. 

Approximately 1 in 3 U.S. adults ages 18 to 34 live in their parents’ home, according to U.S. Census Bureau data. In 2024, a Bank of America survey found that more than half of Gen Z adults say that they don’t make enough money to live the life they want due to the high cost of living. More than a third of Americans say that having more young adults live with their parents is bad for society.

There is little time to waste. The credit union industry must act now if we want to collectively reverse this national trend. By working together, we can empower young people to achieve financial independence and keep them as sincere members of credit unions nationwide. 

About Author:

Todd Romer is the founder of Young Money University (www.youngmoneyuniversity.com) and creator of Do Money Differently, a radical guide for achieving a life that fits your dreams. He is the author of "Young Money: A Powerful 5 Step Money Plan to Do Money Differently" and publisher of the “Do Money Differently” e-newsletter on Substack. Todd can be contacted at tromer@youngmoneyuniversity.com or 407-925-5600.