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How to boost your financial fitness

By Jim Lemieux, Sebasticook Valley Federal Credit Union

Thursday, Oct. 16, marks International Credit Union Day, celebrating the impact of credit unions in states like Maine.

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Jim Lemieux

While large banks tend to dominate the headlines, our state is a uniquely neighborly place where people want to support the small, local financial services industry.

In fact, most Mainers are members of credit unions, and there are dozens of credit unions here. Maine is a national leader in terms of credit union membership because this is “small town America” at its finest.

Just like how bars, cafes, restaurants and other small businesses make people feel connected to Main Street, it is our responsibility to connect communities through money management.

On that front, there are opportunities for leaders in the financial services industry to provide further support. Many Mainers are struggling today, weighed down by persistent inflation and other economic concerns.

About two-thirds of Mainers cite cost of living as a top concern — more than any issue by a wide margin. This has been the case for many years now, with families across the state struggling to find their financial footing.

'Doing more'

So what does “doing more” mean? For credit unions, it is a recognition that doing well isn’t enough; leaders in our industry need to do good, too.

There are external economic factors that we can’t control, but we also have to recognize areas where we can provide support. One gap is youth financial literacy. Given today’s economic anxieties, it is clear that today’s students deserve help preparing — well ahead of being on their own — to save, succeed, and get ahead in the economy.

It is imperative to set up our next generation for success, and there is certainly ample room for improvement. Most young Americans aren’t well-versed on money management. More than half of high school students are worried about their finances, claiming they feel unprepared to finance their futures.

Need for personal finance skills

What will their finances look like decades from now? Some 80% of Americans believe they would have been better off if they had learned more about personal finance in high school. It definitely can’t hurt.

Credit unions and other financial institutions need to support parents at home and teachers in the classroom. We are part of something bigger, and that means providing a support system to those who are already trying their best to educate our youth. That’s why Sebasticook Valley Federal Credit Union regularly hosts Maine Credit Unions’ Financial Fitness Fairs at local high schools, helping students develop essential money management skills.

We have to start early. Financial Fitness Fairs welcome high school students and even eighth graders, and these regular offerings have supported nearly 80,000 Maine students to encourage smart financial choices.

As we all know, budgeting is hard, but young people need to be taught the basics. They also have to recognize the importance of budgeting in the first place, especially as a deterrent against the high cost of living. Financial Fitness Fairs are structured as an engaging budget simulation, whereby students receive a hypothetical career and monthly income and then visit booths representing common expenses — from housing to food and entertainment. By filling out a monthly budget form, students make sure that their expenses do not exceed their income.

Imagine the benefits of learning basic budgeting skills 10 or 20 years down the line. Then, in adulthood, credit unions can personally work with clients to build on that foundational awareness and help people achieve their financial goals.

Imagine if Financial Fitness Fairs were provided to even more students and in even more states across America. And this is just one example, along with Maine Credit Unions’ End Hunger Campaign to combat hunger in our communities. They are both testaments to financial institutions being something more than just bottom-line-oriented.

This International Credit Union Day, let’s do more than celebrate credit unions. Let’s think even bigger, and celebrate the communities we connect. Maine’s economy depends on it.

About the author

Jim Lemieux is president and CEO of Sebasticook Valley Federal Credit Union.

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