RALEIGH, N.C.–One student who described her financial education prior to college admits she has only a “fuzzy” on what credit unions are, yet after the concept is explained finds CUs an attractive alternative, especially if certain benefits are available.
The student’s perspective is part of a series of articles focused on what college students really think and know about credit unions and finance? CUToday.info has partnered with Zogo, a fintech founded by undergraduate students at Duke University that is focused on innovative ways to use mobile first to improve financial literacy, to feature real interviews with college students.
Some of the answers as revealed in a new series of interviews, which were conducted by Zogohttp://www.zogofinance.com, will be eye-opening to many in credit unions, and will likely send decision-makers back to the digital drawing board if they want to capture the next generation of members.
The introduction to the series, including the first student interview, can be found here. Other interviews can be found here, here, here and here.
Name: Molly Horak
Age: 21
Hometown: Asheville, N.C.
Major: Journalism and Political Science
Grade: Senior at University of North Carolina
Fun Fact:Was a clown when she was a kid
Zogo: How did you learn about personal finance in high school?
Horak: I think we had a two-week section in my civics class on personal finance.
Zogo: What do you remember from that experience?
Horak: They told us like, “This is what a bank account is, this is what a credit card is, this is what a check looks like.” It was very, very basic. And then right before I went to college my mom sat me down and was like, OK, here’s how you actually do it. She showed me how to pay a credit card bill.
Zogo: How can a person increase their credit score?
Horak: Well, you can pay your bills on time. I think people have said that you can make a really big purchase and then slowly pay it off? I’m not sure how accurate that is.
Molly Horak
Zogo: What is an insurance deductible?
Horak: You have to pay that amount, and then the insurance company pays the rest.
Zogo: Can you describe banks to me?
Horak: It’s where you put your money. It’s safe and secure, and you might make extra interest money.
Zogo: Who do you bank with?
Horak: Bank of America and Charles Schwab.
Zogo: What is your relationship with your banks?
Horak: I mainly use Bank of America. I got Charles Schwab when I studied abroad because they don’t have international fees.
Zogo: Do you have a favorable or unfavorable opinion of them?
Horak: They’re fine. I’ve never had issues with my accounts or anything like that. They’re fine.
Zogo: Do you feel loyal to your bank?
Horak: I wouldn’t say I am, necessarily. But I also don’t think I’ll be changing any time soon because I don’t have a reason to.
Zogo: Can you describe credit unions to me?
Horak: OK, these I’m a little bit fuzzier on. Basically it’s like a bank for people in a certain industry. My mom’s a teacher so she sometimes uses State Employees Credit Union.
Zogo: Credit unions are like banks, but they’re non-profit. When you open an account at a credit union, you become a member and own part of the credit union. So while traditional banks are run by shareholders whose goal is to maximize profits, credit unions return all profits to their members in the form of reduced fees, higher savings rates and lower loan rates.
Horak: I like that.
Zogo: After hearing this description of credit unions, how has your attitude towards credit unions changed?
Horak: They seem like a really good solution. I like that fact that that it’s a non-profit and that they reinvest in the people. It makes me think highly of them.
Zogo: What are some things that a financial institution can do to make you feel loyal towards them?
Horak: I would say answering all questions in a timely manner and being responsive when I need information. Maybe do a little cash-back bonuses or something like that just to make me feel like they actually pay attention to what I’m doing. Or personalized emails! Cute little things like that.
