CUAO Youth Summit 2009

Teach Kids theValue of Money

John LanzaChief Mammal

SnigglezooEntertainment

We teach them…

The ABCs

To Eat Right

Reading, ‘Riting, ‘Rhythmatic…

What about the fourth “R”?

“Real World”

-Robert DuvallNational Council

on Economic Education

The Result

We Can’t Afford Not To

Catherine Pulley, American Bankers Association

“Financial literacy is a basic survival skill that is as important as teaching kids to look both ways before crossing the street.”

We Must Teach Our Kids

We Don’t Have A Choice

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What are twoof today’s most

precious commodities?

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The Time-TouchBalance

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Robert ReiherConsumer Psychologist

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Do you have enough TIME in the day for work

& family?

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3 out of 4 people feel that they just don’t have

enough TIME in a day.

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15

TOUCH

Most people want to “CONNECT” more with their

kids, their spouseand with themselves

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17

TOUCH

“Nobody on their deathbed ever said ‘I wish I’d spent more time

at the office’.”

-Wise Person

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Time-Touch BALANCE

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The Time-Touch

Dilemma

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CHANGING CIRCLESOF INFLUENCE

Outside Circles Of Influence vs.

Inside Circles Of Influence

business

media

entertainment government

education

technology

politics

OUTSIDE Circles of Influence

economy

TIME-TOUCH STRESS

business

media

entertainment government

education

technology

politics

economy

TIME-TOUCH STRESS

OUTSIDE Circles of Influence

KIDS CAN’TPROCESS MEDIA

BLIND SPOTS

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parents

trusted caregivers

loving family members

religious, spiritual & educational organizations

trusted health

professionals

TIME-TOUCH BALANCE

INSIDE Circles of Influence

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parents

trusted caregivers

loving family members

religious, spiritual & educational organizations

trusted health

professionals

TIME-TOUCH BALANCE

INSIDE Circles of Influence

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INSIDE Circles=

BEST INTERESTS

27

TIME SCARCITY

CREATES

TOUCH SCARCITY

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INVISIBLE TRADEOFFS

Values

Communication

Behavior

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MISMATCH = DANGER

OUTER CIRCLES

OF INFLUENCE

vs.

THE HUMAN BRAIN

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RATIONAL

Emotional BrainEmotional Brain

ReflexBrain ReflexBrain

Upshifting

Downshifting

Thinking BrainThinking Brain

3BRAINS

BEHAVIOR

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END RESULT

Consuming / Materialistic Kids

Importance of Touch:Focus on Family

• 20-year study

• 450 families

• Farm Belt recession in the 1980s

• School-age children

• Psychological impact on kids - significant and enduring.

• Financial woes fuel: anxiety, depression, behavior problems

Importance of Touch:Focus on Family

Successful families

Focused on Family

“Kids didn't seem to mind

that they lacked spending money."

Financial Literacy

The “Perfect Storm”The “Perfect Storm”

Retirement Responsibility

Social Security

Retirement - 401Ks

No more employer-provided

defined benefit plans

Easily accessible consumer credit

Movement towards a cashless society

Increasingly sophisticated marketing

Retirement Responsibility

Social Security

Retirement - 401Ks

No more employer-provided

defined benefit plans

Easily accessible consumer credit

Movement towards a cashless society

Increasingly sophisticated marketing

Source: Learning Your Monetary ABCs, Martha H. McCormick and David Godsted (2006)

Lack of EducationLack of Education““While there are many causes to the While there are many causes to the

economic problems facing the country, economic problems facing the country, it is undeniable that a lack of financial it is undeniable that a lack of financial

literacy is a contributing factor.”literacy is a contributing factor.”

““While there are many causes to the While there are many causes to the economic problems facing the country, economic problems facing the country,

it is undeniable that a lack of financial it is undeniable that a lack of financial literacy is a contributing factor.”literacy is a contributing factor.”

-Charles Schwab-Charles SchwabChairmanChairman

President’s Financial Literacy Task Force President’s Financial Literacy Task Force

-Charles Schwab-Charles SchwabChairmanChairman

President’s Financial Literacy Task Force President’s Financial Literacy Task Force

Children are already a major target audience for advertisers. American companies currently spend _______ a year on marketing and advertising to children under the age of 12—twice the amount they spent just 10 years ago.

$15 billion

Source: Children Now Study on Advertising (2005)

Each year, the average child sees about _________ ads on television alone.

40,000

Source: Children Now Study on Advertising (2005)

Children under the age of eight do not recognize the persuasive intent of ads and tend to accept them as accurate and unbiased. In fact, 30-second commercials have been found to influence brand preferences in children as young as ______ years old.

Two Years Old!

Source: Children Now Study on Advertising (2005)

Two Young??Two Young??

We MustEstablishMoney SmartsYounger!

We MustEstablishMoney SmartsYounger!

Early Chilhood Financial LiteracyEarly Chilhood Financial Literacy

“…it is widely recognized that literacy, as the foundation for virtually all other subject areas, needs to be taught from the very

earliest ages; this focus on early childhood literacy is known as emergent literacy.”

“…it is widely recognized that literacy, as the foundation for virtually all other subject areas, needs to be taught from the very

earliest ages; this focus on early childhood literacy is known as emergent literacy.”

The Result

What about the

Schools?

Reality Check

Jump$tart 2007 Survey, High School Seniors

Mean Score = 52.4%Proportion failing exam = 62%

Reality Check

In most cases, economics and personal financial literacy programs are elective classes so “only 12% of Americans graduate from high school having learned anything about money at all.”

Source: Learning Your Monetary ABCs, Martha H. McCormick and David Godsted (2006)

It’s up to Parents

What percent of parents believe that schools provide classes on money management and budgeting to their students?

80%

Source: Learning Your Monetary ABCs, Martha H. McCormick and David Godsted (2006)

Are Parents up to the task?

71% of teens report learning about money management from parents yet…

Are Parents up to the task?

only 26% of parents with children 5 or older feel well prepared to teach their kids about basic personal finances.

A financial literacy “buck” is being passed from parents to teachers and back to parents again. Parents assume that schools are teaching financial literacy, but schools, by and large, are not teaching it. Teachers, like parents, don’t feel comfortable teaching it.

-John Clow, Jump$tart

Source: Learning Your Monetary ABCs, Martha H. McCormick and David Godsted (2006)

Parentsneed help!

Strong Forces

Working Against

Financial Literacy

58

M.A.R.V.E.L. TM

Time-Touch Solution

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M.A.R.V.E.L.™

To Evoke Admiration

And Wonder

6060

Model – Mirror Positive Values

Attune – Be “tuned in” & present

Reflection – Develop higher thinking skills

Values – Establish key priorities in life

Engage – Create involvement

Limit – Build strong foundation and structure

The M.A.R.V.E.L. MapA Blueprint For Time-Touch Solutions

A Better Brand

Three-pronged approach

Share

Save

Spend Smart

Engage Enrich Entertain

Bonus Benefit!

Parents Get It!

6464

Model – Share & Save & Spend Smart

Attune – Simple Message / Dialogue

Reflection – Teaching Guide

Values – Needs vs. Wants +

Engage – Fun + Action Steps

Limit – Making Choices

The M.A.R.V.E.L. MapA Blueprint For Time-Touch Solutions

REMEMBERTHOSEKIDS?

Needs vs. Wants

Making Choices

Sharing, Saving, Spending Smart

Allowance

Money Spent = Money Gone

Saving is Good

Delayed Gratification

What Can Kids Learn?

Delayed Gratification

Marshmallow Experiment

• Walter Mischel

• 4-year-olds

• Receive marshmallow

• Wait 20 minutes & get a SECOND

Marshmallow Experiment

• Followed into adolescence

• Those who waited for SECOND:

• More dependable• Better adjusted• 210 points higher

on SATs

SavingMoney IS

DelayedGratification

financial ILLITERACYOUTSIDE circles

time-touch BALANCEINSIDE circles

BEST INTERESTS EARLY childhood F.L.

M.A.R.V.E.L.

BUILDING A KIDS CLUBCU’s PerfectlyPositioned

BUILDING A KIDS CLUBCU’s PerfectlyPositioned

CU PHILOSOPHYTime – TouchBalance

CU PHILOSOPHYTime – TouchBalance

Financial EducationSocial Responsibility

Concern for the CommunityMember Service

Building a Kids Club

StartWithThe

FOUNDATION

StartWithThe

FOUNDATION

The

YOUNGEST members!

The

YOUNGEST members!

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TIME & TOUCHTIME & TOUCH

LOYALTY

You can’t just

THROW out a club and expect it to stick.

Making Noise

Get into Schools

EVENTS

Media coverageInternet

TelevisionPrint Media

Be CONSISTENT and PRESENT

with your BRAND!

Newsletter is

THE CORE

CHALLENGE

REFER-A-FRIEND

The Incentive LoopThe Incentive Loop

newsletternewsletter punch cardpunch card

deposit incentivedeposit incentive

branchbranch

Encourage,Incentivize Key Traits

DelayedGratification

Using The WEB

PlayJoe’s CU Game

PlayNeeds vs. WantsGame

More IdeasGame nights Incentive Contests Low-cost activities Branches

Game nights Incentive Contests Low-cost activities Branches

Video & Television

In Branch Marketing

You can’t just be good.

Be Different!

Making the case:

Getting to Yes

More than

22% Growthin 2008

More than

22% Growthin 2008

Increase core deposits

New Club Starts

Deposits Rise.

Parent balances up!

New Club Starts

Deposits Rise.

Decrease member age

47 to 44!47 to 44!

LOYALTY

Nurture them and they’ll become profitable

Future borrowers

First car

First credit card

First loan

104104

Model – Mirror Positive Values

Attune – Be “tuned in” & present

Reflection – Develop higher thinking skills

Values – Establish key priorities in life

Engage – Create involvement

Limit – Build strong foundation and structure

The M.A.R.V.E.L. MapA Blueprint For Time-Touch Solutions

Reach

Gen X

…and Gen

Focus GroupsFocus Groups

Did you like it?Would you recommend it to a friend?What would you change?

Did you like it?Would you recommend it to a friend?What would you change?

Simplify to get resultsSimplify to get resultsSimplify to get resultsSimplify to get results

Downturn Notthe time to cut backDownturn Notthe time to cut back

Be Different!

THRIFT SHIFTTHRIFT SHIFT

What do you think?

Thank You.

www.themoneymammals.comwww.themoneymammals.com

BlogBlog

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The background images for the”Two Young??” and “Emergent Literacy” slides are licensed courtesy of Eileen Lanza Photography.

The Money Mammals logo and characters are used courtesy Snigglezoo Entertainment. ©2008. All Rights Reserved.

The image of the South Branch of Rogue Federal Credit Union is used with permission from Rogue Federal Credit Union.