Creating Family Financial Goals

Steps to creating powerful family momentum toward a bright future

Creating Family Financial Goals

Steps to creating powerful family momentum toward a bright future

www.FinancialEduNation.org

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www.FinancialEducatorsCouncil.org

Contact: Traci Allan

Traci@FinancialEducatorsCouncil.org

714.960.4665 ext 7000

Overview:

A financial literacy initiative which employs a

campaign approach increases the reach and

frequency of the financial literacy message. The

campaign approach engages target communities in

the financial education process to present a far-

reaching, appealing, sustainable program.

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Introduction

When citizens possess sound, practical financial knowledge applicable to their daily lives, the benefits

both to our communities and to our country are profound. The credit union industry can contribute

greatly to increasing financial literacy among the communities they serve. But credit unions should be

selective when choosing a financial educational package. A financial literacy initiative which employs a

campaign approach increases the reach and frequency of the financial literacy message. The campaign

tactic also builds community support while empowering participants with practical financial tools.

Many financial literacy programs are one-dimensional, fail to align with larger objectives, and lack an

overall campaign strategy. Such education typically presents little usable information; many existing

programs are boring—alienating participants from the learning process—and suffer from low

attendance. In contrast, campaign-focused financial literacy initiatives engender strong community

support, reach a wide audience, and employ fun, motivating instructional techniques to keep

participants interested and engaged.

The campaign approach engages target communities in the financial education process to present a far-

reaching, appealing, sustainable program. Such initiatives are designed to be fun, engaging, and

motivating—inspiring participants of all ages to take positive action. In turn, credit unions in

participating communities benefit as well. Financial institutions will experience improved retention

rates and measurable changes in the money skills of their members. And the financial literacy campaign

helps credit unions meet their organizational objectives.

Taking a campaign approach maximizes program outreach and impact. Key steps toward developing a

successful financial literacy initiative are described below.

Step 1: Planning

Organizational objectives. To ensure that a financial literacy initiative becomes sustainable, alignment

with your credit union’s larger objectives is critical. Financial literacy provides an excellent vehicle to

generate new accounts, introduce new services, build community goodwill, obtain media attention,

build relationships with other organizations, and enhance the customer experience. And all these

benefits occur within the context of educating your members in key skills that will enhance their lives.

Actively supporting the organization’s larger objectives benefits the company as well as the financial

literacy program.

Financial literacy initiative objectives. What end goals do you envision for your financial literacy

program? Financial literacy campaigns provide credit unions an avenue toward accomplishing a variety

of goals, and your objectives should be well-defined during the planning phase to ensure their

achievement.

Essential questions to consider early in the process include:

1) What specific personal finance topics do you wish to share with your membership?

2) What results or outcomes do you seek, and

how will you measure success? Setting

realistic, measurable goals is important. For

instance, you host a 60-minute budgeting

class. Setting a goal that this class will change

long-term participant behavior is not

reasonable. Examples of achievable objectives

might be: a) motivate participants to attend

another class; or b) encourage attendees to

write down their annual budgets.

3) What is your target demographic? Develop a

clear demographic profile describing your

desired attendees, with special attention to

socioeconomic and psychographic factors.

4) What are the learning preferences of your target demographic? We have observed low

attendance at an organization-sponsored live program for middle income earners on the topic of

“financial recovery”; but webinars on the same topic and serving the same target group attracted

much higher attendance. In response to surveys and interviews, participants indicated they were

embarrassed to attend live events, yet felt comfortable attending a webinar.

5) What are your sustainability goals? The most effective personal finance programs deliver their

message in perpetuity. One of the best ways to ensure sustainability is by delivering a clear

return on investment (ROI). ROI can be measured in several ways*:

a) Client acquisition. Calculate the acquisition costs related to your developing program. If

obtaining a new checking and savings client costs $150 using traditional marketing, a

financial literacy program that delivers new clients at a lower cost has an excellent chance

to achieve sustainability.

b) Cross-selling. When done properly, financial literacy campaigns help credit unions

introduce additional products and services to existing clients in a friendly manner that

avoids sounding like a sales pitch. For example, if your organization releases a new car loan

program, a financial literacy event that teaches participants the car-buying process would

introduce the new service to potential end-users in an educational fashion.

*Careful tracking must be undertaken to accurately measure ROI generated from cross-

selling and client acquisition.

c) Usage. Personal financial literacy education helps people become more comfortable

making financial decisions. Your participants’ newly-found confidence may lead them to

use financial products and services at increased levels.

d) Media. Your financial literacy initiative also can

garner media coverage. Media coverage can be

calculated at set intervals during the initiative;

simply review the media rate cards if you were to

purchase ads of similar size. For instance, if you

received 1/16-page coverage in a local newspaper,

calculate the value of that coverage based on the

newspaper’s advertising sales rate.

e) Goodwill, awareness, and referrals. Although

community goodwill may be challenging to

quantify, it forms a clear byproduct of delivering

high-quality financial education to community

members. And raised awareness leads to quality

referrals, whose impact is easier to measure.

Test the concept. Be sure to test your program concept before spending time and energy in its

planning. We recommend conducting solid research as the starting point. While much online

information is available, often your best resources may be found internally. Talk with co-workers who

interact with the target audience; obtain their ideas about the participants and how best to reach them.

Once your baseline research is complete, reach out to potential participants via surveys and/or informal

interviews. Outreach to gather audience input not only allows you to customize the program to best

meet the needs of the attendees, but also serves as an initial promotion tool to raise awareness about

your initiative.

When planning a financial literacy initiative, obtaining information about participant interests directly

from the source can be invaluable. Here are some sample questions to form the basis of a participant

survey:

What financial topics would you be most interested to learn?

The Money XLive Celebrity Financial Education

Event garnered major media attention and served

over 1,100 youth at The Grove of Anaheim.

How would you like the information to be delivered?

What days of the week and times of day do you prefer?

How far would you be willing to travel to attend a live event?

In your opinion, what would be the ideal length of the event, course, or program?

With what knowledge or skills would you like to leave the training?

Why do you want to learn this information? How will the program specifically benefit you?

When you design money management programs around suggestions from potential participants, you

improve the program’s chances to exceed attendee expectations and meet their learning capabilities.

When participants feel a part of the creation process, they support the program. Conducting a simple

pre-event survey can guide not only the information presented and the delivery methods, but indicates

where participants fall in terms of willingness to make positive financial change.

Using the Transtheoretical Model of Behavior Change (aka Stages of Change Model) allows you to assess

participants’ readiness to apply personal financial behaviors—learned during your event—to making

positive life change. If you develop materials and outreach methods according to survey findings, you

will maximize participant learning and motivation.

Integration of objectives. Aligning the organizational objectives with the financial literacy initiative is

essential to program sustainability. For instance, if a credit union’s current initiative is launching a new

money market program, the organization might design a financial education for employees program

aimed at the demographic to which that type of product is likely to appeal.

Aligning the financial literacy program objectives with broader organizational goals also helps garner

support among other groups within the organization. Enlisting the support of upper management,

marketing and public relations departments, and employees from other areas can help the program

grow and succeed.

Step 2: Development

Once planning and initial market testing are complete, the program development stage may begin. The

strategic development team should work to build a program that reflects the information collected

during the planning phase, applying creative resources to develop a unique program designed for

lasting, positive impact.

Measurement. All financial literacy initiatives should set clear, achievable goals and include a

measurement component to quantify program success for both participants and the organization.

Identifying key outcomes early in the development process helps ensure that program design meets

educational objectives.

Participants. Using Bloom’s Taxonomy of Higher-order

Thinking Skills as an indicator, you can move participants

beyond cursory knowledge to framing their own ideas

around personal finance topics. Credit unions can measure

participant impact in three key ways:

1) Pre- and Post-testing. Testing is critical to measure

program impact. At minimum, testing should measure

three areas associated with financial capability:

motivation, topic knowledge, and ability to identify initial

action steps.

2) Surveys. Conducting participant surveys at the

conclusion of a financial literacy promotion will teach

you more about the participants and guide future

program improvements.

3) Behavior Change. A key objective of an effective financial

literacy program is to facilitate long-term behavior

change. Behavioral measures should be reserved for

comprehensive financial literacy programs that provide

professional-level personal finance training. For

example, a program that teaches people to save money

might develop a system to track the amount of savings

participants deposit each month upon program

conclusion.

Organization. Clear, quantifiable organizational objectives should be established prior to the financial

literacy promotion. How many clients do you seek to acquire? What actions would you like current

clients to take? Many questions are possible, but one remains fundamental: How does your

organization measure success?

Client experience. Most financial education initiatives are boring. Successful initiatives are those that

maximize the experiences of end-users, sponsors, and hosts alike. Programs designed to be

entertaining, engaging, and educational help ensure optimal enjoyment and significantly improve

retention rates.

1) Look and Feel. Even the highest-quality educational material will fall short if it lacks experiential

and visual appeal. Strive to connect with the end-users. Leverage all five senses when you host

an event. Create a program your constituents will talk about long after the promotion ends.

2) Teaching/Outreach Style. Motivation, engagement, and education are all important elements of

a financial literacy campaign. Each person learns differently. Use Gardner’s Multiple

Intelligences Theory to design your campaign’s educational portion. This theory suggests nine

learning intelligences toward which students gravitate; work to ensure that your campaign

addresses the most common.

3) Material. Balancing practical and educational standards, deliver material best-suited to your

target audience. The most effective financial education material is practical in nature and

provides “real-world” examples to which the audience can relate. Combining theory-based

education with practical information ensures overall program effectiveness.

4) Multiple Touchpoints. Each person learns differently. Instructional diversity helps an initiative

connect with participants who have various learning styles, while increasing the initiative’s reach.

An ideal program mix might include live events, guidebooks, virtual learning centers, software

programs, phone applications, games, webinars, and more.

5) Support Group Training. To expand initiative reach, design additional material for professionals

who support target client development. This step is especially important to serve youth and

seniors. Training support teams to reach target participants not only improves both near- and

long-term outcomes, but also helps organizations increase program reach.

Creating an engaging financial literacy campaign with multiple touchpoints that also involves those who

support the targeted client helps motivate and educate your participants, moving them toward positive

action.

Instructor training or selection. Financial educator training is critical to the success of any type of event.

The person who delivers the information carries enormous responsibility for the initiative’s impact. You

have options regarding choosing or training instructors:

1) Hire a personal finance professional. Keep your clients in mind as you consider potential

instructors. Review references, view demo reels, and/or attend one of the professional’s

events.

2) Train a staff member. Training a staff member to deliver the information offers an affordable

option to hiring a professional. Choose reliable staff people who are capable to engage,

motivate, and educate participants.

Support staff training. Training each person who takes

a role in the event also helps ensure the program’s

success. Clear directions and training should be

provided to all those who are involved on any level of

the initiative. The marketing and public relations

department play an important role; bring them on

board. Direct-line customer service staff also forms a

critical element; those employees can source leads and

track clients recruited through the financial literacy

initiative.

Step 3: Activation

Awareness. The financial literacy movement is at a tipping point. The more awareness surrounding a

campaign, the greater its impact on the worldwide movement. Hundreds of quality financial literacy

programs take place nationwide each year. Unfortunately, most attract only a small number of

participants and lack media coverage. Spreading awareness serves not only the financial literacy

movement, but also its hosts, sponsors, partners, and the community as a whole.

1) Relationships. Collaborating with groups that serve your target market increases the reach

and frequency of your message. Schools, influential citizens, media, collaborative sponsors,

nonprofit organizations, community groups, and political leaders can be excellent promotional

partners. Strategic relationships offer an excellent way to build your business while you help

partners meet their objectives. Opening lines of communication with other organizations and

understanding their needs builds “win-win” relationships that elevate all parties involved.

2) Public relations efforts. Financial literacy is a current hot topic in our society. Creating unique

promotions by enlisting the support of the public relations department helps build an initiative

that accomplishes awareness objectives. Include post-promotion PR to maximize the

campaign; use this vehicle to highlight the participants’ survey, pre-test, and post-test results

to lengthen overall promotion time.

3) PSA campaigns. Media for Public Service Advertisements often can be secured at a discount.

Create a PSA that raises awareness about financial literacy, positioning your organization

while saving marketing dollars.

4) Traditional marketing methods. Leverage those promotions and ad placements already

proven effective by your marketing department. Work with the marketing team to promote

financial literacy initiatives within their current media plan, or create a new campaign.

Launch. Final execution of the financial literacy program—whether you stage a live event, webinar or

other promotion—is the point where all the planning and preparation stages come together. If you

followed the previously-recommended steps closely, this phase should include the following:

Review. Before program launch, review your notes

from earlier phases. Ensure that your initiative remains

on track to meet your goals and objectives.

Preparation. Readiness for event launch or event must

include a detailed, written game plan providing clear

instructions to everyone who takes a campaign role.

For larger initiatives, several practice launches are

recommended.

Vigilant enjoyment. The launch of a campaign or event

is exciting. Enjoy the experience, but stay vigilant and

focused. Proactively address issues; take time to

connect with participants.

Over-deliver. Over-delivery requires that you manage

expectations from the outset. Share some positive

surprises—subtly presented—with sponsors, partners,

participants and associates during the launch.

Reward. Show your appreciation for the efforts of all those who supported your campaign. A

card with a moving client testimonial, an event photo, and a personal thank you from the

initiative leader will make a lasting impression. A camera-ready article highlighting their efforts

not only makes partners and sponsors feel good; such articles often go viral to create additional

exposure.

Report. Conclude the initiative by compiling a comprehensive report addressing progress

toward organizational and participant goals. Include photos and participant testimonials.

Bridge the gap between quantifiable success and the impact on the lives of those touched.

Building a sustainable, effective financial education campaign takes superb planning and effort. But the

potential long-lasting results can help organizations and participants alike to reach a stunning level of

success.

Case Study: Penn State

The National Financial Educators Council developed a comprehensive statewide initiative aimed to

empower Pennsylvania residents with a practical financial education. In partnership with the Behrend

College at Penn State Erie and the Center for Financial & Consumer Outreach, the NFEC designed an

outreach campaign closely aligned with partner objectives.

During the pre-launch phase, extensive time was spent building relationships and developing a program

that met University program objectives. Leading up to the launch date, the NFEC conducted an

awareness campaign; further focus was placed on developing collaborative relationships with schools

and nonprofit organizations. These efforts aligned with Penn State’s objective to connect with

community groups to encourage higher education and desire to develop a college money management

program.

The ongoing campaign launched with a high-profile event: the High School Symposium. More than 400

youth, educators, and volunteers participated in this two-day event. Youth from 15 high schools took

part in the NFEC’s Real Money Experience hands-on financial literacy workshop. Here students visited

12 booths where they received tools for handling the financial decisions they would face post-

graduation. At the same time, educators and volunteers took part in the NFEC’s Certified Financial

Education Instructor training program so they could continue delivering the lessons the students learned

at the RMX event.

The High School Symposium launched the statewide educator training initiative. Educators from more

than 100 schools and nonprofits undertook a portion of the NFEC’s Certified Financial Educator

Instructor training program. The NFEC trained the Director of the Center for Financial & Consumer

Outreach to teach volunteers, educators, and concerned citizens how to deliver financial literacy

lessons. This ongoing service is now offered across Pennsylvania; the influence and impact of the

service is magnified as qualified people share the message of financial literacy with youth statewide.

The educator training outreach launched phase three of the initiative: the Financial EduNation

Campaign. The Financial EduNation Resource Center provides complimentary personal finance

resources to parents, students, educators, and community groups. These materials, developed by the

NFEC’s highly-qualified team of educators, financial professionals, and financial education experts,

include curriculum, multimedia learning centers, training, and access to turnkey money management

programs. The Resource Center was custom-branded for Penn State.

The fourth phase focused on awareness and expansion of the Financial EduNation Campaign. A solid

foundation of supporters, partners, and internal advocates are currently building this initiative from the

foundation laid in its first three phases. The high-profile High School Symposium and Real Money

Experience events were annualized to provide signature events for the community. The NFEC’s public

relations team is launching a comprehensive media outreach campaign, starting with a statewide Public

Service Announcement and enlisting celebrity supporters to bring the initiative into the mainstream.

The Penn State campaign has achieved sustainability. Partners, sponsors, and collaborative efforts have

ensured that the outreach associated with the campaign pays for itself. Thus the program reaches the

largest number of youth and people across Pennsylvania who support youth development.

www.FinancialEducatorsCouncil.org | Traci@FinancialEducatororsCouncil.org | 714.960.4665 ext 7000