How Credit Unions and Fintech Partnerships Can Revolutionize K-12 Financial Literacy
By Lauren Lake, VP Education Partnerships, Goalsetter
August 12, 2024
As financial literacy becomes a critical component of the K-12 curriculum across the United States, credit unions are uniquely positioned to lead the charge in this transformative movement. By partnering with fintech companies, credit unions can play a pivotal role in helping school districts meet increasing state mandates for financial literacy education, ensuring that students graduate with the knowledge and skills necessary to navigate their financial futures.
States like California have recently made headlines by introducing legislation that mandates financial literacy as a graduation requirement. Beginning with the class of 2030, all California high school students will need to complete a semester-long personal finance course. This initiative, driven by Governor Gavin Newsom and state legislative leaders in collaboration with the national non-profit NGPF Mission 2030, underscores the importance of financial literacy in preparing young adults for economic independence. "We need to help Californians prepare for their financial futures as early as possible," Governor Newsom remarked, emphasizing the necessity of financial education in early life stages.
California is not alone in this endeavor. Several states have already implemented financial literacy laws, including Florida, Virginia, and Missouri, which require students to complete financial literacy courses as part of their high school education. States such as New York, Michigan, and South Carolina have pending legislation or initiatives aimed at integrating financial literacy into their educational systems. This growing trend highlights a nationwide recognition of the value of financial education in fostering responsible and informed citizens.
Credit unions have long been champions of financial literacy, traditionally focusing on community outreach and member education. However, the evolving educational landscape presents an opportunity for credit unions to expand their impact by forming strategic partnerships with fintech companies. These collaborations can provide schools with innovative, tech-driven financial education tools that engage students and make learning about money management, saving, investing, and credit more accessible and relatable.
Fintech platforms like Goalsetter and NGPF Mission 2030 have already made significant strides in this space, offering interactive and gamified financial education resources that resonate with today's digitally native students. By partnering with such fintech innovators, credit unions can leverage these cutting-edge tools to enhance their financial literacy programs and reach a broader audience.
The Missouri Teen Investment Program (MTIP), supported by Edward Jones and Goalsetter, is a prime example of how such partnerships can yield substantial benefits. MTIP engages high school students in after-school investment clubs, teaching them about the stock market and personal finance through hands-on experience and mentorship from financial experts. This program has not only improved students' financial literacy but also inspired them to pursue careers in finance, demonstrating the potential of fintech-credit union collaborations.
Furthermore, these partnerships can help bridge the gap between school-based financial education and real-world application. Credit unions can offer practical, real-life insights and resources, such as savings accounts and investment opportunities, directly to students and their families. This integration of academic learning with tangible financial services can solidify students' understanding and encourage lifelong financial responsibility.
In states with existing or pending financial literacy mandates, credit unions can serve as valuable allies to school districts. They can provide the necessary funding, expertise, and resources to implement comprehensive financial education programs. For instance, California's recent legislation aligns with the state's CalKIDS program, which invests $1.9 billion into college savings accounts for low-income children, highlighting the state's commitment to early financial education. Credit unions can support such initiatives by offering complementary financial services and educational programs tailored to the needs of these families.
As financial literacy becomes a nationwide priority, credit unions have a unique opportunity to stay at the forefront of this movement. By partnering with fintech companies, they can enhance their educational outreach, support state mandates, and ultimately help build a financially savvy generation. The proactive involvement of credit unions in financial literacy education not only benefits students but also strengthens community ties and fosters economic resilience. Now is the time for credit unions to embrace this role and make a lasting impact on the financial futures of our youth.
Connect with Goalsetter to learn more.
About Goalsetter
Founded by Tanya Van Court in 2016, Goalsetter is an education-first family finance and technology platform offering credit unions a 360° solution for reaching their next generation of members. A former Nickelodeon and Discovery Education executive, Tanya had a long career trajectory in creating digital products, but it wasn't until her 8-year-old daughter asked for an investment account and a bike for her ninth birthday that she realized her true calling. In that moment, she knew if she could get every kid in America to become a saver and investor instead of a consumer, she could change the world. And so, Goalsetter was born.