cuao youth summit 2009
DESCRIPTION
Chief Mammal of Snigglezoo Entertainment , John Lanza's presentation to the CUAO Youth Summit about how credit unions can reach today's youth and make a difference in financial literacy with a great kids club.TRANSCRIPT
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
9
What are twoof today’s most
precious commodities?
10
The Time-TouchBalance
11
Robert ReiherConsumer Psychologist
12
Do you have enough TIME in the day for work
& family?
13
3 out of 4 people feel that they just don’t have
enough TIME in a day.
14
15
TOUCH
Most people want to “CONNECT” more with their
kids, their spouseand with themselves
16
17
TOUCH
“Nobody on their deathbed ever said ‘I wish I’d spent more time
at the office’.”
-Wise Person
18
Time-Touch BALANCE
19
The Time-Touch
Dilemma
20
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
24
parents
trusted caregivers
loving family members
religious, spiritual & educational organizations
trusted health
professionals
TIME-TOUCH BALANCE
INSIDE Circles of Influence
25
parents
trusted caregivers
loving family members
religious, spiritual & educational organizations
trusted health
professionals
TIME-TOUCH BALANCE
INSIDE Circles of Influence
26
INSIDE Circles=
BEST INTERESTS
27
TIME SCARCITY
CREATES
TOUCH SCARCITY
28
INVISIBLE TRADEOFFS
Values
Communication
Behavior
29
MISMATCH = DANGER
OUTER CIRCLES
OF INFLUENCE
vs.
THE HUMAN BRAIN
30
RATIONAL
Emotional BrainEmotional Brain
ReflexBrain ReflexBrain
Upshifting
Downshifting
Thinking BrainThinking Brain
3BRAINS
BEHAVIOR
31
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
59
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!
77
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
The following images were used under Creative Commons Licenses:
License details: http://creativecommons.org/licenses/by-sa/2.0/deed.en
http://www.flickr.com/photos/narciss/844589858/
http://www.flickr.com/photos/theritters/511298198/
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The background image of the chalkboard is used under license from Glen Jones through the website dreamstime.com.
The following images were used under Creative Commons Licenses:
License details: http://creativecommons.org/licenses/by-sa/2.0/deed.en
http://www.flickr.com/photos/papalars/2763115977/
http://www.flickr.com/photos/der_makabere/1635241685/
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http://www.flickr.com/photos/magical-world/2984862832/
http://www.flickr.com/photos/21804434@N02/2228247553/
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.