RALEIGH, N.C.–What do college students really think and know about credit unions? What do they really think and know about 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 Zogo 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 can be found here.
Name: Ana Devkota
Age: 20
Hometown: Cary, N.C.
Major: Clinical Laboratory Science
Grade: Junior at University of North Carolina
Fun Fact: Was born in Nepal
Zogo: How did you learn about personal finance in high school?
Devkota: I started working when I was 15, full-time, so I was earning a lot of money. I had to learn how to handle all of that money. It was all self-taught; I would do research.
Zogo: What do you remember from that experience?
Devkota: I figured out how much of my budget I was spending on food and how much on other stuff. I also have this Excel worksheet where I keep how much I’ve spent.
Zogo: How can a person increase their credit score?
Devkota: First, apply for a credit card and make payments and don’t use extra money that they don’t have. Also, just buying things and being able to pay them off in time.
Zogo: What is an insurance deductible?
Devkota: I don’t think I can tell you this. I guess like the amount you pay for insurance that they have to take beforehand so that you can be included in the insurance? I don’t know.
Zogo: Can you describe banks to me?
Devkota: When I think of banks, I think of them as like a whole system. The bank relies on you giving them money that they hold onto, but they don’t even have the money at that moment. They give it out to other people.
Zogo: Who do you bank with?
Devkota: Bank of America
Zogo: What is your relationship with your bank?
Devkota: I think it’s good. My parents have Bank of America. I think I’m pretty satisfied. I don’t expect a lot from them.
Zogo: Do you feel loyal to your bank?
Devkota: I haven’t had a reason to go to a different bank, so yes.
Zogo:Can you describe credit unions to me?
Devkota: I cannot. I can try, but I.... I know we have a lot. I don’t know what they’re used for.
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.
After hearing this description of credit unions, how has your attitude towards credit unions changed?
Devkota: It’s made me more open to the idea. I don’t think that statement alone will make me change. I think I would have to do more research.
Zogo: What are some things that a financial institution can do to make you feel loyal towards them?
Devkota: It’s just like a relationship that needs to be established. Like knowing that financers in that bank are looking at your account and giving you suggestions. On the website, Bank of America shows you your budgeting, so that’s cool. Different techniques like that that show you how to handle your money better.
Zogo: So you would feel loyal towards a bank that would teach you more about personal finance?
Devkota: Yes.