Grads returning home affect two layers of credit union membership.
A good job is hard to find. Actually, any job is scarce these days. And it’s harder for the fresh-from-school crowd to find work. They are moving home in droves.
Parents are happy to see their children, but that doesn’t mean the transition will be easy, especially if financial hardship is a new part of the family portrait. For credit unions, this period of flux for members serves as a way to offer support and strengthen relationships.
An Oct. 14 article on CNNMoney.com detailed the plight of young adults caught in an unforgiving market. Unemployment for people aged 20-24 is reported near 15%, and a survey shows 85% of 2010 college graduates planned to move back home.
The equation is simple for parents: Unemployed child + living at home = increased financial responsibility.
Again, this isn’t to say that parents aren’t thrilled when their children return; rather, there are new realities.
Think about members who have lost a job and now must support a young adult. The economic impact could be significant.
Most kids who move home do so to save money not contribute to the electric bill or buy detergent. Credit unions should devise ways to put money back in members’ pockets. Think refinancing. Find ways to engage young adults that return to your community. Think Twitter. Think mobile banking.
If you do it correctly, you can generate business, strengthen relationships and turn saving money into a family activity.