The credit union’s new suite of student banking products builds financial literacy
San Jose, CA (August 3, 2010) — Technology Credit Union announced today a new suite of student banking products for high school and college age kids. The Plug In student banking package includes many of the tools this age group needs to learn about managing money responsibly and building good credit.
“Consumers are making more complex financial decisions at a younger age today,” says Harold Roundtree, senior vice president of Retail Banking for Tech CU. “That’s why it’s important for us to help kids develop a better understanding of sound financial management. When someone makes financial mistakes early in life, it can have devastating consequences for years to come.”
According to a recent government report (Financial Literacy Among the Young: Evidence and Implications for Consumer Policy, 2010), financial products and literacy geared towards young adults can have important implications for financial behavior later in life.
“People with low financial literacy are more likely to have problems with debt (Lusardi and Tufano 2009), less likely to participate in the stock market (van Rooij, Lusardi, and Alessie 2007), less likely to choose mutual funds with lower fees (Hastings and Tejeda-Ashton 2008), less likely to accumulate wealth and manage wealth effectively (Stango and Zinman 2007; Hilgert, Hogarth, and Beverly 2003), and less likely to plan for retirement (Lusardi and Mitchell 2006, 2007a, 2009). Financial literacy is an important component of sound financial decision-making, and many young people wish they had more financial knowledge.”
Tech CU’s Plug In student banking package helps this age group get ahead by taking control of their finances. The package includes: Click Checking, Connect Credit Line, a VISA credit card, student loans, auto loans and online banking and bill pay. In addition, students also receive a debit card that gives them access to more than 60,000 surcharge-free ATMs nationwide. Tech CU’s Plug In web site (www.techcu.com/students) even offers advice on everything from buying a first car to affording an apartment.
Tech CU feels the business appeal for approaching “Generation Y” is that this 70–million strong market segment will create significant demand for loan products and other financial services over the next two decades.“This group is one of the fastest growing segments in financial services,” says Roundtree, “and what is even more interesting, is that they bank online and rarely, if ever, go into a branch. As this generation matures, it’s going to change the face of financial services.”
For more information about Tech CU’s Plug In student package, click /students.
ABOUT TECHNOLOGY CREDIT UNION
Founded in 1960 by the employees of Fairchild Camera and Instrument Semiconductor Division, Technology Credit Union has served the high tech workforce in Silicon Valley for 50 years. Today, Tech CU has extended its membership benefits to small businesses and individuals who live and work in the greater Bay Area. The credit union is recognized as one of the best–managed and strongest financial institutions in the country, as indicated by its 5-star rating from Bauer Financial, the nation’s largest independent rating service for banks and credit unions. Tech CU’s 76,000 members have access to 60,000 surcharge–free ATMs nationwide, online and mobile banking, 9 full-service branches in the Bay Area, and comprehensive wealth management and small business services.
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