Many Americans are struggling financially, with an estimated two-thirds of workers living paycheck to paycheck. Between stagnant salaries and rising costs, paying bills on time has become a precarious juggling act for a growing number of households, fueling anxiety and uncertainty about the financial future.

For community banks and credit unions, that challenge is also an opportunity to do what they do best: help people build stronger financial foundations. By offering practical guidance, valuable resources and services that make day-to-day money management easier, financially empowering account holders can cement a community bank or credit union’s reputation as a true partner. Whether it’s general financial literacy or service-specific offerings, educating account holders about their options goes a long way in building trust and long-term loyalty.

Why Education Matters

Education is a key part of financial well-being. When account holders understand how to manage money, they make better choices for themselves and their families. They feel more confident and worry less.

Community banks and credit unions should offer educational opportunities clearly focused on the account holder’s best interests. Besides being the right thing to do, it’s just good business. Account holders who know their institution has their back are more likely to explore new services, share personal referrals and stay loyal in the long-term. In a competitive market, that kind of trust goes a long way.

Learning Interests and Preferences by Generation

Of course, one size doesn’t fit all when it comes to financial education. A young adult just earning their first paycheck has different needs than someone planning for retirement. Tailoring your strategy with data-driven targeting and relevant information helps you meet people where they are and boost engagement.

While there are many ways to segment and target your account holders, understanding generational interests and preferences is essential.

Baby Boomers

Surprisingly, 42 percent of Baby Boomers say they don’t want financial advice from their banks. Often, that’s because they view most advice as irrelevant to their stage of life. Despite that, many are still receptive to resources related to topics like retirement, generational wealth transfer, estate planning, healthcare and fraud prevention.Baby Boomers (and beyond) may appreciate help with newer digital tools and features, and often prefer in-person sessions and guided discussions. Focus on clear, practical information that helps them navigate these subjects without overwhelming them.

Gen X

Gen Xers are often pulled in two directions, supporting both their children and aging parents, which fuels money stress. About 60 percent report that money concerns affect their mental health, yet only 37 percent feel their financial providers truly understand them.This self-reliant generation responds well to a proactive approach. Targeted digital messaging about relevant products and services, including consumer liquidity options, can effectively reach and engage Gen Xers. Supporting multi-generational planning with tools for saving, caregiving and estate planning also shows you understand their unique and complex financial reality.

Millennials

Nearly 60% of Millennials worry about finances, compared with just 37% of Baby Boomers. This financial stress is causing many to delay major life events, like marriage or starting a family, putting them on a different financial path than older generations. Millennials are also heavy credit users, with 36% using a credit card one or more times per day, and 34% admitting to missing a payment in the past year.Because they’re so comfortable with technology, targeted digital messaging about topics of interest like security and budgeting can be an effective engagement strategy. Millennials are often influenced by people they trust, so referral programs can be highly effective. Social media also plays a key role in engagement, with 43% reporting its use to connect with financial institutions.

Gen Z

Financial literacy among Gen Z often falls short. They scored the lowest on TIAA’s annual Personal Finance Index, answering only 38% of questions correctly. Foundational money skills are essential, but traditional methods of communication aren’t the most popular. Half of Gen Z say TikTok is their number one stop for financial advice, with budgeting (25%), investing (24%) and credit scores (22%) as the most-searched topics.Banks and credit unions can learn from TikTok’s bite-sized, engaging format that makes these subjects easier for busy Gen Zers to grasp. Offer digital tools, interactive experiences, short in-app or TikTok lessons and informal peer gatherings, like coffee shop meetups, to effectively reach and educate this audience. Gen Z also values gamified learning experiences, including digital rewards like badges and achievements.

In short, financial institutions need to explore a variety of channels to reach and teach diverse audiences and meet account holders where they are.

Teaching About Your Services

While you’re providing general financial education, you can also teach account holders about some of your services and their benefits. These can include:

Overdraft Protection

Overdraft programs appeal to people of all income levels and ages, whether they’re trying to make ends meet, need to cover an emergency expense or just want the convenience of ensuring a payment isn’t declined.However, many consumers don’t fully understand how overdraft protection works. Explaining your policies with simple language and example scenarios can help people feel more comfortable using it, if needed. For example, “If your balance is low and your rent is due, overdraft protection ensures the payment is made.” Highlight the value of paying a one-time fee to avoid late payment penalties, service interruptions, embarrassment or a lowered credit score.

Tiered Debit Card Rewards

Debit card rewards programs offer tangible value, especially to younger consumers who prefer using debit to credit. Show account holders the discounts and cash back they could earn by paying a small monthly fee for a rewards card and help them determine if the ROI will benefit them based on their spending patterns. This transparency helps build trust and lets account holders make informed decisions.

Referral Programs

Referral programs don’t just benefit the financial institution. Account holders can receive a bonus for each referred person who signs up for a checking account. Promote your referral program’s benefits clearly and simplify the steps: who to refer, how easy it is, how the bonus works and how both parties benefit.

Educating account holders about these services helps them understand what they can access, how to use them and what’s right for them.

Ideas for Account Holder Education

With a blend of digital tools and human interaction, community banks and credit unions have the potential to reach a wide audience in a number of ways:

• Offer in-app or online micro-learning modules. Create two- to five-minute lessons on topics of interest to your account holders. Short lessons are easier for people to fit into their busy lives. Follow up with push notifications or nudges to reinforce learning.
• Send personalized prompts. Use data intelligence to customize messages and remind account holders about services, tools or events.
• Host in-person events for varied audiences. Try “Money & Coffee” meetups for younger account holders, “Budget Brunches” for families and “Retirement Chats” for older adults to have face-to-face conversations in-branch or at community locations.
• Offer one-on-one counseling. Identify account holders who may benefit the most from individualized attention, and invite them to meet with a trained staff member.
• Gamify learning. Younger generations like to earn rewards, points and badges for specific activities, like completing a module or using digital account tools.
• Create educational content for social media. Many people, especially younger consumers, get their news and financial advice from social media. Meet your account holders in their favorite apps like TikTok, Instagram and X, with informative posts, clips and offers.

Once you implement educational initiatives, the next step is understanding their impact.

Evaluating Outcomes of Your Financial Education Efforts

Measuring the results of your programs helps you demonstrate ROI to leadership, fine-tune programs and strengthen account holder relationships.

Common metrics to focus on include:

• Financial health and behavior, like improvements in savings rates, account balances, credit scores and debt-to-income ratios.
• Product and service utilization before and after related educational efforts.
• Loan performance, such as a decline in defaults or late payments.
• Membership growth and retention before and after implementing financial literacy programs.

Beyond financial outcomes, it’s important to know how your account holders are learning and engaging with your content by monitoring:

• Platform analytics, like login frequency, lesson completions and time spent learning. For social media content, views, likes and comments are easy engagement metrics to gather.
• Knowledge gained, which can be measured with pre- and post-assessments or micro-surveys.
• Event attendance for your online and in-person workshops, webinars and meetups.

Armed with this data and feedback, you can continue to grow and improve your educational initiatives, benefiting both your financial institution and your account holders.

Building Relationships Organically

When it comes to personal finances, ignorance is never bliss. The more information consumers are armed with, the better decisions they can make. By providing your account holders with valuable resources, you’re showing up for them and positively impacting their lives. As they move through different stages of their lives, they’ll know they have a trusted partner to help guide them through financial intricacies and steer them in the right direction.

Account holder education can be an effective retention and growth tool. For more ways to build trust and relationships, check out our white paper: Winning the Battle for Deposits.

Read the white paper