Stand Ready: Supporting Members’ Financial Preparedness
By CrossState Credit Union Foundation & Members 1st Federal Credit Union
With September coming to a close, so does National Preparedness Month, a reminder of the importance of staying ready for whatever emergencies may spring up. A key aspect of that is financial preparedness—and it’s something members should focus on year-round.
Michelle Mowrer, VP of Retail Services for Members 1st Federal Credit Union, and Sue Ward-Diorio, Executive Director for CrossState Credit Union Foundation, highlight what it means to be financially prepared, ingraining positive habits young, and the role credit unions play in supporting their members’ futures.
Why is financial preparedness so essential?
Michelle: As a credit union, we believe financial preparedness is one of the most important steps someone can take toward achieving long-term financial well-being. Whether it’s a job change, medical expense, car repair, or other unforeseen event, having funds saved can help reduce stress and provide options during difficult moments.
Sue: A great tool for teaching financial literacy among youth is a Financial Reality Fair, which offers a hands-on budgeting simulation, and a key component is spinning the “Wheel of Reality.” Sometimes it will give students an expected gift, but they can also get a sudden expense, such as a flat tire. It can’t be overstated how important it is to develop the mindset to be prepared for surprises so you aren’t put in a tight spot when one comes.
What does financial preparedness look like in practice? How much should someone keep in emergency savings?
Michelle: Financial preparedness looks different for everyone, but it typically includes having a budget, understanding your financial goals, managing debt responsibly, and setting money aside in savings. An emergency fund can serve as a financial safety net when life doesn’t go according to plan.
Many financial experts suggest setting aside three to six months’ worth of essential living expenses, including rent or mortgage payments, groceries, and utilities.
What are the barriers to being financially prepared? What strategies can members use if they aren’t able to save a lot?
Michelle: When budgets are tight, saving can feel out of reach. Others may not know where to start or may feel discouraged if they can’t set aside large amounts. The good news is that every dollar saved matters. Even small, consistent contributions can make a meaningful difference. Setting up automatic transfers, saving a portion of a tax refund, directing part of a pay increase into savings, or setting aside a few dollars each week can help build momentum.
Sue: Anything related to finances can often feel intimidating—it’s why so many people don’t even like to talk about money. But by having those conversations and taking simple steps, it can help you regain a sense of control and look at your situation from a practical perspective. From there, you can see which of those small steps Michelle mentioned can be feasible for your budget.
How can credit unions support their members in being financially prepared?
Sue: Education is at the heart of financial preparedness, and credit unions are more equipped than most financial institutions to support people in this way. You know your members, you know their needs, and you have the expertise to give them valuable guidance and resources.
Youth education is an especially valuable place to put your focus, such as through a credit union youth savings program and working in your community at libraries and in schools. The earlier young folks learn good financial habits, the more ingrained they’ll be to help ensure they stick for a lifetime.
Michelle: At Members 1st, our commitment to “people helping people” comes to life through education, guidance, and resources that help members build financial confidence. Through complimentary financial education programs, workshops, resources, and one-on-one guidance, we help people better understand topics like budgeting, saving, credit, and homeownership.
Ultimately, financial preparedness isn’t about having the highest account balance—it’s about having the knowledge and support to move forward with confidence. Consider how your credit union can fortify itself as a resource and help your members take positive steps for a stronger financial future!