Lessons from credit union innovators: Empowering foster youth with financial education

by Christine Hickey, Financial Health Program Senior Manager

In 2024, nine credit unions across the United States were awarded nearly $300,000 in grant funds by the National Credit Union Foundation to develop programs addressing the financial education needs of youth in foster care. Financial literacy is a glaring gap among the more than 400,000 in foster care: youth in and aging out of care often lack guidance, savings, and exposure to healthy financial habits—placing them at a disadvantage during a pivotal life transition.

We celebrate Allegacy Federal Credit Union, Altra Federal Credit Union, Colorado Credit Union, First Credit Union, Jefferson Credit Union, Oklahoma’s Credit Union, Revity Federal Credit Union, Rize Credit Union, and Virginia Credit Union for their urgency in addressing this gap. Through their focused work, these industry leaders quickly discovered that success required more than just good intentions. It called for connection, creativity, and a thoughtful balance between mission and margin.

Here are a few key lessons they shared from their experience:

1. Get the CEO involved—early and often

Leadership buy-in was one of the strongest predictors of success. When CEOs were visible champions for the work, it sent a message throughout the organization that this wasn’t just a side project—it was part of the credit union’s core mission.

“When leadership embraces financial well-being as part of the credit union’s DNA, it transforms everything,” said Catie McDonald, Chief Impact Officer for the National Credit Union Foundation. “Buy-in from the top signals that these innovative programs aren’t just nice-to-have—they highlight the credit union’s strongest differentiator—its people-first mission—while holding the potential to benefit more members of the credit union’s community than initially scoped.”

2. Use local media to tell the story

Local news outlets and community papers are powerful partners. Sharing program success publicly helped these credit unions celebrate youth participants, attract new partners, and demonstrate impact in a tangible way.

3. Incentives don’t have to be big—but they can be meaningful

Simple gestures—like a gift card, certificate, or note of recognition—can help foster youth feel seen and valued. At the same time, modest financial incentives can serve a dual purpose: encouraging participation while giving individuals a chance to practice saving and begin building financial confidence.

4. Build the case with mission AND margin in mind

Credit unions found success when they connected the “why” of the mission with the “how” of sustainability. Demonstrating both social impact and member value helped gain internal support and made it easier to sustain the work long-term.

“This grant created powerful impact on the financial well-being and in the confidence of foster youth across our service areas. To date, 200 foster youth have participated in the program which is double our original goal. Beyond the numbers, the program-built self-confidence and provided a sense of dignity. Comfort Cases replaced the symbolic “trash bag” experience too often associated with foster youth, and offering personal essentials and financial resources affirmed their worth and potential.”

– Diana Cervantes, Rize Credit Union

 

5. Create personal connections

Programs were most impactful when staff and youth formed real relationships. Knowing someone by name when they walk into a branch transforms the experience from transactional to truly relational.

“I think it is important to note that the participants really needed time to build trust with the presenters. In the first cohort, I had different presenters come each session and I noticed that was not working well. The other cohorts I had the same presenters the entire time which made a huge difference when interacting with the students and engaging them.”

– Cherry Vale, Virginia Credit Union

 

6. Scale is relative. Impact is impact.

Whether serving ten people or a hundred, every step toward improving financial well-being matters. These credit unions reminded us that depth of impact can be just as powerful as breadth.

“The impact we witnessed was significant for a handful of foster youth. One of the first issues we faced was building trust. Having a year to develop relationships, consistently show up and lend support, and deliver on our commitments went a long way toward earning the trust we ultimately received. At our final meeting/celebration dinner, we were all blown away by the students’ public praise and written notes of thanks.”

– Lori Timm, Allegacy Federal Credit Union

 

7. Seek support and ideas from peers

Many of the best ideas came from conversations with other credit unions doing similar work. Collaboration not only accelerates learning—it strengthens the collective commitment the Foundation and its credit union partners have toward improving financial well-being.

Every credit union in this cohort brought unique strengths to the table. The magic happened when they shared those insights with one another—suddenly, challenges felt smaller and new ideas started to spark.

Looking to the future

The insights gained from participants in the National Credit Union Foundation’s grant programming weave together best practices in financial education through integrated, relationship-based models. They remind us that when credit unions combine head and heart, they can create lasting community impact—no matter the scale.

The National Credit Union Foundation is honored to stand at the forefront of this financial well-being innovation evolution. We believe every credit union has the power to be a transformational financial partner and invite you to explore opportunities to bring dignity, confidence, and measurable outcomes to the ones who need you most in your communities.

Story originally published on CUInsight