MICHIGAN SCHOOLS AND GOVERNMENT CREDIT UNION AND WALSH COLLEGE PRESENT INSIGHT INTO FINANCIAL HEALTH OF LOCAL RESIDENTS

Michigan Schools and Government Credit Union (MSGCU) and Walsh College have found that a large percentage of residents of Oakland and Macomb counties are dissatisfied with their financial situation, despite enjoying above-average median household incomes and higher levels of education than the state and national averages. 

The findings come from the State of Financial Knowledge, a detailed study by Walsh College, commissioned by MSGCU that gauges the level of financial awareness and financial satisfaction in Oakland and Macomb counties.  

Residents of the two counties with a lower level of understanding of basic financial knowledge had elevated levels of stress, reported Linda Wiechowski, Ph.D. Professor, Finance and Economics, Milena Thomas, adjunct assistant professor, and Terri Washburn, Ph.D.Professor - Business Information Technology, co-authors of the study. In addition, respondents often believe they lack important financial knowledge and are uncertain what to do in order to address financial concerns.

The survey is the first collaboration between the two organizations. It was designed to provide insight beyond what could be extrapolated from national data into the communities served by MSGCU, particularly as those communities have sustained financial strain for an extended period of time. 

Among the study findings: 

• 35 percent of participants reported being "somewhat" to "completely dissatisfied" with their financial situation. Women report feeling less satisfied with 40 percent “somewhat” or “completely” dissatisfied, in contrast with men, at only 29 percent for the same feelings.

• Cash flow and servicing debt was an area of concern with 39 percent of respondents reporting that they spend at least half of their take-home pay on debt, such as mortgage, home equity, and car loans or leases. Of these, 48 percent reported experiencing stress "often" or "constantly." (New Consumer Financial Protection Bureau guidelines suggest borrowers’ debt should make up 43 percent or less of their gross income.)

• Perception of financial competency (whether perceived or actual) appears to affect one’s level of stress.  Only 16 percent of those who reported their perceived financial knowledge score as “excellent” reported they experienced stress about their personal financial situation on an “often” or constant basis.  As perceived knowledge decreases, the percentage of those experiencing stress at an “often” of “constant” basis increases significantly.

• Those that had some financial training through workshops, a related degree, or were self-educated in financial matters were more satisfied with their personal household financial situation and had a higher knowledge score.
• Saving for retirement and feeling that the future for a comfortable retirement is likely reduces both the frequency and level of stress.

 As a result of the survey, MSGCU is announcing its “Year of Financial Wellness."  

"While April is Financial Literacy Month, we believe financial knowledge is important every day of the year," Pete Gates, MSGCU President and CEO, said. "In response to what we have learned in this study, we are going beyond the month of literacy and announcing  a ‘Year of Financial Wellness’ to provide financial education and support to our members, specifically, and to the community at large. We want to empower people to be proactive about seeking assistance with their financial situations and making better decisions – both actions that are hampered by a lack of financial knowledge and financial self-confidence. "

Announced throughout the year will be public programs and special events designed to increase financial knowledge, build self-confidence while making financial decisions, and raise awareness of new resources for financial information and guidance. Activities will also include opportunities to meet in-person with MSGCU financial advisors to learn about debt management and to better understand credit report information.

CEO Pete Gates continues, "We have always provided financial education to our members and the community. It's what distinguishes us from other financial institutions. The results of this survey are a call to action about the need for even more support.”

In the Year of Financial Wellness, MSGCU will introduce enhanced ways to access information online, via online chats with financial experts, and through informative videos. Educational materials will be available 24/7 for those cited in the study, such as time-pressed residents, a population that includes students and working female heads of households.

All activities will be free of charge and open to MSGCU members and to the general public. Events will be hosted throughout the communities of Oakland and Macomb counties at MSGCU branches, as well as additional locations. Check often for updates at www.Msgcu.org/workshops.

MICHIGAN SCHOOLS AND GOVERNMENT CREDIT UNION
For nearly 60 years, Michigan Schools and Government Credit Union has been providing quality financial services to its members. Founded by a small group of teachers, MSGCU now has more than 90,000 members, over $1.5 billion in assets and more than 250 employees. The credit union has consistently received Bauer Financials highest rating, five stars, and has obtained a member satisfaction rating of 97% in 2013. In 2013, MSGCU was named one of the Top Workplaces in Michigan by the Detroit Free Press.

With 11 offices located throughout Macomb and Oakland Counties, MSGCU offers a full range of loan, savings and checking products and financial services for consumers and businesses. For more information, visit www.msgcu.org, or call (586) 263-8800 or 1-(866)-MSGCU4U

WALSH COLLEGE
Founded in 1922, Walsh College is a private, not for profit institution offering upper-division undergraduate and graduate business and technology degrees and certificate programs.  One of Southeast Michigan’s largest business schools, Walsh has locations in Troy, Novi, Clinton Township and Port Huron, as well as online. Walsh’s business services division offers the Walsh Institute, which provides solutions for businesses through training, continuing education, and consulting.

Walsh is accredited by The Higher Learning Commission of the North Central Association of Colleges and Schools (www.ncahlc.org; phone: 312-263-0456) and the International Assembly for Collegiate Business Education (IACBE, www.iacbe.org). The Accreditation Council for Business Schools and Programs (ACBSP, www.acbsp.org) accredits specific degree programs.        

WALSH CONTACTS:

Brenda Meller/Assistant Vice President, Walsh College bmeller@walshcollege.edu or 248-823-1205.

Alicia Boltach/Account Supervisor, Airfoil Public Relations boltach@airfoilgroup.com or 248-304-1453.

MSGCU CONTACTS:

Lorie F. Dietz/Vice President of Marketing and Business Development, MSGCU, ldietz@msgcu.org  or 586.263.8800, ext. 824, Melissa Bunker, marketwrite@comcast.net 313-886-9074.