Financial Counseling Certification Program (FiCEP) Practice Exam

For credit unions, successful financial education programs lead to what outcome?

1. Increased member turnover

2. Greater financial instability among members

3. Improved member loyalty and retention

4. Higher late payment rates

The correct answer is: Improved member loyalty and retention

Successful financial education programs in credit unions lead to improved member loyalty and retention because they empower members with essential financial knowledge and skills. By understanding financial concepts, budgeting, saving, and managing debt, members are more likely to make informed financial decisions. This education fosters a sense of belonging and trust between members and the credit union, as members feel supported in their financial journeys. When members see the tangible benefits of financial education—such as improved financial stability and the ability to make better financial choices—they are more inclined to remain with the institution. This enhances member engagement and satisfaction, reinforcing the bond between the credit union and its members, which ultimately leads to long-term loyalty. In contrast, increased member turnover, greater financial instability among members, and higher late payment rates would indicate negative outcomes that typically arise from a lack of financial education and support. Without financial literacy, members may struggle to manage their finances, leading to dissatisfaction and potential reasons to seek services elsewhere.