New Research Confirms Positive Impact of OneMain's BUILD Credit Education

Rhea-AI Summary

OneMain Financial's Build: Credit Fundamentals Program Shows Significant Improvement in High School Students' Credit Knowledge

Insights

Financial Education Specialist

Financial literacy, particularly in the context of credit management, is a foundational skill with far-reaching implications for consumer behavior and the broader economy. The reported increases in understanding among high school students who took OneMain Financial's Build: Credit Fundamentals course suggest a positive trend in preparing the next generation for financial responsibility. This preparation can lead to a more credit-savvy consumer base, which in turn may influence credit markets, lending practices and ultimately, the financial services industry.

By equipping young people with the knowledge to manage credit effectively, we may anticipate a decrease in future defaults and nonperforming loans, which can have a stabilizing effect on financial institutions. Moreover, a consumer base that is more informed about credit is likely to demand better financial products and services, fostering competition and innovation within the industry. The long-term impact of such education could contribute to a healthier economy with more robust consumer spending and borrowing patterns.

Market Research Analyst

The broad reach of OneMain Financial's credit education program, having already impacted over 300,000 students, could serve as a differentiator in the brand's market positioning. As financial education becomes increasingly valued, OneMain's association with these initiatives may enhance its reputation and customer loyalty, potentially translating into market growth. The inclusivity of the program, offering courses in both English and Spanish, addresses a diverse student demographic, which aligns with the growing need for financial services to cater to multicultural markets.

Furthermore, the commitment to funding scholarships and providing resources to families extends OneMain's influence beyond the classroom. These actions could be perceived as corporate social responsibility, which can positively affect consumer perceptions and brand equity. In an industry where trust and reliability are paramount, such educational contributions could play a role in shaping the competitive landscape and influence investor sentiment towards OneMain Financial's stock.

Economist

Financial education, particularly for the younger demographic, has macroeconomic benefits. Improved credit knowledge can lead to more prudent borrowing and spending behaviors, which are critical during economic downturns or periods of high inflation. An educated populace in financial matters can also contribute to a more stable financial system, as it reduces the likelihood of systemic risks associated with widespread credit mismanagement.

OneMain's initiative, by potentially reducing the knowledge gap in financial literacy, could play a role in mitigating the long-term risks associated with consumer debt. By fostering a generation of credit-aware individuals, the economy could benefit from a more predictable and responsible pattern of consumer credit usage. This is particularly relevant in the context of economic recovery, where consumer confidence and financial stability are crucial. The research findings, if indicative of a broader trend, could be a positive signal for stakeholders interested in the long-term health of the consumer credit market.

NEW YORK, March 7, 2024 /PRNewswire/ -- New research released today shows that students who took OneMain Financial's proprietary credit education course for high school students – Build: Credit Fundamentals – demonstrated significant improvement in understanding the importance of building and maintaining good credit, critical skills in successfully managing finances.

"The Importance of Credit-Based Education for High School Students," developed by EVERFI from Blackbaud, the leader in powering social impact through education, details the impact that Build has had on students since its inception in August 2022. The research, which followed the progress of 17,000 high schoolers who took the course, shows that OneMain's Build course has used evidence-based approaches to improve credit knowledge for high school students nationwide.

"Educational programs that focus on knowledge gains and attitude shifts are essential for creating the roadmap for future behavior change, and that is exactly the result we have seen with our Build course," said Paola Garcia Abbo, OneMain's Head of Impact. "This is further evidence of how OneMain's curriculum empowers young people with the skills necessary to navigate their financial futures successfully."

Key takeaways from the research include:

• When measuring knowledge gained from taking the Build course, students showed a 43% increase in their understanding of acquiring credit, a 40% increase in understanding the impacts of increased credit usage, an impressive 126% increase on the topic of managing credit and a 98% increase regarding addressing issues with credit.
   
• Regardless of the students' socioeconomic backgrounds, all surveyed students saw comparable gains in knowledge and healthy financial perspectives.

Build is one of the four digital courses offered in the Credit Worthy by OneMain program at no cost to schools. All four courses are available in both English and Spanish. Build is designed to help high school students develop healthy credit habits early and understand topics such as growing and managing credit and addressing issues and inaccuracies in their credit record.

Since its inception, Credit Worthy by OneMain has reached more than 3,600 high schools and more than 300,000 students across all 50 states, Washington D.C., and Puerto Rico. In addition to Build, the curriculum covers financial basics, entrepreneurship, and preparing for college or careers after high school. OneMain also offers the Credit Worthy Family Resource Center and is funding $300,000 in scholarships for students participating in Credit Worthy by OneMain.

About OneMain Financial

OneMain Financial (NYSE: OMF) is the leader in offering nonprime consumers responsible access to credit and is dedicated to improving the financial well-being of hardworking Americans. We empower our customers to solve today's problems and reach a better financial future through personalized solutions available online and in 1,300 locations across 44 states. OneMain is committed to making a positive impact on the people and the communities we serve. For additional information, please visit OneMainFinancial.com.

Media Contact:
Kelly Ogburn
410-537-9028
kelly.ogburn@omf.com

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SOURCE OneMain Holdings, Inc.

FAQ

What is the name of the credit education course for high school students offered by OneMain Financial?

The credit education course for high school students offered by OneMain Financial is called Build: Credit Fundamentals.

What are some key takeaways from the research on OneMain Financial's Build course?

Key takeaways from the research include a 43% increase in understanding acquiring credit, a 40% increase in understanding increased credit usage impacts, a 126% increase in managing credit, and a 98% increase in addressing credit issues.

How many high schools and students has Credit Worthy by OneMain reached since its inception?

Credit Worthy by OneMain has reached more than 3,600 high schools and over 300,000 students across all 50 states, Washington D.C., and Puerto Rico.

What topics are covered in the Credit Worthy by OneMain program?

The Credit Worthy by OneMain program covers financial basics, entrepreneurship, preparing for college or careers after high school, and offers the Build: Credit Fundamentals course.