Student loans account for the highest share of America's millennial debt, comprising 40 percent of their total credit and loan balances. And a staggering 45 Million people across the U.S. are carrying student debt with a fifth of them owing $100,000 plus. In fact, data from the Federal Reserve shows that the amount of student loans stood at $480 billion in 2006 and by 2018, the debt had mushroomed to $1.53 trillion.
The budgets of millennials and Gen Z are stretched to the limit, and as they’re starting out in their careers they may not get the budget from their employers. And it’s starting to impact young members’ view of value. In our recently published Young Members 2.0 report, only 40 percent of young members report their experience is “worth of the dues (I) pay to be a member.” When asked why they let their memberships lapse, young members told us, “(Associations) need to increase the value of benefits if they are increasing fees,” and, “Sometimes I need a payment plan.”
What is affordability?
What can young members afford? How can associations work to eliminate those barriers and make membership more accessible to those millennials and Gen Zs interested in joining?
You told us you want to know more on this important topic and we’ve heard you loud and clear! we’re taking a deeper dive into Young Members and the idea of affordability. Join us at 11:30 AM CT on Tuesday, March 26th where we’ll explore this important topic in detail, including:
- The programs and engagement tactics most influential in establishing a strong perception of value with young members
- The median price of membership and how it squares with what we know of the financial burdens millennials and Gen Z are facing
- Actionable steps associations can take to eliminate cost as a barrier to joining – or renewing
Affordability also isn’t just about the pricing on your website. It is about how you package and offer your selection of programs and benefits, and to whom. This approach to pricing will help you understand what your young members truly want, and what features should be developed over time.