Why Credit Unions are the Best Place for Children to Save
03 May 2019
Starting a saving plan from as early as possible is important for children to sharpen their saving abilities and to determine important money-management skills in later life.
Starting children’s savings in a piggy bank or a jar is a great first step and allows them to see their money build up – giving them a real sense of achievement. Once they’ve reached a certain level with their savings though, opening a children’s saving account is a great way to ensure security, success and also a sense of responsibility and independence.
Opening a children’s saving account with the credit union
Credit unions are run by the community, for the community. They are friendly, welcoming places with valued services. For children, saving money in a place which is so embedded in the community could be a real benefit and could also teach them the value of a community and the importance of collaborating within it.
So, why is the credit union the best place for your child’s savings account?
Credit unions offer excellent member services: A great environment to kick-start your child’s saving journey
Credit unions are run for the benefit of their members and all decisions are made at local level, which means the service is tailored towards the needs of those in the common bond.
Credit union’s are community based: It can help teach them the importance of community
As mentioned, Credit unions are made up of people from the local community, who share a common bond – whether it’s where they live, the industry they work in or an association they belong to. Savings in the credit union contribute to the loan fund, which directly benefits other members and helps develop the community.
This environment, which involves the local community, is a great place to open a children’s saving account and kick-start your children’s saving habit.
Credit Unions are member owned: It can help each them the concept of a member-owned organisation
Credit union members are all shareholders, and they operate on a one member, one vote basis, which means everyone has an equal say in how it is run.
The theory of a community-owned organisations is a great concept to teach children, and a great movement to get them involved with.
Credit unions are not-for-profit: a great concept to teach children
Credit unions are run for the benefit of their members, not to profit from their needs. Unlike banks, where profits go to third party investors, any surplus income generated by your local credit union is returned to members as a dividend or else invested in improving and expanding the service.
Credit Unions have reasonable rates on loans: This can help them in the future
While this might not be immediately relevant to your children, credit union members are able to take out loans at very reasonable interest rates. This will definitely come in handy when it comes to college, travelling the world or buying that first car!
Take the first step to help your children save – contact your local credit union and open a children’s saving account today.