What is a Credit Union?
Do you know what the difference is between a credit union and a bank – other than what they’re called?
Banks and credit unions, like other businesses, offer you products and services and hope to make money when you use them. That’s called making a profit. When a bank or other business make a profit the extra money goes to the people that own and run the bank. When a credit union makes a profit, it goes to the credit union so you can save and earn even more money! Credit unions are called member-owned, which means members like you help make decisions in what happens to your money. Pretty cool, huh?
Credit Unions Make it Easy to Save
You and your family probably already belong to a credit union and you may be lucky enough to have a savings account there. But it can be hard to find time to get mom or dad to take you there to put money into your account.
Did you know that your elementary school might have teamed up with a credit union in your town to make saving even easier? They’re called school branch or student-run credit unions. You might want to check with your teacher or principal to see if you have one.
What’s so great about having a credit union in your school? Plenty!
- They make it easy to save
- You can make your deposit right at school
- You earn extra money (called interest) on the money you save
- Sometimes they offer treats and prizes when you save
- Older students can volunteer to be a school teller and learn money skills
- You can become a great saver!
The holidays are coming up fast. Wouldn’t it be nice to be able to have a little money saved so you can get your family members a little gift? Or if you end up getting some holiday cash, why not save it for another day?
The secret of saving? There’s no better time to start than now! Don’t forget to start at the credit union at your school!