CU @ School

What is the CU @ School Program?

The CU @ School program is designed to teach students about financial management, using hands-on, functional learning and classroom instruction while also providing real life experiences in banking and saving.  We believe that a sound financial education in the elementary years will help children learn the rewards of financial literacy as applied to improved independence, peace of mind and financial security of adulthood. 

Why is a CU @ School Program Necessary?

Financial education is a critical issue for today’s children. Across the country, studies show that students lack even basic financial knowledge. A recent survey by the Jump$tart Coalition, a national group dedicated to improving financial literacy, found most high school graduates lack basic skills in the management of personal finances, including a “lack of insight into the basic principles involved with earning, spending, saving and investing.”  However, American teens spend a whopping $122 billion annually yet they lack the know-how to spend that money wisely. 

Consider a few staggering statistics from the Jump$tart Coalition:

• By the time a college student has graduated, chances are that he or she will have more than $3,000 in credit card debt — and have four or more credit cards.
• Teens represent a total yearly income of $80 billion
• 47% of teens age 12-17 have a savings account, 12% have a checking account, and 15% have an ATM card.
• Nearly half of the children ages 12-17 who reported earning money admit to not understanding payroll withholding taxes
• Currently just 8 states have some sort of financial education requirement for high school students.

In classrooms, teachers lack time and materials as well as the background to teach financial skills.  At home, most banking is done by direct deposit or telephone or online banking. Many money transactions are made with plastic- credit or debit cards. Because of these factors, children seldom visit banks or see people actually saving money. Little is done to nurture the ethic of savings in children. 

One way children develop the ethic of saving is to open savings accounts. This is a guaranteed way to gain financial security while establishing the ability to make later purchases without going into debt. CU @ School offers the Piggy Bank Club Savings Account along with a comprehensive in-school curriculum to provide children with real banking experiences.

What Do We Want Students to Know About Money Management?

• That by saving early and often they can accumulate assets.
• How to fill in a deposit ticket and to complete paperwork to open an account.
• How to better understand goal-setting, budgeting, saving, employment and investing as money management tools. .

• Deposits are protected up to $100,000 through the NCUASIF (National Credit Union Administration Share Insurance Fund) and the equivalent FDIC of banks.
• Credit Unions offer a variety of services such as checking accounts, savings accounts, auto loans, mortgages, gift & traveler’s checks, etc.
• Credit Unions are not-for-profit with member-owners, staff and a Board of Directors.  They rely on member-volunteers to help steer the direction and governance of the credit union. 
• Credit Unions use the money from deposit to lend to people who need loans.
• Savers earn something extra for leaving their money in the credit union. These are called dividends.
• Credit Cards are useful tools but are often abused by people who rely on them to spend more than they earn. 
• People who borrow money must pay back what they borrow plus something extra for using the credit union’s money. This something extra is called interest.
• Credit Reports are documents that banks and credit unions use to tell how much debt a person has as well as their likelihood to repay. We must be vigilant to protect our credit reports from negative reporting through timely payments and controlled credit limits.   
• Transactions can be done at a branch, an ATM machine, by using the telephone, mail, or computers.
• It is important to shop around for an institution that best offers the services you need.
• Some credit unions have a special designation to help those who are within low-income communities through special products and services to assist these needs.
• Credit Unions impact the local community through jobs, banking services, loans, and volunteer efforts.

WHAT TO DO IF YOU WANT TO IMPLEMENT CU @ SCHOOL

The implementation of CU @ School will establish regular ‘banking days’ to encourage savings as well as classroom instruction on the principles listed above. 

The first step is to plan a ‘strategy session’ with committed school and credit union representatives to customize the CU @ School program to fit the school’s needs.

• Establish joint goals and expectations.

• Review, select and prioritize the curriculum.

• Discuss the implementation process.

• Establish mutually agreeable ‘CU @ School’ days (days when students deposit money into their Piggy Bank Club Savings Account).

• Document necessary compliance procedures (from NCUA) and gather the appropriate approvals (Superintendent, school committee, etc.)

• Notify all parents/guardians/PTA

• Plan program launch to students (prizes, incentives, etc.) to generate awareness and enthusiasm.

CU @ School Credit Union Contact: Jack Jaques, Vice President of Business Development and Lending, 617.329-3220 or jjaques@winthropfcu.org