Do Something Different With Your Money—Join a Credit Union

Gas prices continue to rise, food costs are up, and the housing bubble has yet to burst — painting a bleak picture for the average American. However, there is a bright spot. More consumers are choosing credit unions to help them examine their finances, assist with wise financial decisions, and stretch their budget during difficult economic conditions.

Did you know that more than 2.6 million Ohioans are members of a credit union? Chances are you can join a credit union as well, allowing you a first-hand experience of the difference financial cooperatives make. Here are some of the basic differences:

First, all credit unions are not-for-profit and operate with a “people helping people” philosophy. They’re known as financial cooperatives, owned by the members who save and borrow there. That’s different than banks, who are owned by stockholders, not their customers. Also, credit unions are governed by members, so you have a say in how things go by voting.

Second—and this impacts your wallet directly—credit unions offer consistently better rates. How can they do that? Even though banks and credit unions offer similar services, in reality banks are for-profit and operate to make profits for stockholders. Credit unions operate to reinvest excess earnings in members directly—by offering lower loan rates, higher savings rates, many free services, and lower service charges.

Maybe you’ve considered joining a credit union, but didn’t know if you could. In 1998, Congress gave credit unions access to more Americans. Today, the community you live or work in, the church or school you attend, the company you work for, or many other “common bonds,” determine your credit union membership eligibility.

The biggest concern many consumers have is the hassle of moving your account. But with credit unions, there’s no need to worry. Many have free switch programs to walk you through the process and some will even do it for you.

Further demonstrating the “people helping people” philosophy, credit unions are deeply committed to financial education. Many credit unions hold free workshops for everyone—member or not—on a wide range of topics, from simple budgeting to buying a home. Some credit unions also employ certified financial counselors to advise members on wealth building and debt management—and it’s free.

To address the need for financial literacy among youth, and the mandate requiring financial education in all public high schools by 2010, Ohio’s credit unions launched the MoneyAndStuff initiative. The web site provides parents and educators with financial lessons, curricula, educational games, and tips to help create a brighter financial future for kids at home and in the classroom. The free site is available at www.moneyandstuff.info.

Ready to do something different with your money and join? Check with your employer to see if you have a credit union already. All of the largest employers in Central Ohio have one, and a lot of medium and small businesses do too. Or to find a credit union, visit www.findacreditunion.com.

If you’re interested in wealth building, managing debt or getting your finances in order, Credit Union of Ohio offers free educational workshops to everyone. Call them at 614.487.6650 (toll-free 800.443.5698) or visit them online at www.cuofohio.org for more information.