Credit
unions are not-for-profit financial cooperatives that provide savings, credit
and other financial services to their members. It is owned and managed by its members.
The main objective of Credit union is to provide a secure and convenient place
where members can save their money and where loans are available at reasonable
prices.
The major difference between a credit union and a bank is that a bank
is for-profit organization whereas a credit union is a not-for-profit
organization. Therefore it provides better rates of loans for the benefit of
people. Everyone can benefit from a credit union. Kids are also not an
exception for being a beneficiary of the credit union services. There various
benefits of credit union such as:
- Non-profit Status
In credit
union no stockholders are looking at the return on their investment
- Inclusiveness
Credit
unions have gained so much good reputation allowing spouses, siblings, and
children of members to join.
- Owned by Members
The members
of credit union are the owners. This means they are not working for profit but
for public good.
- Personal
attention
As credit
unions are smaller than banks therefore personal attention is provided to every
member.
Saving money
is an excellent habit and everyone should try to save money. Nowadays, parents
want their kids to save money so that kids have the habit of saving money.
Credit unions are the best option for kids to save their money by opening an
account and keeping it in a safe place. There are many reasons for why kids
should choose credit unions and these are mentioned below:
- No Account Keeping Fees
Most banks
have fees for account keeping but credit unions have no account keeping fees
which is a great advantage especially for kids.
- No Transaction Fees
Credit
unions don’t charge for any transactions.
- No Minimum Opening Balance
As banks
require some minimum opening balance so it’s difficult for kids to open an
account in banks therein credit unions serve the purpose well.
- Ability to Perform Direct Debits and Credits
It is also
an advantage for kids that they can easily debit from or credit to their
account as and when required.
Photo Credit: https://www.tasmantaxrefunds.co.nz/services/family/
Photo Credit: https://www.tasmantaxrefunds.co.nz/services/family/
Photo Credit: http://www.thai2aus.com.au/2012-08-04-12-05-16.html
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