MY 12-YEAR-old son recently applied for his first loan. Based on the three Cs of credit-character, capacity, and capital-Mom & Pop Credit Union, a family-chartered credit union in Wisconsin, granted the loan. His parents comprise the board of directors, management team, and staff.

Mom & Pop Credit Union prohibited the borrower from dipping into his savings account, designated for long-term goals, to pay for the coveted purchase. Instead, the borrower used existing allowance funds-in line with the Credit Union National Association's (CUNA) Save, Spend, & Share program-and took out a loan for the balance.

The borrower and his father, credit committee co-chair, developed an Excel spreadsheet outlining the payment plan. The signed contract lists a monthly payment of $4.25 (including interest) for 12 months, due on the 15th of the month. The longed-for video game system is surrendered in the absence of a payment.

I'm relaying this story because April 18-24 is National Credit Union Youth Week, an annual event CUNA sponsors to improve youth financial literacy. This year's new National Youth Saving Challenge helps children learn the value of planning and saving money for the future plus credit unions' role in that process (p. 22).

There's still time for you to participate. Visit and select "Youth Education" for information about this and other CUNA initiatives to brighten the financial future for youth.

Copyright Credit Union National Association, Inc. Apr 2004
Provided by ProQuest Information and Learning Company. All rights Reserved

Copyright ©  All Rights Reserved.
Related sites: