I have been a member of a credit union over sixteen years now. I’ll admit that when I chose our current financial institution, I didn’t have any idea why you should choose a credit union. Today we’ll explore some myths about credit unions and the benefits credit unions offer. This post has been update for 2022.
Summer Savings Challenge Part 1: Creating a Budget
Summer Savings Challenge Part 3: How to Start Saving Money
Over the past several years, our financial needs have changed. We’ve purchased two homes and several cars. We’ve opened several savings accounts and planned for our future. Throughout that time I’ve never once regretted our decision to choose a credit union, and in fact, I’ve come to affirm my affection for credit unions over and over again.
Do I think you should join a credit union? I absolutely do. But first, let’s break down the misconceptions you might already be carrying around about credit unions.
Credit Union Myth: Credit Unions are only for a select few groups of people.
While it is true that each credit union has a charter that dictates the population it can serve. It is also true that there are credit unions for a number of different populations! For example, American First Credit Union requires simply that you live, work, or worship in Orange County and surrounding cities
A simple Google search will turn up credit unions in your area and we firmly believe that everyone should be trying to join a credit union.
Credit Union Myth: A credit union can’t offer me everything that my bank can.
Credit unions are full-service financial institutions. You’ll find better customer service, lower fees, and often more competitive rates than other banks.
Basically, it comes down to this: credit unions are nonprofit organizations while banks are for-profit. Banks are beholden to their shareholders, where credit unions are not. In a credit union, the members are the shareholders, and the members benefit in the form of better rates and lower fees.
Okay, But My Bank is Fine
Maybe your bank is just that – fine. Most people take a set-it-and-forget-it approach to their finances and believe me, I understand that.
However, you’ll recall that as part this Summer Savings Series, we’re encouraging you to get to know your finances. Is it possible that your current financial institution is fine, but could be better? Are you paying fees, simply to have a place to keep your money?
Next Steps
How far did you get on last week’s assignment?
As a refresher, we encouraged you to look at your spending for the last 6-12 months and create a monthly budget based on your current spending. We’re not asking you to make any changes to your finances at this point, we’re just getting familiar with the numbers. Where do your dollars go every month?
Today, we want you to take that same critical eye to your current financial institution.
- Do a quick Google search to see if there is a credit union in your area that would work for you.
- Are you already banking with a credit union? Great! Look and see if there are additional services that you could be taking advantage of.
We would love to hear about the changes that you’re making throughout this Summer Savings Series.
Talk Summer Budgeting with Us
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