For high school and young college students, the world of banking is often a scary, overwhelming place. Many young people do not know where to turn, and they often end up making costly mistakes either because they don't seek sound financial advice or because they ignore their parents' well-meaning money tips (ugh, parents).
Enter credit unions. Whether parents are members or not, the advantages of a young person joining such an institution are many. Here are just a few notable benefits.
1. Young people have the chance to learn about financial responsibility in a low-risk environment.
National banks sometimes have an unfortunate reputation of preying on the financially ignorant. Many of us cannot look back on our own financial history without blushing a bit about our choices and the resulting debt we accrued while using our very first card. However, these unions offer simple solutions to these problems like low-limit credit lines that reduce the risk of young people taking on large amounts of debt too soon. Many institutions offer student incentives and packages as well. For example, high school students can often join youth advisory boards, earn scholarships through their participation, and are usually eligible to open high-interest savings accounts specifically designed to help young people learn about the rewards of responsible saving.
2. Access to credit unions is not as limited as it may seem.
Students are often hesitant to join a financial establishment based in their hometown or college city because they are afraid of what will happen when they move away. However, most credit unions offer online banking, which means that members will always have access to their account via computer or smartphone. However, online banking is just one of the obvious perks. Many of these unions are also members of an ATM co-op program, which means young people will continue to have access to their account and money across the country at various ATMs - access to which is free of surcharges and other related fees, no less.
3. When federal student loans fall short, credit unions can make up the difference.
Of course, the first place students should look when it comes to financing their educations is federal student aid, but what should young people do when this aid is not enough? Many students mistakenly fall for high-interest loans that haunt them for many, many years. However, credit unions offer a surprisingly affordable alternative. Born out of a similar cooperative spirit that resulted in easy ATM access, many unions have banded together to create affordable, low-interest private student loan options that are not only easy to understand but reasonable to pay back.
In essence, these humble cooperative institutions offer many useful tools for the new high school or college student. If you're in the market for an easy, accessible banking system you can trust, credit unions might be worth another look.
When seeking more information on credit unions in Grand Rapids, MI, residents can learn more by visiting http://www.communitywestcu.org/contact_about.html.
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