ST. PAUL, MN (March 13, 2014) -- In recent years, student-run credit unions have begun emerging in high schools throughout Minnesota. Beginning with Owatonna High School in February of 2011, five in-school branches have opened thanks to the efforts of HomeTown Credit Union, St. Paul Federal Credit Union, Postal Credit Union, and Cook Area Credit Union.
In May of 2013, a revision of the Minnesota K-12 Academic Standards in Social Studies was released, which includes new educational requirements for personal finance.
Understanding the many partnerships that exist between credit unions and schools, and recognizing the opportunities that exist for credit unions to help teachers comply with the new education standards, the Minnesota Credit Union Foundation spoke at the Great Lakes Social Studies Conference on March 3. Hosted by the Minnesota Council on Social Studies, the conference is a professional development opportunity for Minnesota social studies teachers of all grade levels.
Kristina Wright, Executive Director of the Minnesota Credit Union Foundation, presented a breakout session on the “Educational Benefits of Student-Run Credit Unions.” The session provided an introductory overview to student-run credit unions and included a variety of resources and information on operational models, considerations and benefits of these partnerships.
Richard M. Todd, Vice President – Community Development Federal Reserve Bank of Minneapolis, also provided background information on the history of in-school savings programs.
“Minnesota credit unions large and small have a commitment to financial education, and no two credit unions’ efforts are exactly alike,” Wright said, encouraging school partnerships that start small – such as a guest speaking opportunity or other events or exchanges. “The dedication by our credit unions that have established these first five in-school branches is spectacular, and it’s a concept that I hope to see more of in the coming years.”
The Foundation’s Social Studies Conference presentation also included perspectives from two educators who have been instrumental in the formation of their schools’ student run credit unions, Scott Pierce of Owatonna High School and Craig Spreiter of Tartan High School. Each provided videos that highlighted their perspectives and experiences, and discussed why they chose to open a student-run branch.
“We felt that it would be a great tool to help students learn about financial literacy, and we could also incorporate it into classes,” Pierce said, noting how elements of the credit union branch have permeated personal finance and marketing classes, as well as DECA Club projects and research. “The students that work at the credit union gain great experience, and the other students benefit as well through peer education and in dealing with other students.”
Pierce said that the HomeTown Credit Union branch at Owatonna High School already has more transactions and traffic than he thought it would at this point, which just passed the three-year mark. He speculated that students feel more comfortable interacting with their peers, and that it may not be as intimidating for them to ask questions.
Marc Buchmayer, student worker at Tartan High School’s branch of Postal Credit Union, agreed with the value of peer interaction and financial education.
“My experience [working with Postal Credit Union] has been a great one,” Buchmayer said. “I’ve had a lot of opportunities presented to me, especially through the student branch working with my peers and coworkers, to learn for myself more about the financial world as well as teach my peers.”
The Foundation continues to encourage credit unions to expand their efforts to provide personal finance education to students. According to the Minnesota K-12 Academic Standards in Social Studies, the new requirements include fundamental concepts of economics and personal finance, such as:
- Distinguishing between wants and needs, and understanding income and expenses
- Creating a budget, establishing savings goals, and tracking success
- Evaluating investment options using criteria such as risk, return, liquidity and time horizon
- Understanding the benefits and costs of credit and how it impacts an individual’s ability to borrow, rent, get a job and achieve other financial goals.
The Minnesota Credit Union Foundation website has resources available for credit unions. Credit unions interested in learning more about Student Run Credit Unions can visit http://mncufoundation.org/financial-education/student for a handbook and informational webinar. Information on the Minnesota Social Studies Standards page at http://mncufoundation.org/standards includes an overview of the May 2013 standards and links to the Department of Education.
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