Financial Education Across the Credit Union Movement

Friday 10 May 2024

Training and education is one of the core co-operative principles. For credit unions, financial education is a cornerstone of their mission to build financial resilience in their members and the communities they serve.

In a story by Co-op News, the publication tells examples of credit unions leading innovative financial education initiatives to enhance people’s understanding, capabilities and confidence when it comes to finances.

Just Credit Union works with schools to promote financial education across Shrewsbury. Sessions include money management, enterprise and awareness of predatory lending practices.

Through its Grow a Pound initiative, Just gives students the opportunity to use their skills and talents to generate money for the school, through activities such as bake sales, cleaning cars, origami and second-hand book selling. During the most recent Grow a Pound challenge, pupils at Wilfred Owen Primary school turned an initial £200 into £1,200 through their efforts.

The school was also visited by Sid the Shark, a mascot promoting awareness of predatory lending, in partnership with the Illegal Money Lending Team’s Stop Loan Sharks campaign.

Steve Barras, Development Officer at JCU, says financial education is “core to do what we do. It’s what we’re about. Our purpose is not to lend money, our purpose is to give people control of their finances.

“This is something that has become a priority for more people in recent years, with the pandemic and cost of living crisis prompting a need for many to put a sharper focus on their finances.

“More people are now more aware of the need to manage their money,” he adds, “and therefore are more open than they perhaps were two or three years ago. We talk about maximising your income, so we have a benefits calculator on our website so people can go in and see what benefits they would qualify for, and then how to apply for those benefits.

“We also talk about taking a proper look at your bank statements and your credit card statements and what is on there … it seems like through the pandemic, people took out an awful lot of product subscriptions. If you encourage them, people will go back and figure out which ones they no longer need, and also shop around for the best deals.”

Commenting on the sector’s impact on younger generations lives from an early age, ABCUL CEO, Robert Kelly said: “Credit unions are providing financial resilience and empowering communities and households up and down the country.

“Once people are convinced of the merits, the value proposition, the products and services of credit unions they will remain loyal for the rest of their lives”.

Full story about the sector’s work worldwide with financial education is available here.