Lesson 4: Credit Unions and Choosing a Bank

About 30 minutes — Activity-based lesson

What You Will Learn

This lesson covers:

What a credit union is: member-owned, not-for-profit
How credit unions differ from banks
Things to consider when choosing a bank or credit union
The take-home: interview a parent about their banking

What a credit union is: member-owned, not-for-profit

This section covers the key ideas about what a credit union is: member-owned, not-for-profit. Discuss with your group or family and explore the concepts together.

How credit unions differ from banks

This section covers the key ideas about how credit unions differ from banks. Discuss with your group or family and explore the concepts together.

Things to consider when choosing a bank or credit union

This section covers the key ideas about things to consider when choosing a bank or credit union. Discuss with your group or family and explore the concepts together.

The take-home: interview a parent about their banking

This section covers the key ideas about the take-home: interview a parent about their banking. Discuss with your group or family and explore the concepts together.

Check Your Understanding

1. What is a credit union?

Answer: A credit union is a member-owned financial institution. Unlike banks, which are owned by shareholders seeking profit, credit unions are owned by their members and return profits as better rates and lower fees.

2. How are credit unions different from banks?

Answer: Credit unions are not-for-profit and member-owned. They often offer lower fees, better savings rates, and more personal service. Banks are for-profit and shareholder-owned.

3. What should you consider when choosing where to keep your money?

Answer: Fees, convenience (ATMs, online banking), interest rates, customer service, and whether the institution aligns with your values (like Islamic banking options).

4. Why is it important to understand banking even as a 6th grader?

Answer: Because you will use banking for the rest of your life. Understanding it now helps you make better choices and avoid costly mistakes later.

Key Takeaways

What a credit union is: member-owned, not-for-profit
How credit unions differ from banks
Things to consider when choosing a bank or credit union
The take-home: interview a parent about their banking

Session Complete!

Practice & Quiz

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Practice Activities

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