How to Explain the Credit Union System of Saving & Borrowing to Children

Visit your credit union with your child to reinforce your financial explanations.

Even children in their formative years benefit from learning lessons about how financial systems work. If you're particularly keen to explain the workings of a credit union, start the process by making clear how a credit union differs from a bank. Banks are owned and operated by a board of directors and they're in the of making a profit. Credit unions, on the other hand, exist to serve the financial needs of their members, which is why a saver must be a member in order to deposit and borrow funds.