Pay it forward

There’s been a steady increase in student-run credit unions in Syracuse high schools, helping more students learn to better save money.

Cooperative Federal, a nonprofit cooperative credit union, has been working to establish these credit unions in high schools to teach students to save and manage money. Its first in Syracuse opened in 2009 at Fowler High School, with a second at Henninger High School in 2013 and the most recent in Nottingham High School last month.

“We want kids to think of savings like any other healthy habit, like brushing your teeth or eating your fruits and vegetables,” Cooperative Federal executive assistant Rachel Greene said. “It’s just a good habit to save a little of your money.”

Ten to 20 students comprise the student-run credit unions, usually open once a week during lunch or class periods. Students can visit them to create accounts, cash checks and deposit funds.

Ed Blasland, a business teacher who taught at Fowler and Henninger while the credit unions were being set up, said one of the biggest benefits is a student being able to start building savings in a safer, less risky setting.

“They’re dealing with people that they know, and handing their money over to people that they know, to get that all started,” Blasland said.

Much motivation for the idea was that financial literacy isn’t a major part of many school curriculums. The American Savings Education Council reported in 1999 that 94 percent of students in Syracuse rely on parents for financial knowledge, not the school. But high stress and poverty often prevent parents from being able to give their kids knowledge about managing finances.

“Something that kind of jumped out, I think, is that in elementary school you learn to write a check but you don’t learn about saving your money,” Greene said.

Cooperative Federal also provides several development services for the public, such as housing counseling. Thom Dellwo, a financial education coordinator at Cooperative Federal, said these credit unions were a good way to extend their services to students and help with their financial education and skills.

“It’s all about helping students understand that human beings are not that great at savings,” he said. “It’s not something we talk a lot about, and it’s not something that we really teach.”

Cooperative Federal first pitched the student-run credit unions in 2009 in school areas with the highest poverty rates in Syracuse. With the worst economic conditions, Fowler High School took the most interest, setting up the first credit union.

There have been several obstacles in setup. A major one has been the simple issue of space. A counter and several cameras for security are needed, and this requires great coordination and work with the school. Another has been that students are often initially resistant and don’t trust others with their money.

“A lot of students still feel that way,” Blasland said. “‘I don't want to give you my money. How do I know it’s coming back to me?’“

Dellwo, however, has said that widespread support from school staffs has helped overcome these difficulties.

“Everyone from the custodian to the principal at each school has bent over backwards to try to help us get started,” he said.

Susan Aloi, a business teacher at Fowler High School, said student reception improved once students knew the benefits, such as cashing and saving paychecks.

“They understand that this is their credit union,” she said. “It’s not even so much a job, it’s a real kind of living in the world.”

Aloi hopes that the role of these student-run credit unions expands, to offering more services like giving small loans to students. She also hopes they continue to help students build hands-on career skills, and lead to more classes on finance.

“That’s why we’ve put them into the schools, to increase that educational piece,” Blasland said. “So that there’s a connection in the classrooms with our credit unions.”

Dellwo said they might bring credit unions to elementary schools later on, saying Edward Smith Elementary School’s credit union is what led to more involvement and awareness in Nottingham High School. However, Cooperative Federal’s current focus is on strengthening their three ongoing credit unions before moving anywhere new.

“We’ve made a commitment to these schools,” he said, “so we’re not going anywhere.”