New Como Credit Union makes a ‘contribution’ to students’ financial education

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By DEBORAH BROTZ

Like many young people in high school, Kyle Kottke, who is a senior at Como Park Senior High School, wasn’t learning anything about finance until just last month.

On Oct. 16, 2012, St. Paul Public Schools, along with Como Park Senior High School and St. Paul Federal Credit Union, celebrated the grand opening of its “Cougar Branch” Credit Union. Kottke is one of three students who work as tellers when the Credit Union is open from 10 a.m.- 12:30 p.m. each school day.

The partnership provides a hands-on financial literacy education, along with real work experience for students. This is the second high school branch of a credit union in Minnesota. Just to be clear, however, the Credit Union is open only for students, faculty and staff at Como Park Senior High School.

Kottke, 17, is being trained to be a teller just like at a regular credit union or bank.

“I’m learning how to cash checks, use computer software, and count cash in large amounts,” he said. “I work about five hours a week. Each teller has a one-hour shift during the day. One person opens, one person works mid-shift, and one person closes.”

Because Kottke was in his school’s Academy of Finance, a group at school for students interested in getting into the business world, he started working at the credit union.

“I found out about it from my teacher there, Gail Rosenow, who is in charge of the Academy of Finance,” he said. “That’s how I got interested in the Credit Union.”

Kottke believes it’s good experience to be working in a professional environment.

“I’m learning more about the financial industry,” he said. “I’m seeing what goes on behind the scenes at a bank. I’m learning how to manage my own money through a checking or savings account. I’m putting my own money into the Credit Union.”

Before the “Cougar Branch” opened, Kottke didn’t know much about finance.

“I would go to a bank and drop off money,” he said. “I didn’t know about interest rates and what the different accounts mean. I didn’t know what checking account is better when you try to save money.”

Kottke hopes by working at the Credit Union he will learn more about money in general.

“I want to learn a lot about building credit that will be with you for college,” he said. “I’m saving for college in different accounts so when I’m out of college, I will not have to take out as many loans. Kids nowadays have to pay back thousands and thousands of dollars. I have a savings account with the Credit Union and one at TCF, too. The one at TCF I spend on gas and that kind of stuff. The one with the “Cougar” Credit Union I try not to take any money out.”

Learning about finance is important to Kottke.

“It will be with you your whole life,” he said. “People with bad credit opening 18 Visa accounts don’t realize it can hurt you later in life. You should have one credit card and pay on it. This can help you get a car, house, or cabin, if you want.”

For Kottke, the Credit Union has changed his views on what he wants to get into for a career.

“I want to get into something more business-oriented,” he said. “I’m getting more real world experience at a much younger age.”

Como Park Senior High School Principal Dan Mesick says having the Credit Union at Como benefits all students, especially the ones working as tellers.

“They get paid some money,” he said. “It’s a much better paying job than most teen-agers get. They get more information about financial literacy. The Credit Union helps change the mindset of students about graduating from high school. They see something right in the building where they can work at a credit union. This changes the way kids think about school and the future.”

Changes in the last 10 years have made teaching high school students about financial literacy necessary.

“The whole economic turndown of five years ago is making people think twice about savings,” he said. “Adults understand about making money safe. Kids need a way to learn about this.”

It’s important for students to learn about financial matters.

“When they become adults, they have a lot of opportunities to get credit cards and take out student loans—anything you do as an adult involving money,” said Mesick. “Finance is not part of a math class. A financial literacy person helps young people prepare for what’s out there. It’s not necessarily intuitive about how interest and late fees work. Credit card companies want to get them hooked on using credit cards. Students get stuck with all this debt and don’t know how to get out from under it. They get in debt because they do not know how to manage money.”

Trevor Malone, youth education coordinator of the “Cougar Branch,” says the St. Paul Federal Credit Union has wanted to spread financial literacy among students for awhile.

“We want to explain why it’s important to save money at a young age,” he said. “We wanted them to know about building credit and keeping credit high. Credit is important for getting credit cards, loans, mortgages, and getting a job. It’s important for you your whole life.”

Malone hopes students will learn from other students.

“We have three students working here who are spreading good habits,” he said. “Learning from another student’s perspective, a student who is their own age, makes them interpret the information more clearly. It makes a great impression on them when it comes from another student.”

In today’s world, it’s important to learn about financial literacy, especially at a young age.

“One in seven students has financial debt at the U of M,” said Malone. “A lot of kids don’t know how to manage money. Affording college is difficult for them. Coming out of college, they’re too far in debt to catch up.”

Malone recommends students put half of their paycheck in savings.

“It’s always good to put some money away,” he said. “Put half of your paycheck in savings and spend half.”

Mesick looks forward to having more students participate in the Credit Union throughout the year.

“I hope that they remain a good partner with us and a resource for students to learn about financial literacy,” he said.

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