*Drum Roll Please* And now, the moment you have all been waiting for: What did I do with my money after I removed it from the clutches of Bank of America???
You Guessed it! I joined a credit union!
Why a credit union? How is that different from your run-of-the mill bank? Unlike a bank, which operates in order to turn a profit for its shareholders, a credit union is a not-for-profit financial institute that is members-owned. Anyone who has an account is considered a member. This means that, to a credit union, I am a member-owner and not a customer. The goal of the credit union is not to increase the products I buy or sign up for; the goal is to improve my financial situation. To that end, credit unions offer the same services as standard banks. The difference is really the objective.
Also, when you open an account at a major bank, the bank uses your money for its own investments. The money heads to a corporate headquarters where it is used to benefit something so far removed from your life that you are likely to never see/feel its effects. On the other hand, a credit union endeavors to benefit the local economy and its members. Your money is invested in community projects and plays a key role in maintaining the vitality of your own community. For example, the credit union I joined sponsors a local stage company and runs a scholarship program for local students. In short, Credit unions operate for community and member improvement rather than for profit. So, your money is doing good even when you aren't using it. That's what I did today! And, it feels good!
YESTERDAY, we took a road trip home from visiting family (We got back late. Sorry I didn't post. :-/). To foster world betterment, we made it a point to be patrons of local businesses rather chains. Have you ever noticed that all towns seem the same as you travel down the highway? They all seem to be clusters of McDonalds, BP, Burger Kings, TA, and maybe a Walmart. Some sects have termed this phenomenon the "McDonaldization" of America. Mere decades ago, travelers automatically helped local economies merely because travelers needed to eat and had no choice save to find a locally owned diner or drugstore. Unfortunately, the interstates moved in after the mom&pop establishments, and chains put themselves on the interstates. In this way, McDonald's, Burger King, Arby's, Taco Bell, etc...have been able to claim prime business locations and snag the patronage that travelers used to take to small, local businesses. More than that, these places also take local patrons from local business. This is why we see local businesses slowly closing their doors and small towns morphing into clones of each other.
Why is this a problem?
True, chains have their place in our world. Sometimes you just need a 30sec hamburger. However, as with major banks, chains shuffle money out of local economies and into the hands of distant corporations and shareholders. Local businesses,on the other hand, maintain the vitality, viability, and uniqueness of communities and, in turn, of the country. Plus, when you buy from a local business you can see and meet the people that your business is benefiting. You can cut out the middle man!
I'll admit that, occasionally, products are slightly more expensive than those of chains. However, the difference is usually not very noticeable. What's more, a deal for you tends to be a rip-off for someone else. "How?" you ask. I'll tell you in a different post. This one is getting too long, and I'm sure I'm about 2 sentences from losing your attention...if I haven't lost it already!
Let me leave you with 2 things to remember should you want to go to local businesses on a road trip:
1) Plan to eat before 9 pm. Most local businesses close early. We learned this the hard way when we stopped for dinner...
2) Start looking for a place to eat before you are famished because mom&pop's are harder to find than chains.
I just wanted to say thanks so much for promoting local business. I think that people are aware that it would be better for the economy (and general well-being) to shop local but they find it inconvenient. I don't know if you've heard about the 3/50 Project [www.the350project.net] but they talk about how spending $50/ month at 3 local stores can save your local economy. It's a really neat project, and worth checking out!
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