Cure Ireland's debt disease -- teach our children to save
Operating the school Credit Union in St Leo's College, Carlow, are Tessa Roach, Marion O'Toole (of Carlow Credit Union) Kate Cullinane, Ally Nolan, Martina Lawlor and Michelle Taylor
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On a Wednesday morning in the canteen at St Leo's College students queue up to lodge money in their school credit union.
A laptop containing details of student accounts is set up at a counter as pupils deposit their cash in small amounts.
They cannot borrow money or run up overdrafts, but they are being taught how to save. Perhaps it is a skill that we should learn before the next boom and bust.
The school branch of the credit union is run by students themselves at the all-girls school. Members have their own little deposit books -- volunteers act as tellers.
The volunteer officers are helped by an official from the local credit union in Carlow
Principal Clare Ryan is keen to encourage a strong savings culture within the school. Pupils squirrel away cash for all big events -- school trips, debs dances and even for going to college.
Marion O'Toole, Youth Officer with Carlow Credit Union, says: "The importance of providing financial education to young people can not be overstated.
"The school credit union plays a crucial role in helping young people to manage their money and to develop a healthy attitude towards their finances.
"Given the levels of personal debt in Ireland, it is crucial that we assist and advise young people about this early on."
The principal is keen to have the credit union in the school because of its community-based approach.
"The credit union helps to solidify the community. We have students from many different backgrounds. This encourages healthy spending habits.''
The students may only be dropping in 50 cent or a euro each time they lodge money, but the branch is hugely popular at the school with over 400 members. There are believed to be over 50 school credit unions in the country.
There are similar schemes to set up bank branches in schools through programmes such as the AIB Build a Bank Challenge.
But some teachers have reservations about banks coming into schools to teach pupils "sound money management skills'' given their recent history of corporate indebtedness. So, the credit union is an alternative option.
Clare Ryan says she welcomed the introduction of a credit union at her school eight years ago.
"I believe that it is very important in the present environment to give students a sense of financial responsibility.
"Our students are keen to take control over their finances and it helps that they can save during school hours. It gets them into the habit of saving, no matter how small the amount is, and this is so important for their future."
Each year, a number of students are selected to set up and run the credit union in school.
Those who are good with numbers look after the accounts and money handling, pupils with an interest in marketing work on the promotion of the credit union. Even would-be artists can work on the design of posters and flyers.
As well as encouraging students across the school population to save, the credit union enables its administrators to learn practical skills. Many of the officers are studying money-related subjects such as business and economics.
Tessa Roche, a Transition Year student, says: "It is like having weekly work experience in the school.
"We set it up during breaktime and do it on a rota. I study business subjects. So, I find that it is a great help. I hope to become an accountant.''
Members of the credit union are eligible to apply for an annual educational bursary, which goes towards paying for third level expenses. The total amount paid is €4,500 over three years.
The credit union has a raffle among eligible college goers in order to select the winner.
Marion O'Toole says: "The credit union has noticed a significant increase in enquiries for the annual bursary as parents and pupils find it more and more difficult to fund third level education.''
"The whole attitude to money has changed dramatically over the past couple of years. During the boom people were borrowing money even when they did not need it. Now people are realising they have to save.''
Irish Independent
