Where Should I do My Banking?
How many times have you asked yourself this very question? Banking institutions around the world attempt to lure us with their gimmicks and novelty bonuses; however, the question about how the banking process works and what consequences our personal choices have in that matter are never addressed.
Few of us can understand how important that decision really is. And how who we choose to bank with has a direct impact on the world around us.
Credit Unions vs Banks
If you Google this exact question, you’ll find all kinds of posts that give varying detail about the fundamental differences between banks and credit unions. Like, credit unions are “not for profit organizations” and divide earnings among their customers rather than shareholders. Whereas banks are “for profit” and seek to earn money for their shareholders.
Currently, big banks are way larger and credit unions have a much smaller overall revenue pool to draw from. They also limit access to people connected to the community in which they reside in one way or another.
The biggest differences (for anyone who has a social conscience) are never spoken of publicly. By either the banks or the credit unions.
When you deposit your money with a bank they become the legal owners of it and can do with it pretty much anything they want. Including investing in military deals or environmentally destructive operations, anything that makes money.
By depositing money in a bank you give license to a massive institution. One whose only goal is to make profit without the slightest concern over how that is accomplished. Credit unions must invest in the local community and are rigorously overseen as to how and why investments are applied.
Banks Give Loans to Create Money
Banks ‘type’ money into existence, whereas credit unions can only use the currency that they have. It is estimated that over 90% of our currency in circulation is a result of this practice.
Banks contribute to inflation, inflation is caused by increasing the money (currency) supply. The very act of getting a loan from a bank contributes to the weakening of our dollar. So every time you take out a student loan, a mortgage or make a purchase with a credit card you are permitting a bank to create that currency.
Check out this Ted Talk by Simon Dixon explaining the differences between banks and credit unions.
Obviously, there’s a much larger picture to consider. Hopefully this have given you something to think about.
Even the smallest act can have a profound impact and if we do nothing else, avoiding empowering banks is probably a worthwhile thing to consider.
The history of money is a very interesting topic. It’s important to keep ourselves educated and make choices with solutions in mind.
This post is intended to spark interest on the topic and for the reader to be inspired to investigate further.