Dinero Teens: Why Dividends Are Your Financial BFF!
As you grow older and start earning more money, it’s important to think about where and how to save.


As you grow older and start earning more money, it’s important to think about where and how to save. While keeping your money in your wallet or a jar might seem convenient, a better option is to deposit your money into a savings account at a credit union.
Credit unions are different from traditional banks because they don’t focus on making big profits. Instead, they share some of their earnings back with their members—that includes you when you open an account!
When you deposit money into a savings account at a credit union, you’re not just saving; you’re becoming a part-owner of the credit union. Credit unions use members’ deposits to fund loans for other members to buy things like houses and cars. They earn money from the interest on these loans and share a portion of that profit with their members as dividends.
Dividends are similar to the interest banks pay, but the big difference is that credit unions usually offer higher dividends because they’re not trying to maximize profits for shareholders.
Here’s an example:
If you deposit $200 in your savings account, and the credit union pays a 1% annual dividend rate, you’ll earn $2 at the end of the year—just for keeping your money there! The more money you save and the higher the dividend rate, the faster your savings will grow.
Another great thing about credit unions is that they’re safe. They’re insured by the National Credit Union Administration (NCUA), so your money is protected.
By saving with a credit union, you’re not only making a smart financial decision for yourself but also helping other members of your community. As a member, your money works to support others while also earning you extra income through dividends. It’s a win-win!