Pentagon Federal Credit Union Offers “Financial Responsibility 101”

Credit Union Magazine
November 27, 2007 | COMMENTS

School's in session at the nation's third-largest federal credit union.

Pentagon Federal Credit Union's "Financial Responsibility 101" offer encourages members with college-bound students to open accounts in preparation for life on campus and beyond.

"For a lot of college students, that first semester is a crash course in financial management,"says Frank Pollack, president/CEO of the $8-billion-asset credit union in Alexandria, Virginia. "Our intention is to give those college students and their families the means to manage their money wisely no matter how far from home they may be."

The Financial Responsibility 101 offer includes:

• A special student checking account with no minimum balance, no direct deposit requirement, overdraft protection, and a freeVisa Check Card
• A Student Visa Platinum Card with a manageable $500 limit to provide funds when they may be needed the most

"Because the checking account is joint with the parents, Mom and Dad can use our online banking to check balances, transfer money, and even view statements," Pollack says. Keeping track of the whole family's finances is more crucial than ever at college time, he notes, when money can be particularly tight. These accounts help educate the student about wise financial management, and they benefit the entire family.

Because Pentagon Federal's membership is spread worldwide, the credit union's comprehensive online banking is designed to allow members access to their money from wherever, whenever, Pollack adds. So it doesn't matter how far—or near—to home college is.

"The low fees and free features of the checking and credit card components of this program are the real teachers," he says. "Educating students to handle money wisely should include showing them that they don't have to pay a lot to get world-class financial services. And a good grounding in prudent money management will make it harder for these students to fall prey to the easy-to-get but high-interest rate credit card offers college students are bombarded with."

This story first appeared at www.creditunionmagazine.com and is reprinted with permission.