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Climate change Parenting

Fight climate change, put your kid’s allowance at a credit union

I received this piece of mail from Chase and it reminded me to finish this blog post, which I started on Earth Day 2021:

Devious mail from the world’s dirtiest bank


It’s well-established that one of the best ways to fight climate change is by divesting from the big banks that fund fossil fuel projects. HEATED’s list of “How to Move Beyond Recycling” includes “Divest your personal assets from fossil fuels.” The more money you can move away from them, the better, though every account closure is important. Moving money can be tedious, though, since you need to redo all your bill payment information and do lots of paperwork like an adult.

What you can start and finish in a single afternoon is to get your child off to a good start by opening an account for them at a credit union or other institution that does not fund fossil fuel projects. (The HEATED link above has info about how to find one for you, a credit union near you is a good bet.) Then inertia will be on the side of good: the more banking they do at their first institution, the more likely it is that their future earnings will not be used to finance fossil fuel projects that will make their world more ghastly and unsafe. Big banks are wise to how powerful this move is; that’s why they sent me that mailer, hoping to get their hooks into my kids.

I got that mail because I used to bank at Chase and haven’t yet closed my account. JP Morgan Chase is “by far the worst banker of fossil fuels and fossil fuel expansion” (Forbes concurs). I’ve been moving my money away from Chase for years now. In my case, I’ve moved my checking and savings to Lake Trust Credit Union. I’ve also given up my Capital One rewards card for a Lake Trust credit card, and when I refinanced my mortgage I moved from a private bank to Mortgage Center, which is owned by credit unions including Lake Trust.

Lake Trust does not have investors, it does not make a profit, and it does not fund fossil fuel infrastructure (in response to my inquiry, they replied, “The Lake Trust investment portfolio does not hold any corporate bonds in fossil fuel companies.”)

Doing all of that paperwork and changing all of my billing information has been tedious and slow. I got the idea to change banks during Occupy Wall Street, which began ten years ago this month, and I still need to finish closing my mostly-unused Chase and Capital One accounts.

But opening accounts for my kids at my local credit union? Easy. The kids biked over there, poured a bunch of change into the coin counting machine, and were given stickers and hot chocolate. Now I manage their allowances and purchases through transfers in the Lake Trust app. This was much easier than moving my own money has been, and climate-wise should be a great return on my time.

Open an account for your kid at a credit union now, even if you haven’t moved your own money over yet. That will put inertia on the side of good, while also normalizing for them that they should belong to a credit union. And if you need to open an account for yourself to do so? Bonus! You’ve taken the first step on your own longer but important journey.

(Standard disclaimer that individual actions will not solve the climate crisis on their own, we need systemic change, etc. – of course. This is part of a mass divestment movement and this blog post, my action, and your action are all part of that.)