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How the FamZoo Virtual Family Credit Union Works | by FamZoo
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How the FamZoo Virtual Family Credit Union Works

Parents run their own private online “credit union” for their kids. The accounts in this credit union aren’t real financial instruments — they’re “virtual accounts.” A virtual account balance simply represents how much the parent “owes” the child at any given time. From the child’s perspective, a virtual account is still very real.

 

The parents are the virtual credit union managers. They credit accounts for deposits, chores, odd jobs, allowance, gifts, interest, etc. Most of these credits are automated after a one-time setup. Parents hold on to the real money for safekeeping while kids make goals and save. Parents debit accounts after purchases, donations, or withdrawals.

 

The kids are the virtual credit union members. They learn to spend, save, and give wisely through regular hands-on practice. Kids collaborate with their parents in a private, friendly, educational environment and learn from their mistakes without doing any serious real-world financial damage.

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Uploaded on December 27, 2011