March 1st, 2010

Move your money a community based initiative.  Students at American University in Washington DC have created a movement called “move your money.”  With the credit market partially frozen, and access to lending funds hard to come by – such a movement may be a blessing to many small businesses and communities.

The basic premise of the movement is to have individuals move their accounts from large banks to smaller credit unions and local financial institutions.  These types of places typically reinvest in communities, allowing for small business growth and overall improvement of social conditions.

Is “move your money” a good idea?  Many think it sounds great, as people are frustrated with large corporate banks and their fee structures and bailout funds.  Those who started the movement cite the biggest six financial institutions as “casino style” and note how their toxic behavior has affected many communities.

On the other hand, a run on the big banks will put us back on the same path we were on before.  The big banks that haven’t repaid TARP funds would be unable to do so, as the run on their deposits would put them in a bad situation.  In addition, some larger banks that don’t fall in the top 6 corporate banks offer better rates than smaller credit unions and local banks.

What each individual does with his or her own money is their own choice.  The Move your Money initiative is great for those who want to focus on giving back to their communities.  However, it may not be a good idea for every family or individual.  It’s best to look at every angle of a decision and see what’s best for your personal situation, and then act accordingly.

Source:

Move your Money Official Web site

TheFourthBranch.com

Photo Credit: Morguefile.com free photo

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