Community Youth Assets - Quarles & Brady LLP

As published inMILWAUKEE JOURNAL SENTINELAugust 29, 2003Program Compounds Kids’ Interestin Savings, InvestingCredit-run credit union at Boys & Girls Clubs is sparking similar efforts around country.By Leonard Sykes, Jr.of the Journal Sentinel staffEvery week at the FitzsimondsBoys & Girls Club, 6-year-oldAlvin Gray gets a lesson most inhis neighborhood probably won’tlearn in a lifetime. It’s a hands-onlesson in investments and savings.Alvin is a member of theKeystone Club, the only creditunion in Milwaukee establishedfor children by children, ages 6 to18. The 6-year-old began hisaccount a year ago with a $1deposit. He has since seen itgrow to $18.For Alvin, the compoundedinterest on his investment is nosurprise.Participants in the club – oneof three branches of the GuardianCredit Union that hold depositsfor the Boys & Girls Clubs ofGreater Milwaukee – make manydeposits and very few withdrawals.Accounts pay a generousinterest rate of 5%. Those withthe most consecutive deposits in amonth earn $2. The highestdepositors earn $5.In 1995, the LaVarnway Boys &Girls Club opened its credit union inone of the city’s poorest neighborhoods.It started with one major goal:teaching children the value of savingmoney in an area of town wherebanks and savings and loan institutionsare in short supply. The idea ofsaving, for many of them, was onceforeign.“Years ago, we decided we wantedto move in the direction of finance,”said Sam Williams, LaVarnway’sdirector. “And what better way thanopening up a credit union?“We wanted to teach our childrenthe importance of savings and whatinvestments do.”So far, the credit union – sponsoredby Strong Capital Management– has made a positive impression onits 713 active members about theimportance of investments andsavings. To date, it has accumulatedassets of $15,690. And the idea ofsavings has become gospel to manyof its members, 69% of whom comefrom families with incomes of lessthan $25,000 a year.AT A GLANCE■■■The “Kids FinancialManagement Program” isthe first credit union ofits kind in the nation.Its major goal: to teachchildren the value ofsaving money in an area oftown where banks andsavings and loan institutionsare in short supply.Its success has inspiredother clubs and organizationsacross the country toestablish credit unions runby children.The message has been spreadmainly through the club’s mentor,Donald B. Jackson, who is knownaffectionately as “the chief.”Jackson, who retired in 2000 asan assistant chief with the MilwaukeeFire Department, has been avolunteer at LaVarnway for the last11 years.Jackson and Strong CapitalManagement are the guiding lightsbehind the credit union and thecont’d on p. 2

As published inMILWAUKEE JOURNAL SENTINELAugust 29, 2003Program Compounds InterestPage 2reason the club has become anational model.Strong’s “Kids FinancialManagement Program” is the firstcredit union of its kind in thenation and has since inspired otherclubs and organizations across thecountry to establish credit unionsrun by children, Williams said.Strong founded the Strong KidsFinancial Management Program in1996 and has contributed morethan a quarter-million dollarstoward the club, said companyspokeswoman Stephanie Truog.The program “teaches childrenthe value of investing, and becausethe kids actually manage theprogram themselves, they’re alsogaining valuable work skills andentrepreneurial experience,” Truogsaid.Children in the program act asshareholders and serve on thecredit union’s board of directors.Jackson and Strong employees havehelped the children invest in the stockmarket.Strong also emphasizes the powerof compounding. For example,someone who saves $100 a monthstarting at age 20 will have $48,000at age 38, assuming an 8% annualreturn.But for Jackson, the program has adeeper value.Many of the children he mentors inthe club have become his own.“We’ve had some success,” hesaid. “I’ve got one of my kids inmedical school, one in engineeringschool, two physical therapists goingthrough Marquette, a minister, two inthe military and a podiatrist.“I see kids who want to dosomething, (and) I want to be a partof it.”The program can trumpet othersuccesses. In 1996 it won the Boys& Girls Clubs of America’s highestaward – first place for programexcellence.It also won a $1,000 cash prizefrom Colgate-Palmolive in 1997.When that award was announced,“the kids called a stockholdersmeeting” to decide what to do withthe cash, Williams recalled.“I was standing in the back of theroom and I’m thinking, ‘GreatAmerica, go go-carting.’ I’mthinking maybe they would blow it onpizza or something.“But someone raised their handand said, ‘Let’s invest it in the stockmarket and watch our money grow.’It passed unanimously.“So ask what encourages ourchildren to save, that’s a primeexample of how our children arethinking,” Williams said.©2003, Milwaukee Journal SentinelReprinted with permissionPlease visit our Website at www.quarles.comCHICAGOMADISONMILWAUKEEQuarles & Brady LLP411 East Wisconsin Ave.Suite 2040Milwaukee, Wisconsin53202-4497phone: (414) 277-5000fax: (414) 271-3552NAPLESQuarles & Brady LLP1395 Panther LaneNaples, Florida34109-7874phone: (239) 262-5959fax: (239) 434-4999PHOENIXQuarles & BradyStreich LangOne Renaissance SquareTwo North Central Ave.Phoenix, Arizona85004-2391phone: (602) 229-5200fax: (602) 229-5690TUCSONQuarles & BradyStreich LangOne South Church Ave.Suite 1700Tucson, Arizona85701-1621phone: (520) 770-8700fax: (520) 623-2418Quarles & Brady LLCCiticorp Center500 West Madison St.Suite 3700Chicago, Illinois60661-2511phone: (312) 715-5000fax: (312) 715-5155Quarles & Brady LLPUS Bank PlazaOne South Pinckney St.Madison, Wisconsin53703-2113phone: (608) 251-5000fax: (608) 251-9166 or(608) 251-5139

As published inMILWAUKEE JOURNAL SENTINELThursday, November 25, 1999Laying a FinancialFoundationKids’ credit union is the keystone to teachingabout the value of moneyBy Kathleen Gallagherof the Journal Sentinel staffThe Keystone Credit Unionhas only about $3,000 inassets.But what the 300-memberfinancial institution lacks indollars, it makes up for inyouth vigor.“C’mon man, sign right here,”banker Brian Montgomery saidWednesday to NicholasAshford.Then Montgomery stopped,sizing up his new customer.“You know how to writecursive?” he asked.Montgomery, 14, and Ashford,9, are – like all of Keystone’smembers, officers anddirectors – between the agesof 6 and 21.Keystone, founded inNovember 1995, is one ofthree branches of GuardianCredit Union that serves asboth a learning experience anda place to save money.It’s housed in a room at theLaVarnway branch of the Boys& Girls Clubs of GreaterMilwaukee and is open afterschool on Wednesdayafternoons.“When (the kids) walk inthere, there’s no playing oreating – it’s like, ‘we’re goingto business now,’” said DonaldB. Jackson, retired assistantchief for the Milwaukee FireDepartment and a volunteer atLaVarnway.It’s a serious business, too.“I’ve learned how to be morecareful with money and howto get along with people Iwork with,” said JammieWilliams, who had the goodfortune to arrive at his creditunion job early enough to getthe plumb data entryassignment.The kids do all the work fromdata entry to performing tellerfunctions using a computer,software, office supplies,training and support fromGuardian.The credit union’s youth boarddetermines its operatingpolicies for areas such asstaffing, promotions andsavings incentive awards, anddeclares dividends.“The kids are really verygood,” said Karen K. Bayer,West Allis-based Guardian’shuman resources director whoruns the kids’ credit unionprogram.Guardian has kids’ credit unionbranches at the LaVarnwayand Mary Ryan Boys & GirlsClubs and at WashingtonHigh School.At Keystone, the kids’ draweris almost always balanced andmistakes are rare, Bayer said.Jackson, who’s known asChief, is always there whenthe credit union is open tokeep things running smoothly.continued...

...continuedHe makes sure its five officershave weekly meetings andcount the cash correctly, andurges members who withdrawmoney for treats to replenishtheir accounts.“As published inMILWAUKEE JOURNAL SENTINELThursday, November 25, 1999I always tell them that without good credit,doors can be closed in your face.– Sam Williams,LaVarnway Executive Director““I’m their conscience, too,”Jackson said.Keystone is part of a broaderprogram at the Boys & GirlsClubs intended to teach kidsabout leadership, financialmanagement skills and thepower of saving.“I always tell them thatwithout good credit, doors canbe closed in your face,” saidSam Williams, the LaVarnwayclub’s executive director.The kids on the board andthose who volunteer to workat the credit union takeworkshops on topics such asteam-building, customerservice and branch operations,along with programs about theimportance of saving andinvesting.Guardian kicks in $1 for everykid who opens a Keystoneaccount, sends them monthlystatements and pays a hefty5% dividend on their savings,Bayer said.“The rewarding thing has beenworking with the kids – thesekids are so dedicated andcommitted to the project,”Bayer said.She’s hoping other creditunions discover those rewardsand decide to participate inthe program as it grows.The Boys & Girls Clubs says itwill be able to put creditunions in all five of itsbranches because of amultiyear, six-figure donationfrom Strong CapitalManagement in MenomoneeFalls.The mutual fund companydecided to provide funding forwhat will be known as theStrong Kids FinancialManagement Program becauseit teaches kids aboutentrepreneurship and thepower of money.“Capital is best used to primethe pump of imagination andinvesting,” said Richard S.Strong, Strong’s chairman.©1999, Milwaukee Journal SentinelReprinted with permission.Please visit our Web site at: www.quarles.comCHICAGOQuarles & Brady LLCCiticorp Center500 West Madison St.Suite 3700Chicago, Illinois60661-2511phone: (312) 715-5000fax: (312) 715-5155MADISONQuarles & Brady LLPOne South Pinckney St.Madison, Wisconsin53703-2808phone: (608) 251-5000fax: (608) 251-9166 or(608) 251-5139MILWAUKEEQuarles & Brady LLP411 East Wisconsin Ave.Suite 2040Milwaukee, Wisconsin53202-4497phone: (414) 277-5000fax: (414) 271-3552NAPLESQuarles & Brady LLP4501 Tamiami Trail NorthSuite 300Naples, Florida34103-3060phone: (239) 262-5959fax: (239) 434-4999PHOENIXQuarles & BradyStreich Lang LLPOne Renaissance SquareTwo North Central Ave.Phoenix, Arizona85004-2391phone: (602) 229-5200fax: (602) 229-5690TUCSONQuarles & BradyStreich Lang LLPOne South Church Ave.Suite 1700Tucson, Arizona85701-1621phone: (520) 770-8700fax: (520) 623-2418

As published inMILWAUKEE JOURNAL SENTINELApril 19, 1999Learning How toSave at SchoolShop malls, grocery stores, drugstores, gas stations, etc. havebecome places that offercustomer services at onelocation.A convenient place forfinancial transactions is a veryimportant service for customers.Now at Washington HighSchool, students can combinegoing to school and taking careof their finances since thePurgolder Credit Union openedat WHS.The Purgolder branch ofGuardian Credit Union openedOct. 21 in conjunction with theWashington High VolunteerFair. Currently, the PCU has100 accounts and $5,000 inassets. The projected goal forthis school year is 200 accountsand $7,000 by June.Started as a joint venture ofGuardian Credit Union,Community Youth Assets andWashington High School, themission of the PCU is to helpStudents can combine going to schooland taking care of their finances since thePurgolder Credit Union opened at WHS.more youths establish a practiceof saving money and to have amore direct opportunity tohandle their finances.To open an account, studentsor staff need only $5 and aSocial Security number. Theaccounts pay 5% interest andthe dividends are postedquarterly. The PCU is opendaily during lunch hours andthree nights a week after school.Karen Bayer of GuardianCredit Union and SharlinBowen of Community YouthAssets began planning for thePCU with WHS students inApril 1998. The student boardof directors includes presidentStephanie Thomas, vicepresident LaFredrick Burns,treasurer Terrence Battle-Hunt,promotional director WilliamBlack, secretary April Talbert;and member-at-large QuentinGrant. There are two staffadvisers, Dennis Lypek andYvette Moore.Student response to thePurgolder Credit Union hasbeen great.Latoya Wright, 17, said, “Ithink it gives kids in school theopportunity to learn how tohandle money.”Shanna Jones, 16, said, “ThePurgolder Credit Union is aneasy, convenient place to gowhen you need to quicklywithdraw money.”©1999, THE MILWAUKEE JOURNAL SENTINELReprinted with permission.Please visit our Web site at: www.quarles.comCHICAGOQuarles & Brady LLCCiticorp Center500 West Madison St.Suite 3700Chicago, Illinois60661-2511phone: (312) 715-5000fax: (312) 715-5155MADISONQuarles & Brady LLPOne South Pinckney St.Madison, Wisconsin53703-2808phone: (608) 251-5000fax: (608) 251-9166 or(608) 251-5139MILWAUKEEQuarles & Brady LLP411 East Wisconsin Ave.Suite 2040Milwaukee, Wisconsin53202-4497phone: (414) 277-5000fax: (414) 271-3552NAPLESQuarles & Brady LLP4501 Tamiami Trail NorthSuite 300Naples, Florida34103-3060phone: (239) 262-5959fax: (239) 434-4999PHOENIXQuarles & BradyStreich Lang LLPOne Renaissance SquareTwo North Central Ave.Phoenix, Arizona85004-2391phone: (602) 229-5200fax: (602) 229-5690TUCSONQuarles & BradyStreich Lang LLPOne South Church Ave.Suite 1700Tucson, Arizona85701-1621phone: (520) 770-8700fax: (520) 623-2418

As published inMILWAUKEE JOURNAL SENTINELOctober 4, 1997...continued“One of the basics of selfrelianceis financialindependence,” notes ReggieMoore, who supervises theyoung people runningKeystone and Youth on aMission. Moore is programdirector of Community YouthAssets, a non-profit groupformed by members of theFuture Milwaukee leadershipprogram to give kids hands-onexperience with financialresponsibility.The institutions are open toanyone age 6 to 21 and offer aOne reason poor people aren’t moving upwith everyone else is that they have lackedopportunities to build wealth.variety of saving incentives,including a $50 bonus forrecruiting the most newdepositors in a six-monthperiod.The Keystone program,started two years ago, hasmore than 200 members withtotal assets of about $2,500.That’s an average deposit of$12.50, which doesn’t seemlike much. But it’s a start.Write to Joel Dresangc/o MilwaukeeJournal Sentinel, P. O. Box 371Milwaukee, WI 53201; ormailto:jdresang@onwis.com©1997, Milwaukee Journal SentinelReprinted with permission.Please visit our Web site at: www.quarles.comCHICAGOQuarles & Brady LLCCiticorp Center500 West Madison St.Suite 3700Chicago, Illinois60661-2511phone: (312) 715-5000fax: (312) 715-5155MADISONQuarles & Brady LLPOne South Pinckney St.Madison, Wisconsin53703-2808phone: (608) 251-5000fax: (608) 251-9166 or(608) 251-5139MILWAUKEEQuarles & Brady LLP411 East Wisconsin Ave.Suite 2040Milwaukee, Wisconsin53202-4497phone: (414) 277-5000fax: (414) 271-3552NAPLESQuarles & Brady LLP4501 Tamiami Trail NorthSuite 300Naples, Florida34103-3060phone: (239) 262-5959fax: (239) 434-4999PHOENIXQuarles & BradyStreich Lang LLPOne Renaissance SquareTwo North Central Ave.Phoenix, Arizona85004-2391phone: (602) 229-5200fax: (602) 229-5690TUCSONQuarles & BradyStreich Lang LLPOne South Church Ave.Suite 1700Tucson, Arizona85701-1621phone: (520) 770-8700fax: (520) 623-2418

As published inMILWAUKEE JOURNAL SENTINELMay 17, 1996Saving Allowances TrulyPays DividendsCredit Union Run by Young People EstablishesInvestment Habit EarlyBy Joel Dresangof the Journal Sentinel staffDeVon and DeShawn Tylerwere as keyed up as two kidsin a candy store. Which iswhere they would have beenwith their allowances sevenmonths ago.Instead, this Wednesdayafternoon, they were at theLaVarnway Branch of the Boys& Girls Club, 2739 N. 15th St.For the $10 bill each boyunfolded on a table in aconverted upstairs supplyroom, each received a smile, aslip of paper and a complimentarypacket of Nestle’sQuik chocolate powder.They also gained anintrinsic sense ofaccomplishment, which isessential to acquiring thehabit of saving money.DeVon, 6, and DeShawn, 7,are among 117 members ofthe Keystone Credit Union, afinancial institution run forand by young people ages 6to 21.Begun in November as aservice project of CommunityYouth Assets, a local nonprofitgroup, Keystone isteaching kids that money canbe for more than justspending.“It makes money,” DeShawnsaid of his deposit —allowances he had hung on tosince the previous Friday. “Itmakes more and more.”In January, the teenagers onKeystone’s board startedsweetening the pot foryouthful savers with moneycontributed by the MilwaukeeFoundation.New members get $1 foropening an account and achance at a $10 drawing forevery $5 they deposit in theirfirst month. Other bonusesinclude $5 for five consecutivedeposits without awithdrawal, $1 to $2 for goodgrades, $30 for the biggestmonthly depositor and $50for bringing in the most newmembers in a six-monthperiod.In its first four months, theincentive plan spent $341rewarding members.Terrance Abernathy, 13,prides himself on being one ofthe top depositors in his agegroup. Wednesday, he sockedaway an additional $15 to the$165 account he began Feb.24. He earns money helpingan older brother run aweekend disc jockey serviceand by playing trumpet atchurch.“It’s very hard,” Terrancesaid of avoiding blowing allhis money on video games.“It’s like money burning in mypocket. But sometimes youcontinued...

As published inMILWAUKEE JOURNAL SENTINELMay 17, 1996...continuedjust have to let it burn.”One boy, out of breathfrom playing basketballdownstairs, approached theteenage staff at KeystoneWednesday and announcedthat he wanted to withdrawall his money.On learning that his $2 hadrecently earned a pennydividend, the boy was soimpressed that he changed hismind and withdrew only $1.Keystone offers lessons forteaching kids about money:Make it theirs: Keystone’smembers control their ownaccounts; no parent signaturesare needed. We learn best bydoing, even making mistakes.Make it fun: Making gamesof money management, withprizes and rewards, still canMake it fun: Making games of moneymanagement, with prizes and rewards,still can teach values, not to mentionmath skills.teach values, not to mentionmath skills.Make it pay: Like real life,Keystone’s dividends andbonuses show howpostponing gratification canbe rewarding later on.Make it simple: Unlike reallife, with labyrinthineprovisions for fees andpenalties, Keystone hasunderstandable procedureswritten by the kidsthemselves.Make an example: Youngstersemulate older kids theyadmire. Parents, believe it ornot, wield similar influence.The adults who helpedestablish Keystone areconsidering setting up asimilar outfit at the Boys &Girls Club branch at 3000 N.Sherman Boulevard.©1996, MILWAUKEE JOURNAL SENTINELReprinted with permission.Please visit our Web site at: www.quarles.comCHICAGOQuarles & Brady LLCCiticorp Center500 West Madison St.Suite 3700Chicago, Illinois60661-2511phone: (312) 715-5000fax: (312) 715-5155MADISONQuarles & Brady LLPOne South Pinckney St.Madison, Wisconsin53703-2808phone: (608) 251-5000fax: (608) 251-9166 or(608) 251-5139MILWAUKEEQuarles & Brady LLP411 East Wisconsin Ave.Suite 2040Milwaukee, Wisconsin53202-4497phone: (414) 277-5000fax: (414) 271-3552NAPLESQuarles & Brady LLP4501 Tamiami Trail NorthSuite 300Naples, Florida34103-3060phone: (239) 262-5959fax: (239) 434-4999PHOENIXQuarles & BradyStreich Lang LLPOne Renaissance SquareTwo North Central Ave.Phoenix, Arizona85004-2391phone: (602) 229-5200fax: (602) 229-5690TUCSONQuarles & BradyStreich Lang LLPOne South Church Ave.Suite 1700Tucson, Arizona85701-1621phone: (520) 770-8700fax: (520) 623-2418

As published inMILWAUKEE JOURNAL SENTINELOctober 15, 1995Kids Learn the Value ofPlanning for the FutureYouth-run Credit Union Aims to TeachMoney Management, LeadershipBy Joel Dresangof the Journal Sentinel staffAt age 14, Adella Deacon hasyet to earn her first dollar. Butalready she has her SocialSecurity number memorized,she talks with older relativesabout retirement savings andshe’s helping other kids managemoney.Adella is the secretary andyoungest board member of theKeystone branch ofCornerStone Credit Union, abrand new financial institutionrun for – and by – young peopleages 6 to 21.Keystone, which is set toopen Nov. 4, is housed in whatuntil recently was the upstairssupply room at the LaVarnwayBranch of the Boys and GirlsClub of Greater Milwaukee,2739 N. 15th St.Although other Wisconsincredit unions – including RoyalCredit Union, in Eau Claire, andSuperior Community CreditUnion – have branches in localschools, Keystone is the first inthe state to let youths be soinvolved in operations,according to Ralph Brunner,Wisconsin’s deputycommissioner of credit unions.Michael Ostermeyer, anattorney at Quarles & Brady andhead of the effort to establishKeystone, said he proposed theestablishment of a youth creditunion after hearing of a similarprogram in Massachusetts.Keystone is an independentbranch of CornerStone CreditUnion, West Allis. The kidswho have accounts at Keystonewill set policies for their branch,keep the books and share in anyfinancial gains.Keystone is the project ofCommunity Youth Assets, anon-profit group formed bymembers of the FutureMilwaukee leadership program.Its stated goals are to instill inyoung people concepts andskills that will help them takeresponsibility and makethoughtful decisions. Keystoneis intended to help kids learnabout leadership, managementand employment as well as thevalue of saving money.“The fact of the matter iseconomic wherewithal isimportant,” Ostermeyer said.Money affords people optionsin life, Ostermeyer said, and theearlier people learn to managemoney the more control they’llhave of their circumstances lateron. For many adolescents,setting aside money is about aseasy as saving a freshly bakedcookies. Immediate gratificationoften overpowers considerationsfor the future.But by listening to some ofthe young people involved instarting Keystone, it’s apparentthat some of the values offinancial planning already aresinking in.LaVaughn Cotton, 16, haslearned that saving money iseasier when he has a plan for it.He has socked away his earningsfrom a summer job andestablished a bank account heintends to use for college.“You have to think about whatyou need, “ LaVaughn said.Shiree Bass, 15, sees money asa vehicle of independence. Sheregard Keystone as her learner’spermit.“People are going to have tomanage their money sometimecontinued...

As published inMILWAUKEE JOURNAL SENTINELOctober 15, 1995...continuedin life. The can’t just depend onsomeone else,” Shiree said.“Right now is my time.”And even if the opportunitiespresented by Keystonesometimes result in mistakes, atleast the youths will learn lessonsthey’ll need later in life, said SamWilliams, director of LaVarnway.“As we learn from ourmistakes, it only makes usstronger and smarterindividuals,” Williams said.Some of the founding youthsof Keystone have good examplesof financial responsibility athome, but they don’t have far tolook for lesser role models.“Many people in thecommunity don’t have goodmoney habits. They spend itfoolishly,” said Santana Deacon,17. “People go to check cashingplace where you have to pay toget your money. You don’t haveto do that here.”And although the program isaimed at young people, adultsare likely to benefit fromchildren’s improved money skillsand self esteem.The kids who have accounts at Keystone willset policies for the branch, keep the booksand share in any financial gains.Yzonnia Wise doubted that herkids could handle theresponsibilities of running afinancial institution – let alonetheir won money – when the D.Edward Wells Youth CreditUnion was formed in Springfield,Mass., seven years ago. Theysurprised her.“It helped me to know mychildren are more comfortablewith finances than I am,” Wisesaid.The Wells Youth CreditUnion now has 1,200 membersand about $50,000 in assets.Many past staff members areworking in area financialinstitutions thanks to theirexperience.Community Youth Assets gotCornerStone involved in theMilwaukee effort and raisedstart-up money, including a$5,000 grant from theMilwaukee Foundation. It got apermanent office at LaVarnway,tapped the Boys & Girls Club’sleadership group and willsponsor a series of seminars andworkshops for Keystonemembers and staff.CornerStone is furnishing acomputer, printer, software andforms to Keystone as well astraining for the staff. ACornerStone employee willsupervise the youths duringKeystone’s office hours. As anadded incentive, CornerStone iscontributing $1 to each accountopened.For their part, the young peoplestarting Keystone are up for thechallenge, Ostermeyer says.“These kids are prettyimpressive,” Ostermeyer said.“When you give them somethingthey can invest themselves in,they really do a good job.”©1995, Milwaukee Journal SentinelReprinted with permission.Please visit our Web site at: www.quarles.comCHICAGOQuarles & Brady LLCCiticorp Center500 West Madison St.Suite 3700Chicago, Illinois60661-2511phone: (312) 715-5000fax: (312) 715-5155MADISONQuarles & Brady LLPOne South Pinckney St.Madison, Wisconsin53703-2808phone: (608) 251-5000fax: (608) 251-9166 or(608) 251-5139MILWAUKEEQuarles & Brady LLP411 East Wisconsin Ave.Suite 2040Milwaukee, Wisconsin53202-4497phone: (414) 277-5000fax: (414) 271-3552NAPLESQuarles & Brady LLP4501 Tamiami Trail NorthSuite 300Naples, Florida34103-3060phone: (239) 262-5959fax: (239) 434-4999PHOENIXQuarles & BradyStreich Lang LLPOne Renaissance SquareTwo North Central Ave.Phoenix, Arizona85004-2391phone: (602) 229-5200fax: (602) 229-5690TUCSONQuarles & BradyStreich Lang LLPOne South Church Ave.Suite 1700Tucson, Arizona85701-1621phone: (520) 770-8700fax: (520) 623-2418

As published inMILWAUKEE JOURNAL SENTINELOctober 15, 1995Keystone Openingis Nov. 4By Joel Dresangof the Journal Sentinel staffThe Keystone Credit Union isopen to anyone ages 6 to 21.New accounts will be acceptedat Keystone’s grand opening, 9a.m. to noon Nov. 4, at theLaVarnway Branch of the Boys &Girls club, 2739 N. 15th St.Weekly office hours will be 3:30-5:30 p.m. Wednesdays beginningNov. 8.Some form of identificationand a Social Security number areneeded to start an account, and aminimum $2 deposit is required.Accounts with a monthlybalance of $15 or more willreceived dividends. Depositorswith $5 or more will qualify tovote at the annual meeting inMay. Other provisions:• Depositors younger than 14will have no minimums ondeposits or withdrawals.Maximum withdrawals will be$10 per daily transaction.• Members 14 and older mustdeposit at least $3 or withdraw atleast $5 per daily transaction.Maximum withdrawals will be$25.• Maximum cash back fromchecks will be $25.• CornerStone Credit Unionwill contribute $1 for eachaccount. Other incentives willbe awarded for every fourthdeposit, every $15 saved bythose 13 and younger, every $50saved by those 14 and older, thehighest average balance for thetwo months precedingKeystone’s first anniversary andthe greatest number of depositsduring the year.• Loans will not be availableduring the first years, but theboard could elect to offer loansin the future.©1995, Milwaukee Journal SentinelReprinted with permission.Please visit our Web site at: www.quarles.comCHICAGOQuarles & Brady LLCCiticorp Center500 West Madison St.Suite 3700Chicago, Illinois60661-2511phone: (312) 715-5000fax: (312) 715-5155MADISONQuarles & Brady LLPOne South Pinckney St.Madison, Wisconsin53703-2808phone: (608) 251-5000fax: (608) 251-9166 or(608) 251-5139MILWAUKEEQuarles & Brady LLP411 East Wisconsin Ave.Suite 2040Milwaukee, Wisconsin53202-4497phone: (414) 277-5000fax: (414) 271-3552NAPLESQuarles & Brady LLP4501 Tamiami Trail NorthSuite 300Naples, Florida34103-3060phone: (239) 262-5959fax: (239) 434-4999PHOENIXQuarles & BradyStreich Lang LLPOne Renaissance SquareTwo North Central Ave.Phoenix, Arizona85004-2391phone: (602) 229-5200fax: (602) 229-5690TUCSONQuarles & BradyStreich Lang LLPOne South Church Ave.Suite 1700Tucson, Arizona85701-1621phone: (520) 770-8700fax: (520) 623-2418

As published inCORPORATE REPORT WISCONSINJuly 1995Central City DevelopmentA Penny Saved...By Cindy ZautckeBefore school opens again,visitors to the August M.LaVarnway Branch of the Boys& Girls Club of GreaterMilwaukee will see youngstersshooting baskets, learning touse desktop publishingsoftware, working with tutorsand banking at the Club’s creditunion.Later this summer, inadditional to the many otheractivities and programs offeredat LaVarnway, kids aged sevento 17 will be able to join ayouth credit union operated byLaVarnway’s Keystone Club, aleadership-developmentorganization for older Clubmembers. The youth creditunion is the fruit of a FutureMilwaukee study group projectstarted last December. “TheLaVarnway youth credit unionis modeled after the D. EdwardWells Youth Credit Union inWest Springfield,Massachusetts,” says MikeOstermeyer, a real estatelawyer at Quarles & Brady andhead of the group that startedthe project. “I’d heard aboutthe Wells project on NationalPublic Radio about the time wewere looking for study-groupfor ideas for our FutureMilwaukee class. I was lookingfor a project with a focus oneconomic development in thecentral city, and with someelement of education involvingyoung people. The youthcredit union idea seemed justright.”Ostermeyer signed up six ofhis Future Milwaukeeclassmates to get things off theground. Soon after, the groupincorporated itself asCommunity Youth Assets Inc.(CYA), a Wisconsin nonprofitcorporation.“The youth credit union isbuilt around three concepts,”says Renée Skivers, anaccountant at BDO Seidmanand the treasurer of CYA. “Thefirst concept — and the mostimportant — is consumereducation. We have a series ofprograms set up that aims toteach young people the basicaspects of why to save, how tosave, how to borrow wisely andhow to invest.“The other two elements areleadership development andsuccess-building. The creditunion will be run from top tobottom by its youth depositors.We’re working with kids whoare bright and talented, butwho haven’t always had thebest experience with the schoolsetting and who often comefrom a tough home situation.These kids need help learninghow to lead and to succeed,and we think we can providethat help.”CYA has had the energeticsupport of Ralph Brunner,Wisconsin’s DeputyCommissioner of CreditUnions. “As a state regulator,”says Brunner, “one of myprincipal duties is to educatethe consumers that our agencyexists to protect. This benefitsboth the credit unions andtheir members. The youthcreditunion project is anexcellent chance to teachyoung people about financialinstitutions and how to usethem wisely.”Having worked for manyyears with Wisconsin creditunions, Brunner helped CYAsteer clear of regulatory andorganizational land mines.More important, Brunnerguided CYA in its effort to finda credit union that wouldsecure a branch certificate forthe proposed project atLaVarnway and that wouldorganize the branch’soperation.continued...

As published inCORPORATE REPORT WISCONSINJuly 1995...continuedWith Brunner’s encouragementand with the support ofthe Wisconsin Credit UnionLeague, Cornerstone CreditUnion of West Allis has shownstrong interest in the project.“Credit unions as an institutionhave an obligation to supportcommunity development,” saysDavid Bitter, president ofCornerstone. “This project isconsistent with that obligation— and with the strong self-helpethic you see in the credit-unionindustry. We would definitelylike to be a partner in thiseffort.” With that partnership inmind, Cornerstone has enlistedthe additional support of FirstService and A-B Credit Unionsof Milwaukee, and has started todevelop operating proceduresfor a youth-run mobile branchthat can operate for 2 or 3 hourseach week at LaVarnway.Sam Williams, LaVarnway’sexecutive director, has been astrong supporter of CYA’s effortsince he first heard it presentedat a Boys & Girls Club staffmeeting in January. “Personalfinance is an area where ourkids fall short — where all kids“I think the youth credit union has unlimitedpotential. It teaches kids how to handlemoney, introduces them to finance, andopens the door to a wide range of interestsand opportunities that wouldn’t have beenavailable otherwise.fall short, for that matter.They know the value of adollar when it’s spent, but notthe value of a dollar that getssaved.” Williams agreed tomake available to CYA bothLaVarnway’s membership andits facility on North 15thStreet. In addition, Williamsallowed CYA to draw its initialyouth board of directors fromthe ranks of LaVarnway’sKeystone Club.With all the pieces of theproject starting to cometogether, Ostermeyer and hisgroup keep chugging along.“We’ve now applied to severalfoundations seeking support forour youth savings concept,”says Ostermeyer, “and areconfident that we’ll findcorporate sponsors to support– Sam Williams“us as well. Getting this projectoff the ground has been farmore work than any of usimagined. But we’d like to starttow more youth savingsinstitutions next years, and twoor three more the year afterthat. We know the need isthere.”Sam Williams agrees. “Ithink the youth credit unionhas unlimited potential. Itteaches kids how to handlemoney, introduces them tofinance, and opens the door toa wide range of interests andopportunities that wouldn’thave been available otherwise,”says Williams. “I think qualityof life will be enhanced for ourkids. This project is going toaffect a lot of lives in a verypositive way.”©1995, CORPORATE REPORT WISCONSINReprinted with permission.Please visit our Web site at: www.quarles.comCHICAGOQuarles & Brady LLCCiticorp Center500 West Madison St.Suite 3700Chicago, Illinois60661-2511phone: (312) 715-5000fax: (312) 715-5155MADISONQuarles & Brady LLPOne South Pinckney St.Madison, Wisconsin53703-2808phone: (608) 251-5000fax: (608) 251-9166 or(608) 251-5139MILWAUKEEQuarles & Brady LLP411 East Wisconsin Ave.Suite 2040Milwaukee, Wisconsin53202-4497phone: (414) 277-5000fax: (414) 271-3552NAPLESQuarles & Brady LLP4501 Tamiami Trail NorthSuite 300Naples, Florida34103-3060phone: (239) 262-5959fax: (239) 434-4999PHOENIXQuarles & BradyStreich Lang LLPOne Renaissance SquareTwo North Central Ave.Phoenix, Arizona85004-2391phone: (602) 229-5200fax: (602) 229-5690TUCSONQuarles & BradyStreich Lang LLPOne South Church Ave.Suite 1700Tucson, Arizona85701-1621phone: (520) 770-8700fax: (520) 623-2418