Empowering teachers with specialized financial tools and education programs

Teachers nationwide make only 73 cents for every dollar, relative to the earnings of similar other college-educated professionals. Foothill Credit Union in Arcadia, California, is addressing this challenge head-on with one of the most comprehensive educator benefits programs in the credit union movement.

Comprehensive teacher benefits address financial challenges 

The 66-year-old institution has built its identity around serving what President and CEO Mike Terzian calls "the core of the community:" education, healthcare, and government workers. With teachers seeing inflation-adjusted starting salaries that are $3,728 below 2008-2009 levels, Foothill's holistic approach provides crucial financial support when teachers need it most.

"We try to take a very holistic view," said Terzian during a recent interview. "When we look at the education field, it seems like every year they're getting thrown a different curve ball, whether it's budgeting, class sizes, curriculum, you name it." 

Specialized products address teacher pain points 

At the heart of Foothill's teacher support is a standout 6% summertime savings account allowing deposits up to $3,000 monthly, specifically designed to help teachers bridge the income gap during unpaid summer months.

"It sounds great to think, ‘Wow, I don't have to work in the summer,’ except for you're not getting a paycheck," Chief Strategy Officer Jonah LaFollette explained. "This allows them to bridge that gap." 

Additional benefits include $100 for opening a checking account, $200 with a new auto loan, and $1,000 off mortgage closing costs upon completion of their mortgage training programs. For career advancement, educators can access up to $15,000 through specialized career growth loans, plus dedicated technology and career supply loans. 

Terzian emphasized the long-term vision: "Being able to give teachers a classroom grant of $500, $1,000, things like that really can help lay the groundwork for them to do their job effectively and make that much more of an impact on, let's be honest, the future." 

Deep partnership approach drives success 

What sets Foothill apart is their integration into school communities far and wide. Serving 16 school districts, two colleges, and 23 private schools across Southern California's foothill corridor, the credit union conducted more than 50 back-to-school events this academic year, with business development representatives and branch staff working directly with educators and new hires.

"We're so integrated in the school communities, they think of us so much as a close partner that they're always coming to us first," LaFollette noted. "Hey, can you do this? Can you provide that? Can you fund this? Can you do a training on that?" 

The credit union provided 219 hours of financial literacy education reaching 4,700 students last year, including participation in Bite of Reality programs that simulate adult financial decision-making. 

This timing aligns perfectly with California's new requirement that all high school students complete a semester-long personal finance course starting with the class of 2030. The legislation signed in June 2024, makes California the 26th state to mandate financial literacy education. 

"About a year ago, California legislature passed a law requiring that high school students actually have to get financial literacy (coursework). It literally is now a core competency," LaFollette said. "And the reason is because so many of our young people don't know how to do basic budgeting." 

Expanding reach through authentic relationships 

Foothill's approach to financial education demonstrates the credit union difference in action. Rather than one-size-fits-all programming, Foothill customizes support based on district needs, with teachers often requesting specific training for their students. 

"A lot of times with these services, like Bite of Reality training, we actually have teachers reaching out to us saying, ‘Hey, can you educate our students?’" LaFollette explained. "The administrators and the educators understand that this is vital for them as young adults getting ready to move on." 

Addressing California's cost-of-living reality 

The comprehensive approach proves especially critical in California, where housing costs significantly outpace national averages. Foothill's mortgage assistance and summertime savings programs specifically address regional financial pressures facing teachers. 

"Our educators aren't paid enough. They deserve more money and it's an expensive area we live in," LaFollette acknowledged. "I think helping our educators and supporting them to get where they need to go, whether it's buying a new home or the career growth, we're here because of the educators." 

The credit union's evolution from serving a single school district in 1958 to supporting education communities across Southern California demonstrates how credit unions are scaling their mission while maintaining personal relationships. 

"We're going to integrate ourselves, the whole credit union, into that community," Terzian said, describing their commitment to authentic partnership that extends far beyond traditional banking relationships.