Following the figures revealed by Whitby’s Citizens Advice Bureau in January showing 94 clients with debts totalling over £1.2m, Whitby and District Credit Union has introduced School Banking to Seton School in Staithes and Oakridge School in Hinderwell.

The scheme encourages children who open accounts to save money regularly by taking money and a pass book to a collection point on Monday mornings.

Fully supported by the schools’ heads, staff and parents of the children, the scheme has proved to be a great success with well over 40 children taking part.

Development worker for the Credit Union, Hazel Percival said: “It is not about the amount the children save, in fact no amount is too small.

“It is the importance of the children getting into the habit of saving and gaining confidence in coming to the collection point, handling their money, and seeing the amount of savings grow in their passbooks.

“It is lovely to see the children gaining confidence and taking the responsibility of looking after their passbooks.”

Seton School headteacher, Ros Barningham added: “We are delighted to support the Credit Union.

“Our children have shown mature attitudes in the management of the scheme which could be fundamental for them in the future.”

The Credit Union is controlled by the Financial Services Authority (FSA), and aims in particular to help poorer families who cannot get credit from banks or cheaper lenders because they are too high risk, but is open to all, whatever their circumstances.

To qualify for a loan, people must show that they can save with the Union. They are then able to borrow money at a low, manageable rate.

Collection times for the two schools are: 10.30am Mondays at Oakridge School, and 11.30am Mondays at Seton School.

For more information on Whitby & District Credit Union call (01947) 603030 or log on to www.wdcu.co.uk