1) Why was it important to divest your personal finances?
It has been frustrating for us to find a way to help in a significant way in the fight against climate change. Being a global scale issue, it often feels that the problem is so vast and our efforts so insignificant, that our efforts don’t count. However, when I came across the notion that, for people of our age, our largest carbon footprint comes from our banking and related financial resources, i.e., it comes from where we keep our money. I had no idea that having our money in the “dirty” banks was contributing to their ability to continue to fund oil, gas, and other climate-damaging investments. I realized that I didn’t need to continue to fund these unhelpful investments by proxy; I could move our money to banks with uses for our money that align with our values. This was revelatory; suddenly, I felt that I had some power and could affect small but significant change!
2) What was the hardest moment in the move your money process and how did you overcome it?
It was the feeling of overwhelm and stasis. We had been with one of the big 4 dirty banks for over 35 years and had multiple accounts (6 personal and 2 business accounts!). The thought of moving our money seemed formidable. I realized that I just had to start the move and that it would take a while to complete. I found a very good community-oriented bank and I began the process of opening accounts in the new bank. It was difficult for a while having to straddle two different banks, keeping the cash flows balanced and shifting the automatic payments from the old bank to the new one. It also took time to learn the “culture” of the new bank and to learn the new mobile banking interface, yet it was a fantastic feeling of satisfaction when the process was completed and I could call up the representatives at my former bank and have them formally close those accounts, AND letting them know why I was making the move!
3) What pleasantly surprised you about this experience?
A few things. First, the process gave me the opportunity to take a fresh look at our financial situation and started me on a process of reorganization and simplification of our banking structures. Our accounts had multiplied like feral cats over the years. Did we really need all of those accounts? I was able to greatly simplify our banking, which has been a relief!
Secondly, I was able to reach real human beings at the new bank (a difficult process always at my former bank) and they were able to help me at points where I needed explanations, help with technical aspects, or just some hand-holding. Very pleasant!
4) What piece of advice would you give to someone considering switching?
I think that it’s important to research what type of financial institution you want to handle your money – it needs to work for you. There are Third Act resources to help you with this. Secondly, even though the task might feel daunting, the important thing is just to start, to take the next step, and the next after that. Before you know it, you will have completed the transition out of the dirty banks and will have dramatically reduced your carbon footprint! It’s worth doing!
Inspired by Rodney’s story? Our Banking On Our Future task force is here to help!
Visit the Third Act-approved resources below, or drop us an email at thirdactsocalbanking@gmail.com.
Step-by-step Move Your Money Workbook (in partnership with “THIS! Is What We Did”)
Drop-in office hours with a trained peer facilitator (in partnership with “THIS! Is What We Did”)
Aligning Your Money With Your Values Webinar (hosted by Green America)
Third Act volunteers are not financial advisors and are legally prohibited from giving financial advice. The resources and support we provide are for educational purposes only and all financial decisions are your own.