Local Money: Why It Matters for Your Wallet

Local money is a vital part of our community's economy, and it's essential to understand its significance for our wallets. By using local money, we're directly supporting our neighbors and local businesses.

Local money can help keep more money in our community, as it's designed to circulate within a specific geographic area. This can lead to increased economic growth and a stronger local economy.

Using local money can also encourage us to shop at local businesses, which can have a positive impact on our community's character and charm.

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Local money is created specifically by statute, and it can be held in various ways.

Local funds are not subject to appropriation by the Legislature, which means they have more freedom to manage their finances. They can be held by the investment arm of the Comptroller’s office, the Texas Treasury Safekeeping Trust Co. (TTSTC), or in private financial institutions.

Local operating funds, used for daily operations, comprise 76 percent of the value of all state cash and cash-equivalent funds held outside the Treasury.

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Local banks are a great way to keep your money local, and it's not just about the money itself. They have a vested interest in investing in the community, making "productive investments" that directly benefit the area.

Local banks make more than half the loans to small businesses, so your money is being used to help local entrepreneurs and businesses thrive. This can be a compelling factor when seeking a loan or investment for a business or service that will benefit the local area.

By choosing a local bank, you can save money on fees and interest rates. Overdraft fees at smaller banks are as much as 19% lower than at large banks, and interest rates are typically 8-10 points lower as well.

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Local funds must be created specifically by statute, and new money coming in goes to state general revenue unless a bill explicitly directs it elsewhere.

Certain state agencies and institutions of higher education are authorized to keep funds in accounts outside the state Treasury, where they are not subject to appropriation by the Legislature.

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Local funds can be held by the investment arm of the Comptroller’s office, the Texas Treasury Safekeeping Trust Co. (TTSTC), or in private financial institutions.

Most local funds are held in investments, some are in cash or have a cash-equivalent value. In 2017, local operating funds comprised 76 percent of the value of all state cash and cash-equivalent funds held outside the Treasury in 2015.

Keeping your money local has numerous benefits, and one of the most significant advantages is that it helps to keep your community thriving. By spending your money in local businesses, you're more likely to see the money stay in the community.

Local money can also help to reduce your carbon footprint. This is because local businesses often have shorter supply chains, which means less energy is required to transport goods and services.

When you keep your money local, you're also more likely to get a better deal. Local businesses often offer more personalized services and are more willing to negotiate prices.

Local money can also help to preserve local culture. By supporting local businesses, you're helping to keep traditional skills and practices alive.

Keeping your money local can also help to reduce the impact of economic inequality. Local businesses are more likely to hire people from within the community, which can help to reduce unemployment and poverty rates.

Local banks are more than just financial institutions - they're members of your community. They have a vested interest in investing in the area, which means your money is being used to directly benefit your local neighborhood.

Local banks make more than half the loans to small businesses, so your money is being used to help entrepreneurs and small business owners in your community thrive.

This focus on community investment can be a compelling factor when seeking a loan or investment for a business or service that will benefit the local area.

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Local banks offer much more personalized service than big banks, with a net 74% customer satisfaction rating compared to just 56% for larger banks.

You'll actually get to see a familiar face when you need help, rather than navigating confusing phone menus.

Local banks prioritize "relationship banking", which means they consider your relationship with the bank, your spending history, and the potential impact on the community when you need a loan.

This approach can make it easier to borrow money, and you'll likely get a lower interest rate too.

Local money can be a game-changer for local businesses, with some seeing a 20-30% increase in sales after adopting local currency systems.

By keeping money within the community, local businesses can benefit from increased foot traffic and customer loyalty.

Local money also helps to reduce the power of big banks and corporations, giving more control to the community.

Community-led initiatives can create jobs and stimulate local economies.

In some cases, local currencies have been used to support local farmers and artisans, promoting the use of locally sourced products.

This approach can also help to reduce carbon emissions by reducing the need for long-distance transportation of goods.