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Activity 1.Where Do I Keep My Money

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Check-Deferrals, Cash Advances, Payday Loans. Pawn Shops. Rapid Tax Refunds. Rent-to-Own ... Loans from family/friends. Cultural savings clubs ... – PowerPoint PPT presentation

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Title: Activity 1.Where Do I Keep My Money


1
  • Activity 1.Where Do I Keep My Money?
  • Activity 2.Evaluating Financial Services
  • Activity 3.Banks, Yesterday and Today

2
Introduction to Financial Services - Activity 1
ACTIVITY 1 Where Do I Keep My Money? Overview
The functions of banks The cost of
alternative financial services The stability
of banks
2
3
Slide 1 - Places to Save MoneyLesson Reference
Introduction to Financial Services, Activity 2
Overhead 1
  • PLACES TO SAVE MONEY
  • Would you save your money in any of these places?
    Why? Why not? Can you think of other places to
    save money?
  • Bed Mattress
  • Cookie Jar
  • Pillow
  • Wallet
  • Money Belt
  • Small House Safe

3
4
Slide 2 - Alternative Financial Services Lesson
Reference Introduction to Financial Services,
Activity 1 Handout 1
  • ALTERNATIVE FINANCIAL SERVICES
  • Check-Cashing Services
  • Check-Deferrals, Cash Advances, Payday Loans
  • Pawn Shops
  • Rapid Tax Refunds
  • Rent-to-Own
  • Other Financial Services

4
5
Slide 3 FDIC Lesson Reference Introduction to
Financial Services, Activity 1 Overhead 2
  • FEDERAL DEPOSIT INSURANCE
  • CORPORATION (FDIC)
  • Established in 1933.
  • Insures most Savings, Checking,
  • and other Deposit Accounts, up to 100,000 per
    depositor,
  • per institution.
  • Applies to most Commercial Banks, Savings
    Banks, and
  • Savings Associations.

5
6
ACTIVITY 2Evaluating Financial Services
  • Overview
  • Formal and informal financial services
  • Costs of alternative financial services and
    average bank accounts
  • Advantages of establishing a banking relationship

6
Introduction to Financial Services Activity 2
7
  • INFORMAL
  • FINANCIAL
  • SERVICES
  • Payday lenders
  • Check cashing services
  • Rent-to-own stores
  • Pawn shops
  • Title lenders
  • Loans from family/friends
  • Cultural savings clubs
  • Remittances offered through nonfinancial
    institutions
  • FORMALFINANCIAL SERVICES
  • Accounts
  • Credit cards
  • Loans
  • Investment vehicles
  • Direct deposit
  • Wire transfers/ remittances

7
Slide 1 Formal and Informal Financial
Services Lesson Reference Introduction to
Financial Services, Activity 2 Overhead 1
8
HOW A BANK CAN SAVE YOU MONEY Monthly Fees
without a Bank Monthly Fees with a Bank
  • 0 to directly deposit paycheck
  • 0 to get cash from bank's ATMs or make debit
    card purchase
  • 0 to pay monthly bills using electronic bill
    payment
  • 5 to send money to family
  • Monthly cost 5.00
  • Annual cost 60.00
  • 80 to cash paychecks
  • 3.81 on money orders and stamps to pay bills
  • 15 to send money to family with a wire transfer
    company
  • Monthly cost 98.81
  • Annual cost 1,185.72

Annual Savings by Using a Bank 1,125.72
8
Slide 2 How a Bank Can Save You Money Lesson
Reference Introduction to Financial Services,
Activity 2 Handout 2
9
ADVANTAGES OF ESTABLISHING A BANKING
RELATIONSHIP Nearly everyone needs a bank
account to help manage his or her day-to-day
money. Bank accounts can help you to Pay
bills Manage your money Receive money Send
money to a friend or family member Keep your
money secure Start building wealth Earn
interest
9
Slide 3 Advantages of a Banking Relationship
Lesson Reference Introduction to Financial
Services, Activity 2 Overhead 2
10
Introduction to Financial Services - Activity 3
ACTIVITY 3Banks, Yesterdayand Today Overview
  • The many traditional financial services provided
    by a bank
  • Other expanded financial services provided by a
    bank
  • The impact of banks throughout the community

10
11
Slide 1 - Traditional Services of Banks Lesson
Reference Introduction to Financial Services,
Activity 3 Overhead 1
  • TRADITIONAL
  • SERVICES
  • OF BANKS
  • Checking Accounts
  • Savings Accounts
  • CDs (Certificates of Deposit)
  • Savings Bonds
  • Loans
  • Car
  • Home
  • Personal
  • Safe Deposit Boxes

11
12
Slide 2 - Expanded Services of Banks Lesson
Reference Introduction to Financial Services,
Activity 3 Overhead 2
  • EXPANDED
  • SERVICES
  • OF BANKS
  • Insurance Sales
  • Small Business Advising and Loans
  • Investments
  • Credit Cards
  • Remittances
  • TRADITIONAL
  • SERVICES
  • OF BANKS
  • Checking Accounts
  • Savings Accounts
  • CDs (Certificates of Deposit)
  • Savings Bonds
  • Loans
  • Car
  • Home
  • Personal
  • Safe Deposit Boxes

12
13
Slide 3 - Financial Services Modernization Act
Lesson Reference Introduction to Financial
Services, Activity 3 Overhead 3
  • FINANCIAL SERVICES
  • MODERNIZATION ACT (1999)
  • Transformed the banking industry. Eliminated many
  • restrictions among companies in the securities,
  • banking, and insurance industries.
  • Results?
  • Banks may offer some insurance and investment
    services.
  • Investment and insurance companies may offer some
    traditional banking services. Investments are not
    insured by FDIC.

13
14
Slide 4 - Some Community-Related Services Lesson
Reference Introduction to Financial Services,
Activity 3 Overhead 4
  • SOME COMMUNITY-RELATED
  • SERVICES OF BANKS
  • Bank employees mentor students in areas of basic
    financial skills.
  • Bank employees serve on community organizations
    boards of directors.
  • Banks provide scholarships to students going into
    the banking profession.
  • Banks fund affordable housing construction.

14
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