Financial Services Econ 10/19

Warm Up How can you pay for these purchases without using cash? babysitting soda from a vending machine a used book from Amazon.com lunch at school new shoes from a retail store movie tickets used car cell phone bill an overdrawn bank account

Different ways of Paying Direct deposit Debit Card Automatic transfers Check Apps Money Order/Cashiers Check Online bill pay Credit card Gift Card

Bank Transactions Funds can be withdrawn on demand by a customer without advance notice to bank or credit union ATM, online transfers, phone transfers, check, debit card

Check Terminology Post-date: To write a future date on the check. Drawee: The financial institution holding the funds. Drawn: To withdraw money from the checking account. Third-party check: A check that is endorsed once and then being cashed or deposited by a second endorser.

Be Wary of Fraud The Federal Trade Commission (FTC) recommends: Deter misuse of your information Detect when you have a problem Defend yourself from loses Develop a plan with yourself, your partner, and your family to avoid scams, fraud, and theft of financial information. Change your passwords frequently Notify each other of purchases Never give anyone your pin number Secure your internet with a password Be extra cautious when online banking on public wifi or on your phone

Description of Transaction Reconcile an Account Code Date Description of Transaction Payment (—) Deposit (+) Balance Dep Mon Cash deposit 200.00 W/D Checks -20.00 180.00 100 Wed Fine Foods – groceries -23.11 156.89 101 Wayne’s Book World -13.50 143.39 d/c Thur Cash -30.00       113.39 Auto w/d Fri Phone bill -25.50 87.89 Sat Paycheck 113.76 201.65 The Bank Statement Balance + Outstanding Deposits - Outstanding Payments and Withdrawals Does the result equal what you tracked in your register?

Different Places to get Cash Bank: a financial institution licensed to receive deposits and make loans. Banks may also provide financial services, such as wealth management, currency exchange and safe deposit boxes. Credit Union: a member-owned financial co-operative. These institutions are created and operated by members and profits are shared amongst the owners. Check-cashing business: a business which cashes, on a regular basis and for a fee, checks for more than $1,000 to any one individual per day. Grocery Store/Liquor Store: similar to a check-cashing business you can cash non- personal checks at some grocery or liquor stores for a fee (usually $1 for every $100 cashed). Pawnshop: A pawn is another term for a collateral loan. Pawnbrokers lend money on items of value ranging from gold and diamond jewelry, musical instruments, televisions, electronics, tools, household items, etc. Loans are based on the value of the collateral.

Which Services Matter Most to You? Life Style Fees and User Requirements In-person or ATM deposits and withdrawals Online or mobile banking Convenient hours Convenient location Number of branch locations Other services (overdraft, automatic savings programs, alerts/reminders, etc.) Minimum opening deposit Required monthly balance Overdraft fees ATM fees Penalties and withdrawal limitations Monthly maintenance fee Interest rates

Reflection Where do you keep your money now and why? Is it safe? Is it growing? Can you track it?