NIBOA Banking Module PPT Banking Services

NIBOA Banking Module PPT Introductions INSTRUCTOR’S CONTACT INFO HERE w/ logo were BANK ON logo is. Introduce yourself and the lesson resources we will be utilizing. Be sure to let them know that questions throughout the class are acceptable, but there will be time for questions at the end of the session. Icebreaker: Move to next slide. Ask the question – “Where do you store your money?” Lesson resources provided by Federal Deposit Insurance Corporation, Purdue University Extension and University of Illinois Extension.

NIBOA Banking Module PPT Where do you store your money? Icebreaker: Ask the question – “Where do you store your money?” [Give the participants a couple of minutes to come up with a few answers. Then, ask for their answers. Be sure to participate in the discussion yourself and encourage them to answer.] Answers (not a complete list): At home In a piggy bank or cookie jar In your wallet or purse At a bank or credit unions [When answers have been exhausted, then move on to objectives. Tie in with -] “Today’s session, we will learn about the best place to store your money and why.”

NIBOA Banking Module PPT Objectives 1. Identify the + and - aspects of different financial services. 2. Understand the steps involved in opening and maintaining a bank account. “Money is an important part of our lives. Throughout each day we are constantly making decisions that affect how much money we have today and in the future. Today, our objectives are to identify the positive and negative aspects of different financial services and to talk about the steps involved in opening and maintaining a bank account.”

Financial institutions NIBOA Banking Module PPT Financial institutions Banks Subject to federal and state laws Credit Unions Are non-profit financial institutions Requires membership to open an account “There are 2 types of financial institutions - Banks and Credit Unions.” [Read off characteristics of both.] Both institutions provide similar financial services such as…[next slide]”

Why a financial institution? NIBOA Banking Module PPT Why a financial institution? Safety/Security Convenience Financial future Required to “So why keep your money at a financial institution? If you already have a checking or savings account, you may already know the reasons why.” [Define the different reasons why with examples.] Safety/Security – Your interest is protected by the FDIC (Federal Depository Insurance Corporation). So no worries about it being lost or stolen. Convenience – When you have a good standing bank account with a bank or credit union it helps you to establish your relationship for other banking services and helps build your money borrowing capabilities. Financial future – Some bank accounts, such as a money market or savings account, you can earn additional funds by keeping your money in your account. Required to – many employers nowadays require a bank account in order to direct deposit your check, even social security check deposits. Are there any other reasons for why keeping money at a financial institution, by having a checking or savings account, is a good thing?” [This may be a good time to address costs of having a bank account. There are 3 different costs associated – the actual cost of the account, the consequences of NOT having an account (payday loans, check cashing fees, etc) and the consequences of not being a good steward of the account. Some of this is addressed later in the presentation, but could start the discussion now.]

NIBOA Banking Module PPT Banking products Checking accounts Savings accounts Debit cards with opt-in/out option Credit cards Loan and financing services “Here some of the products a bank or credit union can provide - checking accounts, savings accounts, debit cards, credit cards and loan services. Let’s run through quickly what each of these services are.” [Then, define the different services. Few additional things to note/say specifically about certain these following items: Checking account, include second chance accounts. These accounts are offered by the Bank On Alliance bank members for individuals who have had trouble securing or keeping a bank account. If this is the case for you, we can one-on-one after class about your options for reopening an account. - Debit Cards – talk about the option of opting out of some service options in order to avoid paying fees, such as overdraft fees. You may have to define opting out and what overdraft fees are. Other fees are mentioned on slide 12, Banking has a price. Loans and financing encompass personal-small loans, business loans, 529 loans, home loans (mortgages) and car loans. With a checking or savings account established with a specific banking institution, it will be easier to start the borrowing money conversation with that institution. Credit building products, power pay and secured credit cards – mention these additional items as see fit.] As with all products and services purchased, there maybe fees or incentives to help you maintained your account properly. More information about this as we go.”

NIBOA Banking Module PPT Matching game Handout – Activity 1 – Banking Services and Product Matching Game [Activity 1 and 2 are on the same handout]

NIBOA Banking Module PPT Opening an account What you need Identification Social Security card Money to deposit into the account Bank will Have you fill out an application Run a ChexSystems or credit report check “To getting started, you will need Your id, such as a valid driver’s license with valid home address, Your Social Security card, And, money to deposit into the newly established account. The Bank will have you fill out an application to get the process started, as part of the process they will check your credit and/or account history using a system called ChexSystems or your credit report. [Define ChexSystems and credit report here.] Once approved, you will sign an agreement and receive all account information related to the account. If this is a checking account, you would receive fee information and an initial check supply. Typically, the debit card with the account will come in the mail. If this is a savings account…[note anything special about saving here.]. In talking about what the bank does when opening an account, I mentioned that they may check your credit report. If you’re credit report and credit score are not in the best standing, Bank On Alliance members do offer services that can assist with improving your report, whether you need to build a credit portfolio or have had credit issues in the past.”

NIBOA Banking Module PPT Account access Direct deposit Checks, debit card Internet/mobile banking Bill payment and fund transfers Alerts for bank balance or deposits “Once you’ve opened an account, here are a few different ways to put money in to and take money out of your account. [Explain the different ways to put money in & take it out. Might address the below when Few notes for under online banking:] Internet banking allows you 24 hours a day, 7 days a week access to your money. It offers great convenience to pay your bills and transfer funds online. There is even an option to have the program automatically pay bills and transfer funds between accounts. The automated services is a great way to insure you are paying yourself first by transferring funds into a savings account or to pay bills if the bill is the same every time it needs to be pay, i.e. paying a loan. However, I must warn you that the auto-feature should probably not be utilized unless you have a good handle on the money flow in and out of the account through deposits and withdraws, because if the money is not there and the auto-payment goes through the account will incur a service fee. It’s a bit like bouncing a check. Once you have a good understanding of cash flow in and out of the account the auto option is a very convenient way to assist with your financial commitments. To have a good understanding of a spending-savings plan would come in handy here. If interested in learning more about this, let me know.”

Maintaining an account NIBOA Banking Module PPT Maintaining an account Make deposits and withdrawals Track account activity Deposits Withdrawals Fees received Interest gained Know your agreements “Your financial institution representative, such as myself, is here to help you keep your account in good standing. If any questions during the opening of an account or while maintaining the account, don’t hesitate to ask. Upon opening an account, you should do the following items to make sure it is in good condition. Make deposit and withdrawals – you can not withdraw what you don’t have. Deposits are very important. Track account activity – This two is very important. It will help you make sure that you do not receive any charges that we discussed on the previous slide. Interested gained – Some checking and savings accounts may have the added benefit of you receiving interest or dividends on the balance in your account. Typically, this is monthly. This version of interest is the financial institution is paying you to store your money with them. Be sure to know the terms of your agreements with your bank for your given accounts. For example, some banks offer debit transactions for free, including cash back options at the register. However, some banks charge a fee for using your card for a debit transaction at the register.”

NIBOA Banking Module PPT Banking has a price ATM fees Bank account minimum fee Cost of checks Insufficient funds – returned checks Identity theft fee Lack of direct deposit fee Overdraft fees Transfer fees “Banking is a trust relationship between you and the financial institution. They trust that the customer will make every effort to be a good steward of their money and their bank account and they, in turn, provide a variety of services for free or at minimal cost. Some fees occur when accounts do not meet the standards set forth in commitment agreement signed at the opening of an account. When the agreement followed in one of many ways, one or more of the follow fees may occur: [Walk through each fee and when it occurs.] ATM fees Bank account minimum fee Cost of checks Insufficient funds – returned checks Identity theft fee Lack of direct deposit fee Overdraft fees Transfer fees When fees add up and go unpaid, the account may be closed. One of the best ways to avoid some of these fees is by keeping an eye on your account balance.”

Making deposits and withdrawals NIBOA Banking Module PPT Making deposits and withdrawals Handout – Activity 2 – Making deposits and withdrawals handout [Same handout as the first activity]

NIBOA Banking Module PPT When you get home Investigate opening a checking or savings account Check out NIBOA.org, then open one. If you already have one Track account activity – Pocket Expense app “So, here’s your homework assignment. If you don’t already have a checking or savings account, investigate opening one. Start at NIBOA.org. As I mentioned earlier, Bank On Alliance bank members offer second chance accounts for individuals who have had trouble securing or keeping a bank account. There are a variety of products available on the website. Or let me know you interest and we can work on something after class. If you already have a checking and/or savings account, work on tracking your account activity so that you know. Optimally, it would be good to check at least once a week depending upon your account activity. You may find mobile phone apps, like the Pocket Expense app, helpful. Also, a good time to check it is prior to new purchases, so you know how much you can spend. Remember your financial institution representative is here to help you be financially stable. If you have questions, be sure to ask.” Handout – Class summary sheet.

NIBOA Banking Module PPT Thank You! INSTRUCTOR’S CONTACT INFO with logo HERE “And, with that, do you have any questions?” Thank them for coming. At this time, hand out the evaluation form to fill out, then collect them once finished and exchange them for their course completion certificate. “If interested in attending more classes, direct them to the website – NIBOA.org” Handout – assessment/evaluation form and course certificate Interested in another class? Visit NIBOA.org. Lesson resources provided by Federal Deposit Insurance Corporation, Purdue University Extension and University of IL Extension.