Financial Literacy Part I

Spending We live in a world where the pressure to spend money is constant. You are surrounded by ads. And advertisers are now placing products in movies and inserting messages on TV. They're even in online blogs and message boards.

Buying Resist impulse buying. Advertisers study buyers and buying habits all the time. So these people have got some pretty clever ways to convince you that you must have something. Advertisers don't want you to think about what you're doing. They want you to buy right now – if you stop to think, you might not buy

How not to spend… How do you hang on to your cash so you don't just buy impulsively? Ask yourself these questions

How not to spend… Do I really need this item? If I don't need it, why do I really want it? Am I sure that I'll use it? Wear it? Am I sure that I'll use it? Wear it? If I buy it now, will I have enough money for other things I might need later on – this week, this month, next month? If I buy it now, will I have enough money for other things I might need later on – this week, this month, next month? Will this purchase take money away from paying off any debts I owe? Will this purchase take money away from paying off any debts I owe?

How not to spend… Is there any risk in delaying this purchase in order to think about it longer? What are the chances this item might go on sale soon? Could I find this item somewhere else cheaper? Could I find an item like this, but without a brand name? It will probably cost less.

Homework Assignment Go to harlanfalcons.org Take the quiz listed in homework assignments What kind of spender are you?What kind of spender are you? Take this short quiz and find out. What kind of spender are you?

Types of Bank Accounts Checking-a bank account that uses checks as the primary instrument for withdrawing money. With a checking account, you can make purchases, pay bills, and give or loan money to anyone you choose. You can also use a check to transfer money from your checking account to a bank account at a different financial institution. (ATM) checking account checking account

Types of Bank Accounts Savings- another type of account that allows the holder to make deposits and withdrawals. However, savings accounts are not as flexible as checking accounts. Often, holders of this type of account are limited in the number of withdrawals and deposits they can make each month.

Types of Bank Accounts Money Market-pays interest at a higher rate than the rate paid on interest-bearing savings and checking accounts. Often, money market accounts impose a minimum balance for the account to start earning interest. minimum balance minimum balance minimum required balance on a money market account is usually higher than that imposed on a checking or savings account. withdrawals are limited to six per month. No more than three of these withdrawals can be by check.

Types of Bank Accounts Certificates of Deposit (CDs)- require the account holder to make a deposit and agree to leave funds in the account for a specific amount of time. In return for this agreement, the financial institution pays interest to the account] account holderaccount holder the interest paid on a CD is higher that the rate paid on other types of account. The account holder is required to keep his or her money in the account until the specified term is over.