UNDERSTANDING BANKING

Slides:

Advertisements

Similar presentations

Personal Finance: Insurance Insurance is to provide financial protection against different kinds of risks we face in life. Insurance Policy: Your policy.

Advertisements

Credit Buy Now, Pay Later. Credit Someone is willing to loan you money (principal) in exchange for your promise to pay it back, usually with interest.

Credit. 1. WRITE YOUR OWN DEFINITION FOR CREDIT ON YOUR PAPER. SENTENCES: 1.I RECEIVED CREDIT FOR TURNING IN THE ASSIGNMENT. 2.WHEN THE PIZZA DUDE MESSED.

Using Credit Chapter 25, pgs

Chapter 23.1 Use your Money Wisely

Section 5.1: Selecting Financial Services and Institutions

CONSUMER CREDIT Understanding the fundamentals of using credit and identifying its benefits and costs.

Copyright © 2011 Pearson Education, Inc. Managing Your Money.

Warmup Why does the dollar on the left have value, while the one on the right does not?

TEST PREP 1. A. The amount you can afford to pay B. The minimum payment stated on your bill C. The minimum amount due on your debit card D. 20 percent.

Investing 101. Types of Savings tools Savings Account: An interest-bearing account (passbook or statement) at a financial institution. Certificates of.

SECTION 2: WHAT IS CREDIT Unit 6: Credit. I Can: Differentiate Credit Cards from Debit Cards Describe the importance of APR Define and apply: credit limit,

Grade 12 Family Studies. B6I.

Chapter 19, Lesson 3 Saving and Investing.

Financing Your Business

Spending, Saving, & Investment UNIT 8: PERSONAL FINANCE (1)

Banking. What does the banker do? Banking Financial Institution permitted to – hold savings deposits – offer loans and mortgages – issue credit rating.

PERSONAL FINANCE IVERSON Revolving Credit. Credit Cards Credit Cards allow you to borrow money from a bank each time you use your card so that you can.

Credit Fundamentals 18-1.

Credit Chapter 25.

Budgeting and Financial Planning. Budgets Budget: A plan for how a person, family, or organization will raise and spend money. Why do you think it is.

Where should i put my money? Types of Accounts Checking? Savings? Under the mattress?

Investing in Mutual Funds or Real Estate Chapter 14 Notes Mutual Funds  This is the most popular investment alternative out there! Here are the basics:

Unit 9 - Finance Spending, Saving and Investing. Three things you can do with money: 1) Spend 2) Save 3) Invest.

Using Credit. Terms to know Credit Creditor Revolving Charge Account Installment Account Vehicle leasing Cash loan Collateral Cosigner Home equity loan.

Understand credit management 1. 2  What is credit? Credit is the privilege of using someone else’s money for a period of time.  Who uses credit? ◦

5.1 Savings and Investing 5.2 The Rule of 72 Getting Started.

Section 5-1 Monthly Payments. What do you know about Credit? Credit is whenever goods, cash, or services are provided in the promise to pay at a future.

Savings, Investment and the Financial System. The Savings- Investment Spending Identity Let’s go over this together…

Dear God – I know that You are the source of all that I need to get through each day. I need to look for your wisdom and strength to make my day easier.

Banking, Saving and Investing Using Money to Make Money.

Payment Methods and Credit. In This Lesson: 1.Compare the advantages and disadvantages of using various payment methods. 2.Differentiate between a debit.

What is the difference between savings and investments?

Home buying Case Study By Arthur Espinoza.

Credit What YOU need to know!. What is Credit? Credit is borrowing money now to make an immediate purchase and promising to repay it later.

Day 1 Terms of the Day 1. Financial- having to do with money 2. Financial Management- how you manage your money 3. Financial Goal- something you wish.

Objective 8.08 and 8.09 Evaluate the investment decisions made by individuals, businesses, and the government. Describe the role of money in trading, borrowing,

INTRODUCTION TO BUSINESS & MARKETING CREDIT. Objectives Compare the types of consumer credit Describe the advantages and disadvantages of using credit.

Personal Finance The economy in our state is affected not only by national and global markets, but is also affected by actions and decisions we make about.

Using credit is a way of life. People use credit online and for everyday purposes. Some do it so they don’t have to carry cash. Some use it to buy things.

Budgeting Credit Checking Investing Living on your.

Banking Savings Checking Credit Cards

Budgeting and Financial Planning Why should people make a plan for how to get and spend money? What strategies can be used to do this most effectively?

money you have in a bank either in checking (where you can use the money with an ATM card or by writing a check) or savings (where you earn interest)

Investment, Credit, and Interest BBI2O. Recap: types of investments Investment options vary according to risk and return  Risk: how “safe” is your investment.

Sources of Finance Own funds Profits Loans Overdraft Hire purchase Leasing Selling assets Venture capital Shares Debentures Government Grants.

Credit and Debt. The basic idea You want money (say to buy a house) You go to the bank to borrow some They agree to give you money, but only if you pay.

Do Now In a few sentences, describe the barter system. What are its advantages and disadvantages? If you had to function within a barter system, what would.

Section 5.1 Financial Services and Institutions

A. Compare services offered by different financial institutions. b. Explain reasons for the spread between interest charged and interest earned. c. Give.

Different ways a business can obtain money

UNIT FIVE. CREDIT: BUY NOW, PAY LATER. Coming soon to a mailbox near you: Credit Card offers.

Checking Savings BANKING. Checking Account 90% of transactions involving money are made through some form of debit.

money you have in a bank either in checking (where you can use the money with an ATM card or by writing a check) or savings (where you earn interest)

 Investing: The purchase of anything of value with the expectation that its value will increase.  In all investments, THE HIGHER THE RISK THE HIGHER.

Managing Your Money Chapter 23.

Credit Credit: borrowing money to pay for something now while promising to repay it later. Lender: the person loaning the money Borrower: receives the.

Banking and Credit.

Grade 12 Family Studies.  Do you have a credit card?  What is it used for?  How is it like a loan?

ESSENTIAL QUESTION: HOW CAN SOMEONE INCREASE THEIR HUMAN CAPITAL? HOW CAN CREATING AND MANAGING A BUDGET HELP SOMEONE MAKE BETTER FINANCIAL DECISIONS?

CHAPTER 12 SAVING AND BORROWING. A. WHY SAVE? 1. Save money for a big purchase 2. Save money for emergencies 3. Save money to give you security 4. Save.

Credit. What is Credit? When you borrow money to purchase something and promise to pay the money back later, you are using credit.

Personal Finance Economics. Income This is the money that you have earned or have been given each day, week, month, or year. Often, this refers to the.

Using Credit Wisely. Credit  Credit is a sum of money a person can use before having to reimburse the credit lender.  It allows a person to receive.

Consumer Economics Credit Credit Investing Investing.

Budgeting and Financial Planning

Budgeting and Financial Planning

Budgeting and Financial Planning

Budgeting and Financial Planning

$$$ Management What is the difference between credit & debit?

Presentation transcript:

UNDERSTANDING BANKING Get your money working for you!!!

What we’re going to talk about… Chequing/Savings Accounts Loans vs Lines of Credit Mortgages Cheques Credit Cards Purchases? Investments

CHEQUING ACCOUNT PROS Convenience: For taking out money /using debit on a regular basis. Can pay bills and write cheques from this type of account. CONS You pay a monthly fee once you turn 18, unless enough money is kept in. No interest (money) is made.

SAVINGS ACCOUNT Pros Your money grows when in a savings account (interest) Account is free as long as you do not take money out more than twice per month. Helps you to save for education, a house, retirement, etc. Cons Can make more money from other investments. May end up paying more than you’re making if taking money out too often.

LOAN vs LINE OF CREDIT -A LOAN is when you borrow a lump sum of money. ie. When you go to a bank to get money to purchase a car. -A LINE OF CREDIT is when you have a maximum amount of money you qualify to borrow, but you do not need it all at once, so you borrow the money as needed. ie. You’re doing home renovations and need money, but you do not need all the money at once, so rather than paying interest on money you do not need right away, you only take as needed.

MORTGAGE A form of debt in which one can own property by paying the entire price over time with interest. -The home is held as collateral; so, if you are unable to make your mortgage payments, the bank or lender will gain ownership on your home. -Different rates depending on where you get your mortgage from…SHOP AROUND BEFORE SIGNING!!!

CHEQUES Regular Cheque A piece of paper saying that you have that amount of money in your account to give to the other person (a promisory note – promise to pay them that amount) Bounced Cheque(Sometimes happens to regular cheques) A cheque was given out, but the person giving the cheque did not have enough money in their account. Certified Cheque Same as a regular cheque except that the bank has stamped it indicating that they have already taken the money out of the person’s account so you know it will not ‘bounce’.

CREDIT CARDS PROS 30-day interest free loan. Many cards offer cash-back or rewards when used. Do not have to carry cash. Will get reimbursed if stolen. CONS Interest rates VERY HIGH. Easy to spend money that you do not actually have, thus leading to spending problems.

PURCHASES- How would you pay for these??? CAR? HOUSE? COUCH? CLOTHES? BIG SCREEN TV CANDY or PEPSI

INVESTMENTS STOCKS -Investing in companies. MUTUAL FUNDS -Investing in a collection of stocks, bond and other investments. -Investing in a large variety of investments like this generally is less risky. PROPERTY FLIPPING/RENTING Buying property and then either renting it out or fixing it up and selling it for a higher price to make profit. (ex.HGTV)

What we’re going to talk about… Chequing/Savings Accounts Loans vs Lines of Credit Mortgages Cheques Credit Cards Purchases? Investments

The END…go enjoy yourselves