2. Balance – Amount in your account. Interest – Money bank pays you for your money. - And money you pay bank for using theirs. Are these always the same? Deposit – To put money IN an account. Withdraw – To take money OUT. Endorse – To sign a check. Debit – To take money out. Credit – To put money in. (Confusing right?) Void – To cancel a transaction

3. Bank: A business owned by investors that will hold ANYONE’S money. Originally designed to serve businesses only. Tend to have more fees. Examples: _Wells Fargo Bank_ _U.S. Bank_ _Bank of America__

4. Thrift Institutions: Originally, they concentrated on serving people whose banking needs were ignored or unmet by commercial banks. Examples: Savings Banks (early 1800s – rainy day funds, blue collar) Savings & Loans Institutions (1800s – help factory workers save and buy homes) Cooperative Banks (“) Credit Unions (see next slide) Today they offer many of the same services, but at one time, they were very different from one another.

5. Credit Union: A business owned by customers (called “members”) who all meet membership qualifications. C.U.s are – they are established by law to serve groups of people based on: Employment field Religion Location of home/job Etc. Members pooled their savings and used the money to make small loans to one another. (early 1900s) Examples: _Silver State Schools Credit Union______ _InTouch Credit Union___

6. Basic services: Savings Account: A place to deposit money you don’t plan to spend right away. Minimum amount required. ($ amt. depends on bank/c.u.) No penalty for taking money out of this account. Can do this directly or @ an ATM. Bank/CU pays you a SMALL amount of interest on the money you have in this account. Insured for up to $250,000 by the FDIC & NCUA (aka, gov’t).

7. Checking Account: A place to hold your spending money (can be safer than carrying cash). Tied to your savings account. Some have a minimum balance requirement. Banks sometimes charge a fee for checking accounts, because check processing is costly. Bank sends you a monthly statement of all transactions associated with the account, and you can use that record if ever need to prove that you’ve made a payment. Can also access at any time online.

8. Checking Account: W/draw cash @ ATM or in person Checks – it’s like an “IOU”. Doesn’t get deducted from your account until the check is taken to the bank. (BE CAREFUL!) Debit Card When run as a DEBIT – automatically deducted from checking account. When run as CREDIT – 1-3 days before deducted from checking account.

9. Checking Account: No penalty for taking $ out (as long as you don’t OVERDRAFT). Overdraft – to spend more money than you have in your checking account. Some banks will transfer money from savings account or credit card to cover the cost at NO CHARGE. MOST will charge a fee (average $27 per purchase!). Federal Law requires that you “opt in”. If you aren’t good at watching your money DON’T OPT IN!!!

10. You don’t need lots of money to start a savings account. Some banks let you open one with as little as $20. You don’t need to wait until you are 18 years old. In most cases, you can open a savings account as soon as you are old enough to sign your name, or even earlier than that if you open the account with a parent or guardian.

11. Do you know how to fill out a check? Tips: Always use ink. Write description in memo line Keep unused checks secure. Get the checks with a carbon copy. – This lets you keep a copy of every check you write too. If you mess up or cancel a check, write VOID across it in large letters. Always shred checks.

12. Do you know how to fill out a check? Tips: Always use ink. Write description in memo line Keep unused checks secure. Get the checks with a carbon copy. – This lets you keep a copy of every check you write too. If you mess up or cancel a check, write VOID across it in large letters. Always shred checks. Who is money going to? Fifty dollars and 83/100 -------------- 50.83 What did you buy? Your signature.

13. Why use a checking account instead of cash only? Convenience – Don’t always have to have cash on you. Safety – Less likely to get mugged? Easier to budget – Banking websites keep track of debit transactions for you, don’t need to keep every receipt. Proof of Payment – May be needed when disputing charges. DIRECT DEPOSIT! You can have your employer deposit money into your checking account automatically!!! Pre-Authorized Transactions – Move money to savings account!

14. Sometimes you will have to fill out a DEPOSIT SLIP when you go to the bank.

15. Other services: Lines of Credit: Mortgage (Home Loan) Auto Loan Credit Card Investment Accounts: CDs (Certificate of Deposit) Money Market Account

17. Your Assignment: MBA Section 4-2/ 3-8, 21 – 24 all MBA Section 5-3/ 1 – 11 all