1. Personal Finance
Chapter 5

2. Financial Institutions Basic Banking Concepts
Why do I need a bank?
Place to store your money and other valuables safely
Place to open a convenient checking account
Place to apply for loans
© EMC Publishing, LLC

3. Financial Institutions Kinds of Financial Institutions
Commercial banks
Savings and loans (mutual savings banks)
Credit unions
Payday lenders and check cashing companies
© EMC Publishing, LLC

4. What do you think? Discussion Is using a payday lender a good idea?
Why might someone have to use a payday lender?
Why might you need to use a check cashing company?
© EMC Publishing, LLC
© EMC Publishing, LLC

5. Which of the following is not a kind of financial institution?
Commercial bank
Savings and loan
Credit union
Retail store
Payday lender
© EMC Publishing, LLC

6. Which of the following is not a kind of financial institution?
Commercial bank
Savings and loan
Credit union
Retail store
Payday lender
© EMC Publishing, LLC

7. Financial Institutions Kinds of Financial Transactions
Deposit
Withdrawal
Debit
Credit
Transfer
Loan
ACH
Point of Sale (POS)
© EMC Publishing, LLC

8. Financial Institutions Kinds of Checking Accounts
Regular checking account
Free
Fee
Interest-earning checking account
© EMC Publishing, LLC

9. Financial Institutions Check v. Debit
Checks
delay called “float"
Debit cards
immediate
Electronic Funds Transfer (EFT)
Note: Some stores now use EFT to take funds immediately, even when using a check.
© EMC Publishing, LLC

10. Financial Institutions ATM
Automated teller machine
Fees?
© EMC Publishing, LLC

11. What do you think? Discussion
Why are more stores installing point-of-sale devices that accept debit and credit cards?
Do we still need cash today?
Will we become a cashless society soon? Why or why not?
© EMC Publishing, LLC
© EMC Publishing, LLC

12. Financial Institutions Checking Account Fees
Monthly fees
ATM fees
Online bill-paying fees
Overdraft and NSF fees
Overdraft protection
Stop-payment fees
© EMC Publishing, LLC

13. Financial Institutions Opening a Checking Account
Research financial institutions for fees
© EMC Publishing, LLC

14. Financial Institutions Opening a Checking Account
Signature authorization form
Social Security card
Driver’s license
© EMC Publishing, LLC

15. Financial Institutions Checking Account Activity
Writing a check
© EMC Publishing, LLC

16. Financial Institutions Checking Account Activity
Writing a check
Making a deposit
© EMC Publishing, LLC

17. Financial Institutions Checking Account Activity
Writing a check
Making a deposit
Reconciling your account
(advance to see example)
© EMC Publishing, LLC

18. Reconciling Account Mark checks that have cleared and deposits
that have been
recorded.
Instructor click for check marks to appear
© EMC Publishing, LLC

19. Reconciling Account Record missing checks.
Instructor click to start animation
© EMC Publishing, LLC

20. Which of the following is not a possible fee involved in financial transactions?
Checking account fee
NSF fee
Online banking fee
ATM fee
Poll tax fee
© EMC Publishing, LLC

21. Which of the following is not a possible fee involved in financial transactions?
Checking account fee
NSF fee
Online banking fee
ATM fee
Poll tax fee
© EMC Publishing, LLC

22. Financial Institutions Online Banking
© EMC Publishing, LLC

23. Financial Institutions Online Banking
Be safe when using the Internet.
Use secure sites (shttp or https) to send financial information.
Don’t use “hot spots” or WiFi to send personal information.
© EMC Publishing, LLC

24. Financial Institutions Online Banking
Registration and PINs (improve safety)
Money transfers (are convenient)
Bill pay feature
One-time vs. auto bill-pay
Fee vs. free
© EMC Publishing, LLC

25. What do you think? Discussion
How many of you have used the Internet to conduct a financial transaction?
Do you think it is safe? Why or why not?
What tips do you have for using the Internet for financial transactions?
© EMC Publishing, LLC
© EMC Publishing, LLC

26. The End
© EMC Publishing, LLC