1. Financial Institutions
Pay Day Loans
Commercial Bank
Credit Union
Brokerage Firm
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Financial Institutions
Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman

2. Pay Day Loans It works like this:
You want money today, but payday is a week or two away.
You write a check dated for your payday and give it to a check-cashing outlet.
You get your money, minus a fee (usually about $15 per $100 borrowed).
In two weeks, the check-cashing outlet does one of two things:
Cashes your check.
Lets you pay another fee to renew the loan for another two weeks.
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Financial Institutions
Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman

3. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Financial Institutions
Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman

4. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Financial Institutions
Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman

5. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Financial Institutions
Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman

6. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Financial Institutions
Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman

7. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Financial Institutions
Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman

8. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Financial Institutions
Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman

9. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Financial Institutions
Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman

10. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Financial Institutions
Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman

11. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Financial Institutions
Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman

12. Victim of Pay Day Loans
One young lady found out how payday loans work when she needed $200 to pay her bills.
A storefront loan office, called "Check Into Cash," let her write a check she couldn't cover and gave her $200 on the spot.
They agreed not to cash it until her next payday -- for a $38 fee.
When payday came, the $16,000-a-year hospital food service worker didn't have $200 to spare.
No problem, the payday lender said, pay another $38 and you're off the hook until next payday. A year later she had paid $1,220 in fees. And she still owed the $200.
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Financial Institutions
Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman

13. Victim of Pay Day loans
Rhonda Keller* and her two daughters experienced a financial crisis last summer that sent Rhonda looking for help from payday lenders. Rhonda fell into the payday lending debt trap - the terms of the loans she took out required her to either pay them off in less than two weeks or have $90 fees automatically debited from her bank account repeatedly. Those loans, at triple-digit APR, have cost her much more than the exorbitant fees.
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Financial Institutions
Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman

14. Victim of Pay Day loans
Sandy Hudson’s first payday loan was for $100, with an $18 fee. All she needed was a source of income and a banking account, so she walked into the shop, and walked out 15 minutes later with the loan. Sandy got caught up in the payday lending debt trap, taking out multiple loans to pay the fees on each one as they became due. At one point, she was paying $300 every two weeks for four different loans. Over a six month period, this added up to $3600,
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Financial Institutions
Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman

15. Commercial Bank Full-service financial institutions
Wide variety of services and products
Operate under state and federal laws
Usually the largest financial institutions
FDIC insured
Examples – Wells Fargo, US Bank, First Interstate Bank
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Financial Institutions
Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman

16. Commercial Bank Services
Checking Accounts
They are the only financial institution allowed to offer non-interest paying checking accounts
Savings Accounts
Safe-Deposit Boxes
Credit cards
Certificate of Deposit (CDs)
Financial Services
Investments
Loans
Mortgages
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Financial Institutions
Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman

17. Credit Union
Non-profit cooperative financial institution, member owned
Members may have a common bond such as same employer, union, location, etc.
Usually charge lower fees and loan rates and offer higher interest rates
May offer free financial counseling
NCUA insured
Examples – America First Credit Union, University of Utah Credit Union
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Financial Institutions
Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman

18. Credit Union Services Share Draft Accounts (checking)
Share Accounts (savings)
Share Certificate Accounts (CDs)
Safe-Deposit Box
Credit Card
Financial Counseling
Investment
Loan
Mortgage
Retirement Plan Account
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Financial Institutions
Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman

19. Brokerage Firm Relatively new to the marketplace Licensed institutions
Offer money management plans for investing
Provide financial assistance and advice
Monthly statements provided to track account activity
Examples – Fidelity, ING, Merrill Lynch
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Financial Institutions
Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman

20. Brokerage Firm Services
Investments
Bonds
Stocks
Mutual Funds
Financial Counseling
Real Estate Investment
Retirement Plan Accounts
**Customers can move money between accounts easily
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Financial Institutions
Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman

21. Benefits & Advantages to using Financial Institutions
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Financial Institutions
Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman

22. Benefits of Financial Institutions
Convenience
Quick and easy access to money
Different ways to access money
Teller’s window, drive-up window, automated teller machine (ATM), and electronic banking
Cost savings
Less expensive to purchase money orders and to cash checks
Other businesses may charge to cash checks
Having a checking account instead of buying money orders saves money
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Financial Institutions
Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman

23. Benefits continued Safety Security Protection from fire, theft, & loss
Money is protected by the federal government in federally insured institutions
Up to $100,000 for each depositor
Signs are displayed if institutions are insured stating:
FDIC, NCUA, or Backed by the Full Faith and Credit of the United States Government
Not all are insured – look for the sign and ask!
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Financial Institutions
Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman

24. Advantages
Using one financial institution may include these advantages:
Simplicity – having all accounts at one place can simplify banking
Relationship – establishing relationships can be beneficial when applying for loans
Lower interest rates on loans may be offered to loyal customers!
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Financial Institutions
Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman

25. Remember
Shop around for the best service, rates, products, and locations before choosing a financial institution!!!
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Financial Institutions
Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman

26. BANKING INSTITUTIONS COMPARISON PROJECT
(40 points)
Answer the questions on the assignment sheet by searching the web, visiting the institution, or calling them.
Create a poster with the logo and information from the questionnaire.
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Financial Institutions
Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman

27. BANKING INSTITUTIONS COMPARISON PROJECT
PAY DAY LOANS
Pay Day Loans
Cash Store
Affordable Loans
Check Cash Advance
Money Mart
Loans for Less
Mr. Money
Quick Loan
Utah Money Store
J & N Pawn
Loan Max
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Financial Institutions
Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman

28. BANKING INSTITUTIONS COMPARISON PROJECT
BANKS
Bank of American Fork
Barnes Bank
Brighton Bank
Celtic Bank
Chase Bank
Far West Bank
Zions Bank
Wells Fargo Bank
Frontier Bank
US Bank
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Financial Institutions
Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman

29. BANKING INSTITUTIONS COMPARISON PROJECT
CREDIT UNIONS
America First C. U.
Cyprus Credit Union
Trans West C. U.
University of Utah C. U.
Utah First C. U.
Jordan C. U.
Mt. America C. U.
Intermountain C. U.
Deseret First C. U.
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Financial Institutions
Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman

30. BANKING INSTITUTIONS COMPARISON PROJECT
BROKERAGE FIRMS (Financial Advisers)
AIG
Fidelity
ING
Merrill Lynch
Smith Barney
Waddell & Reed
Ameriprise Financial
AAA Financial Planners
Lincoln Financial Adv.
Progressive Planning
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Financial Institutions
Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman

31. The End
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Financial Institutions
Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman