1. 2/3/14
“Checking accounts”
After doing your research, which bank would you choose to open a checking account with & why?
On desk: (C-block) Checking account research wksht.

2. 2/3/14
Econ. Agenda
Savings Accounts (class notes)
Research savings accounts
HW: Savings Accounts research

3. 2/3/14 Class Notes – Saving accounts
You want to go on a week-long vacation to California on August 1st, and you’ve figured out it will cost a total of $1,500. How much do you have to save each month from now until then in order to be able to go on your trip?

4. 2/3/14 Class Notes – Savings accounts
Why save your money?
You save for larger purchases: house, car, college, babies…
Emergencies: hospital, parents get sick, natural disasters…
Starting a business or investing in a company
Retirement
Vacations & dreams!!

5. 2/3/14 Class Notes – Savings accounts
How to save your money:
Important expense every time you get paid should be PYF (Pay Yourself First)
PYF = every time you get paid, you should put some amount in savings
Can be $5, $10, $20…..or a certain percentage of your income – it will add up very quickly!

6. Saving Accounts Checking Accounts
Class Notes What is the difference between checking & savings accounts?
Saving Accounts
$$ you deposit in bank for long-term to SAVE
Allows withdrawals, but may have transaction limitations
(Only certain number of withdrawals allowed per month)
Bank pays you interest for keeping money in bank!!
Checking Accounts
$$ you deposit in bank for short-term to SPEND
Allows withdrawals (usually unlimited)

7. What do banks do with your money?
Banks loan $$
Banks use your $$
Businesses borrow $$ from bank to build more stores
CVS pays back Bank, Bank pays you (interest)

8. 2/3/14 Class Notes – Savings accounts
Annual Percentage Yield (APY):
How much interest bank will pay you in one year!
Given as a percentage of your average balance.
Example: APY = 0.2%, Balance = $5,000
Interest earned = (0.002)(5,000) = $10
Interest rates can be fixed or variable
Fixed = rate stays the same
Variable = rate fluctuates

9. 2/3/14
To- Do:
Research 2 different savings accounts
Based on your research, which bank would you choose to open accounts in & why?