1. Benefits of Banks: Opening and Managing Savings and Checking Accounts Glow Foundation 2010

2. Page 2 Icebreaker!

3. Page 3 Group Agreements

4. Page 4 Pre-Assessment (30 minutes)

5. Page 5 What We Will Discuss Today  Benefits of Banking  Savings Accounts (Opening an Account, Interest, Tips)  Checking Accounts (Parts of a Check, Filling out a Check and Deposit Slip)  Using a Debit / ATM Card  Tracking Your Spending  Protect Yourself from Fraud!

6. Page 6 Benefits of a Bank DISCUSSION: 1.Why would someone decide to open a bank account? 2.What are some benefits of a bank?

7. Page 7 Benefits of a Bank 1.Safety (theft, fire, etc.) 2.Convenience 3.Saves Money (avoids check cashing fees) 4.Security (FDIC insured) 5.Advice of Banking Professionals

8. Page 8 Savings Account Basics What is a Savings Account?

9. Page 9 Savings Account Basics Regular SavingsMoney MarketCertificate of Deposit (CDs)  Minimum Balance  Usually a minimum balance of at least $1000  Deposit a certain amount of money – requires a minimum amount  Low Interest rates - variable  Usually pays more interest than regular savings (variable)  Higher interest rate than a regular savings account (usually fixed)  Limited number of withdrawals – sometimes charged a fee  Usually can make limited amount of withdrawals with checks - convenient  No withdrawals - will be penalized if you withdraw money before specified date  Readily accessible  No minimum length of time to have money deposited  Requires money to be deposited for a certain amount of time  Insured  Not always insured  Insured

10. Page 10 Savings Account Basics Financial Feud

11. Page 11 Savings Account Basics What should you consider before opening up a savings account? How Frequently Interest is Compounded (25) Minimum Balance (15) Service Fees (9) Convenience (6) Interest Rate (45) 1 2 3 4 5

12. Page 12 Savings Account Basics What is Compound Interest? QuarterAmount in Account InterestTotal amount 1$1000.001.25%($1000*.0125) + 1000 = $1012.50 21012.501.25%(1012.50*.0125) + 1012.50 = 1025.16 31025.161.25%(1025.16*.0125) + 1025.16 = 1037.97 41037.971.25%(1037.97*.0125) + 1037.97 = 1050.94

13. Page 13 Saving Account Basics Compare the Results: Shoebox SaverSuper Saver Year 1$1825$1871 ($46 more!) Year 5$9125$10,366 (+$1,241) Year 10$18,250$23,677 (+$5,427) Year 30$54,750$127,077 (+$72,327) Each person saved $5 a day and the Super Saver earned 5% interest compounded daily.

14. Page 14 Savings Account Basics Some tips to SAVE MORE MONEY:  Ask yourself, “Do I NEED this?”  Pay YOURSELF first before you spend any money  If you get money as a gift or a bonus, save a portion of it  Save spare change and deposit it  Pay bills on time  Avoid check cashing stores  Take lunch with you instead of eating out  Carry small amounts of cash with you  Use direct deposit  Others?

15. Page 15 Individual Development Account  Matched Savings Account for your College Education - for every $1 you save, receive $2 in matched funds up to $6,000!!  Enroll after the completion of Glow’s Financial Education Program  To be eligible, you must meet income restrictions, have a SSN or ITIN, be able to save a minimum of $20 a month.

16. Page 16 Checking Account Basics What is a Checking Account?

17. Page 17 Checking Account Basics Checking Accounts:  Keep your money safe and accessible  Help control your spending  Don’t pay interest  May require you to keep a minimum balance or do direct deposit (to avoid fees)  Checks function like cash

18. Page 18 Checking Account Basics Handout: The Parts of a Check

19. Page 19 Checking Account Basics Handout: How to Write a Check

20. Page 20 Checking Account Basics Check-Writing Tips:  Always write in blue or black ink  Write neatly  Save your receipts and record your spending in your register  Initial your (small) mistakes / VOID checks with large mistakes  Avoid writing “bad” checks - you will get fined and it’s against the law in some cases

21. Page 21 Checking Account Basics Handout: How to Endorse a Check

22. Page 22 Checking Account Basics Handout: How to Fill In a Deposit Slip

23. Page 23 ATM / Debit Cards What’s the difference between an ATM and debit card?

24. Page 24 ATM / Debit Cards ATM Cards are used to:  Deposit, withdraw, or transfer money Debit cards can do this in addition to:  Purchasing items  Online banking – pay your bills, check account balances

25. Page 25 ATM / Debit Cards What information is on your ATM / debit card? (If you have a debit card, you can examine it as we look at the parts of a debit card)

26. Page 26 ATM / Debit Cards Using an ATM Machine

27. Page 27 ATM / Debit Cards ATM / Debit Card Tips:  You may be charged a fee if you use an ATM that is operated by another bank  Know your balance available  Be aware of what you’re buying - it’s easier to spend more with plastic!  Be careful with your Personal Identification Number (PIN) – Never write it on your card  Avoid magnets – they can de-magnetize your card  Contact your bank if your card is lost or stolen!

28. Page 28 Tracking Your Spending What are some ways to track your spending and control the money you have?

29. Page 29 Tracking Your Spending 1.Save your receipts 2.Record transactions 3.Avoid over-spending 4.Review statements 5.Compare with the bank

30. Page 30 Tracking Your Spending Handout: Parts of a Check Register

31. Page 31 Tracking Your Spending What happens if you spend more money than you have in your account?

32. Page 32 Protect Yourself From Fraud Breakout: Being Safe at Home and Online

33. Page 33 Recap  Benefits of Banking  Savings Accounts (Opening an Account, Interest, Tips)  Checking Accounts (Parts of a Check, Filling out a Check and Deposit Slip)  Using a Debit / ATM Card  Tracking Your Spending  Protect Yourself from Fraud!

34. Page 34 Homework: Save your receipts for one week and bring it to the next session

35. Page 35 Questions? Alana Okamoto alana@glowfoundation.org