1. Banking Services

2. Materials Needed Story 9-1 “Banking Services”

3. You will…. Review your own needs for banking sevices Research local financial institutions to find the services available that could meet your needs By examining a variety of stimulated and real banking services, you will learn how to access and analyze information about financial products you will need in your transition from secondary school.

4. After this presentation you will be able to…. Describe a variety of banking services offered by financial institutions Access and analyze information about banking services related to their transition from secondary school Describe how to keep financial records secure to avoid the risk of identity theft

5. Discussion Financial institutions often pay interest on the money that you deposit in these accounts The accounts are a very secure way of holding money The accounts allow you to use cheques and debit cards to pay for goods and services you buy The accounts have an effective recordkeeping system for deposits and withdrawls

6. Discussion cont’d.. Banks and trust companies are businesses that exist in order to make profits for their owners Credit unions run on similar principles but their owners are their depositors, or members Financial institutions make money by accepting deposits and lending or investing the deposits in other profit-making activities Financial institutions pay interest to depositors for the right to hold and use the depositors’ money

7. Questions Why would someone choose one financial institution over another? The services offers vary form one institution to another, as do the fees charged, so you should research the features, service charges and convenience of several institutions to find the one that meets your needs Rates vary among financial institutions for competitive and business reasons, including: Lower operating costs as a result of more efficient business operations or provision of fewer services The need to attract deposits to carry out business plans More restrictions on deposits The perception among customers that the institution is less ‘secure’.

8. Questions Why people need a variety of banking services? (people’s needs vary depending on their financial, employment, family and other conditions) Do you use services from a bank, credit union or trust company, what types of services do you use and why did you choose that institution.

9. Discussion Question: Have you ever heard of a bank failure and what it is? A “failure” occurs when an institution becomes insolvent, that is when it can’t meet its financial obligations as they come due, and it may be unable to repay its depositors Canada has a deposit insurance system, in which government organizations arrange to repay many types of deposits if an insured institution fails, including:

10. Deposits in banks and trust companies to a maximum of $60,000 per depositor when the funds are held in an eligible account with a member of the Canadian Deposit Insurance Corporation (CDIC) Deposits in credit unions in BC to a maximum of $100,000 per depositor when the funds are held in an eligible account with a member of the Credit Union Deposit Insurance Corporation (CUDIC) The banking system is carefully regulated to protect depositors, so most accounts are very secure compared with those in many other countries.

11. Handout 9-1 “Your Guide to Banking Services” Have students work in pairs to identify the banking services they would need for their own use and answer the first two questions on the handout

12. Handout 9-2 “Banking Checklist for Youth” Students will work in pairs to complete the assignment to research the services and costs of a bank, credit union or trust company in their community Ensure that the class researches a variety of different institutions, including banks, trust companies, credit unions and online banks Students report the findings to the class and use the research to make a summary chart comparing the banking services on a board or poster, or in an electronic spreadsheet

13. Questions Which services will be most useful to you when you leave secondary school? Which financial institutions offer the best interest rates? Which institutions offers the lowest fees? Which institutions offer student loans? Which institutions offer free services or reduced charges for students or youth? Which institutions offer services without a parent’s signature? Which institutions would be most useful if you were to leave the community to go to a job or go to school?