1. © 2003 SOUTH-WESTERN PUBLISHINGCHAPTER 23Slide 1 CHAPTER 23 BANKING AND CREDIT 23.1Financial Institutions 23.2Checking Accounts 23.3Credit and Its Use LESSONS

2. © 2003 SOUTH-WESTERN PUBLISHINGCHAPTER 23Slide 2 LESSON 23.1 FINANCIAL INSTITUTIONS Name and describe the four major types of financial institutions Discuss how electronic banking may change money management OBJECTIVES

3. © 2003 SOUTH-WESTERN PUBLISHINGCHAPTER 23Slide 3 TYPES OF INSTITUTIONS AND SERVICES  Commercial banks  Mutual savings banks  Savings and loan associations  Credit unions Lesson 23.1

4. © 2003 SOUTH-WESTERN PUBLISHINGCHAPTER 23Slide 4 ELECTRONIC BANKING  Automated teller machines (ATMs)  Telephone banking systems  Computer banking systems  Direct deposit or withdrawals  Point-of-sale transfers Lesson 23.1

5. © 2003 SOUTH-WESTERN PUBLISHINGCHAPTER 23Slide 5 DEBIT CARD A debit card is a plastic card used to immediately transfer funds for a purchase from a bank account to a seller. Lesson 23.1

6. © 2003 SOUTH-WESTERN PUBLISHINGCHAPTER 23Slide 6 LESSON 23.2 CHECKING ACCOUNTS Describe types of checking accounts and how to open an account Illustrate how to write and endorse a check, maintain a check register, make a deposit, and reconcile a bank statement OBJECTIVES

7. © 2003 SOUTH-WESTERN PUBLISHINGCHAPTER 23Slide 7 UNDERSTANDING CHECKING ACCOUNTS  Checks provide a safe and convenient way to pay bills.  Checks can be used as freely as cash.  Using checks makes it easier to keep good financial records. Lesson 23.2

8. © 2003 SOUTH-WESTERN PUBLISHINGCHAPTER 23Slide 8 TYPES OF CHECKING ACCOUNTS  Regular checking account  Special checking account  Negotiable order of withdrawal (NOW) account  Share draft account Lesson 23.2

9. © 2003 SOUTH-WESTERN PUBLISHINGCHAPTER 23Slide 9 OPENING A CHECKING ACCOUNT  Signature card  Initial deposit Lesson 23.2

10. © 2003 SOUTH-WESTERN PUBLISHINGCHAPTER 23Slide 10 WRITING A CHECK  Date  Payee  Numerical amount  Written amount  Purpose or account number  Signature Lesson 23.2

11. © 2003 SOUTH-WESTERN PUBLISHINGCHAPTER 23Slide 11 KEEPING A CHECK REGISTER A check register is used to record checks written, deposits made, and other transactions. Lesson 23.2

12. © 2003 SOUTH-WESTERN PUBLISHINGCHAPTER 23Slide 12 ENDORSING A CHECK An endorsement is your signature, sometimes with a brief message, on the back/left side of a check.  Blank endorsement  Restrictive endorsement  Full endorsement Lesson 23.2

13. © 2003 SOUTH-WESTERN PUBLISHINGCHAPTER 23Slide 13 MAKING A DEPOSIT The process of putting money into a checking account is known as making a deposit. Lesson 23.2

14. © 2003 SOUTH-WESTERN PUBLISHINGCHAPTER 23Slide 14 MONTHLY STATEMENT  The amount of each check and the date the bank received it  The deposits you made  Any service charges  Any interest earned  Beginning and ending balances Lesson 23.2

15. © 2003 SOUTH-WESTERN PUBLISHINGCHAPTER 23Slide 15 BALANCING A CHECKBOOK  Comparing the bank statement with your check register is known as balancing (or reconciling) a checkbook.  Balancing a checkbook ensures that both you and your bank have recorded all the activity on your account correctly.  Instructions on how to balance your account are usually printed on the back of the statement. Lesson 23.2

16. © 2003 SOUTH-WESTERN PUBLISHINGCHAPTER 23Slide 16 LESSON 23.3 CREDIT AND ITS USE Name and describe the two basic types of credit Calculate the cost of credit OBJECTIVES

17. © 2003 SOUTH-WESTERN PUBLISHINGCHAPTER 23Slide 17 CREDIT Credit refers to the receipt of money, goods, or services in exchange for a promise to pay. Lesson 23.2

18. © 2003 SOUTH-WESTERN PUBLISHINGCHAPTER 23Slide 18 TYPES OF CREDIT  Loan credit  Sales credit Lesson 23.2

19. © 2003 SOUTH-WESTERN PUBLISHINGCHAPTER 23Slide 19 THE COST OF CREDIT  The finance charge is the total dollar amount you pay for using credit.  The annual percentage rate (APR) is the percentage cost of credit on a yearly basis. Lesson 23.2

20. © 2003 SOUTH-WESTERN PUBLISHINGCHAPTER 23Slide 20 WORKING Career Success for the 21 st Century by Larry J. Bailey Click on the title below to view the presentation for the next chapter. CHAPTER 24 BUDGETING, SAVING, AND INVESTING MONEY