1. Financial Literacy

2. Types of Financial Services  Savings Deposit  Payment Services Checking account  Borrowing Short-Term Long-Term

3. Electronic Banking Services  Direct Deposit  Automatic Payments  Automatic Teller Machines (ATMs) Debit Card/Cash Card  Credit Cards (Plastic Payments) Point-of-Sale Transactions

4. Types of Savings Plans  Regular Savings Accounts  Certificates of Deposit (CDs)  Money Market Accounts  U.S. Savings Bonds

5. Rate of Return  Formula: Divide Total Interest earned by the amount you deposited in the account. $1.50/50 = 3% Compounding Interest Interest paid on the original principal and on the accumulated past interest. (Interest paid on Interest) A = P(1 + r)n P: initial amount you borrow or deposit. (principal) r: rate of interest – shown as a percentage. (rate) n: number of years amount is deposited or borrowed for. A: amount of money accumulated after number of years, including interest.

6. Compounding Interest Example NP 1 (yearly)$ 10,600.00 2 (semi-annually)$ 10,609.00 4 (quarterly)$ 10,613.64 12 (monthly)$ 10,616.78 52 (weekly)$ 10,618.00 365 (daily)$ 10,618.31 Videos http://money.msn.com/how-to-invest/why-you-must-own-stocks- now.aspx?sectionid=2&uuid=41377870-1751-4de6-9371-c912223ccf14 http://www.youtube.com/watch?v=_zpGZfFbW4M&feature=related

7. Annual Percentage Yield (APY)  If the APY is 4%, the bank pays $4 interest ($100 X 4% = $4)  The higher the APY the better the return  APY helps you determine the amount you can expect to earn on your money

8. Rule of 72  How long will it take for you to double your money  Divide 72 by interest rate to get years 72/6% = 12 years 72/9% = 8 years  Divide 72 by years to get interest rate 72/4 years = 18% interest 72/12 years = 6% interest