Activity 1…….Where Do I Keep My Money?
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Activity 1…….Where Do I Keep My Money? Activity 2…….Evaluating Financial Services Activity 3…….Banks, Yesterday and Today. Introduction to Financial Services - Activity 1. ACTIVITY 1 Where Do I Keep My Money? Overview • The functions of banks • The cost of alternative financial services

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Introduction to financial services activity 1
Introduction to Financial Services - Activity 1

ACTIVITY 1

Where Do I Keep My Money?

Overview

• The functions of banks

• The cost of alternative financial services

• The stability of banks

2


Slide 1 - Places to Save MoneyLesson Reference: Introduction to Financial Services, Activity 2 – Overhead 1

  • PLACES TO SAVE MONEY

  • Would you save your money in any of these places? Why? Why not? Can you think of other places to save money?

    • Bed & Mattress

    • Cookie Jar

    • Pillow

    • Wallet

    • Money Belt

    • Small House Safe

3


Slide 2 - Alternative Financial Services Lesson Reference: Introduction to Financial Services, Activity 1 – Handout 1

  • ALTERNATIVE FINANCIAL SERVICES

  • Check-Cashing Services

  • Check-Deferrals, Cash Advances, Payday Loans

  • Pawn Shops

  • Rapid Tax Refunds

  • Rent-to-Own

  • Other Financial Services

4


Slide 3 fdic lesson reference introduction to financial services activity 1 overhead 2
Slide 3 – FDIC Lesson Reference: Introduction to Financial Services, Activity 1 – Overhead 2

  • FEDERAL DEPOSIT INSURANCE

  • CORPORATION (FDIC)

  • Established in 1933.

  • Insures most Savings, Checking,

  • and other Deposit Accounts, up to $100,000 per depositor,

  • per institution.

  • Applies to most Commercial Banks, Savings Banks, and

  • Savings Associations.

5


ACTIVITY 2Evaluating Financial Services

  • Overview

  • Formal and informal financial services

  • Costs of alternative financial services and average bank accounts

  • Advantages of establishing a banking relationship

6

Introduction to Financial Services – Activity 2


  • FORMALFINANCIAL SERVICES

  • Accounts

  • Credit cards

  • Loans

  • Investment vehicles

  • Direct deposit

  • Wire transfers/ remittances

  • INFORMAL

  • FINANCIAL

  • SERVICES

  • Payday lenders

  • Check cashing services

  • Rent-to-own stores

  • Pawn shops

  • Title lenders

  • Loans from family/friends

  • Cultural savings clubs

  • Remittances offered through nonfinancial institutions

7

Slide 1 – Formal and Informal Financial Services Lesson Reference: Introduction to Financial Services, Activity 2 – Overhead 1


HOW A BANK CAN SAVE YOU MONEY

Monthly Fees without a Bank Monthly Fees with a Bank*

  • $0 to directly deposit paycheck

  • $0 to get cash from bank's ATMs or make debit card purchase

  • $0 to pay monthly bills using electronic bill payment

  • $5 to send money to family

  • Monthly cost: $5.00

  • Annual cost: $60.00

  • $80 to cash paychecks

  • $3.81 on money orders and stamps to pay bills

  • $15 to send money to family with a wire transfer company

  • Monthly cost: $98.81

  • Annual cost: $1,185.72

Annual Savings by Using a Bank: $1,125.72

8

Slide 2 – How a Bank Can Save You Money Lesson Reference: Introduction to Financial Services, Activity 2 – Handout 2


ADVANTAGES OF ESTABLISHING A BANKING RELATIONSHIP

Nearly everyone needs a bank account to help manage his or her day-to-day money.

Bank accounts can help you to:

• Pay bills

• Manage your money

• Receive money

• Send money to a friend or family member

• Keep your money secure

• Start building wealth

• Earn interest

9

Slide 3 – Advantages of a Banking Relationship Lesson Reference: Introduction to Financial Services, Activity 2 – Overhead 2


Introduction to financial services activity 3
Introduction to Financial Services - Activity 3

ACTIVITY 3Banks, Yesterdayand Today

Overview

  • The many traditional financial services provided by a bank

  • Other expanded financial services provided by a bank

  • The impact of banks throughout the community

10


Slide 1 - Traditional Services of Banks Lesson Reference: Introduction to Financial Services, Activity 3 – Overhead 1

  • TRADITIONAL

  • SERVICES

  • OF BANKS

  • Checking Accounts

  • Savings Accounts

  • CDs (Certificates of Deposit)

  • Savings Bonds

  • Loans

    • Car

    • Home

    • Personal

  • Safe Deposit Boxes

11


Slide 2 - Expanded Services of Banks Lesson Reference: Introduction to Financial Services, Activity 3 – Overhead 2

  • TRADITIONAL

  • SERVICES

  • OF BANKS

  • Checking Accounts

  • Savings Accounts

  • CDs (Certificates of Deposit)

  • Savings Bonds

  • Loans

    • Car

    • Home

    • Personal

  • Safe Deposit Boxes

  • EXPANDED

  • SERVICES

  • OF BANKS

  • Insurance Sales

  • Small Business Advising and Loans

  • Investments

  • Credit Cards

  • Remittances

12


Slide 3 - Financial Services Modernization Act Lesson Reference: Introduction to Financial Services, Activity 3 – Overhead 3

  • FINANCIAL SERVICES

  • MODERNIZATION ACT (1999)

  • Transformed the banking industry. Eliminated many

  • restrictions among companies in the securities,

  • banking, and insurance industries.

  • Results?

  • Banks may offer some insurance and investment services.

  • Investment and insurance companies may offer some traditional banking services. Investments are not insured by FDIC.

13


Slide 4 - Some Community-Related Services Lesson Reference: Introduction to Financial Services, Activity 3 – Overhead 4

  • SOME COMMUNITY-RELATED

  • SERVICES OF BANKS

  • Bank employees mentor students in areas of basic financial skills.

  • Bank employees serve on community organizations’ boards of directors.

  • Banks provide scholarships to students going into the banking profession.

  • Banks fund affordable housing construction.

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