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2/3/14 “Checking accounts”

2/3/14 “Checking accounts” After doing your research, which bank would you choose to open a checking account with & why? On desk : (C-block ) Checking account research wksht. 2/3/14 Econ. Agenda Savings Accounts (class notes) Research savings accounts HW: Savings Accounts research.

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2/3/14 “Checking accounts”

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  1. 2/3/14 • “Checking accounts” • After doing your research, which bank would you choose to open a checking account with & why? • On desk: (C-block) Checking account research wksht.

  2. 2/3/14 Econ. Agenda Savings Accounts (class notes) Research savings accounts HW: Savings Accounts research

  3. 2/3/14 Class Notes – Saving accounts You want to go on a week-long vacation to California on August 1st, and you’ve figured out it will cost a total of $1,500. How much do you have to save each month from now until then in order to be able to go on your trip?

  4. 2/3/14 Class Notes – Savings accounts • Why save your money? • You save for larger purchases: house, car, college, babies… • Emergencies: hospital, parents get sick, natural disasters… • Starting a business or investing in a company • Retirement • Vacations & dreams!!

  5. 2/3/14 Class Notes – Savings accounts • How to save your money: • Important expense every time you get paidshould be PYF (Pay Yourself First) • PYF = every time you get paid, you should put some amount in savings • Can be $5, $10, $20…..or a certain percentage of your income – it will add up very quickly!

  6. Checking Accounts $$ you deposit in bank for short-term to SPEND Allows withdrawals (usually unlimited) Saving Accounts $$ you deposit in bank for long-term to SAVE Allows withdrawals, but may have transaction limitations (Only certain number of withdrawals allowed per month) Bank pays you interest for keeping money in bank!! Class NotesWhat is the difference between checking & savings accounts?

  7. What do banks do with your money? • Banks loan $$ Banks use your $$ Businesses borrow $$ from bank to build more stores CVS pays back Bank, Bank pays you (interest)

  8. 2/3/14 Class Notes – Savings accounts • Annual Percentage Yield (APY): • How much interest bank will pay you in one year! • Given as a percentage of your average balance. • Example: APY = 0.2%, Balance = $5,000 • Interest earned = (0.002)(5,000) = $10 • Interest rates can be fixed or variable • Fixed = rate stays the same • Variable = rate fluctuates

  9. 2/3/14 • To- Do: • Research 2 different savings accounts • Based on your research, which bank would you choose to open accounts in & why?

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