1 / 30

Chapter 14

Banking. Chapter 14. What types of financial services might help you to better manage your cash flows?. Banking. Chapter 14. Understanding the services provided by financial institutions will help you choose the best options to manage your money wisely. Banking. Chapter 14.

knox-santana
Download Presentation

Chapter 14

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Banking Chapter 14 What types of financial services might help you to better manage your cash flows?

  2. Banking Chapter 14 Understanding the services provided by financial institutions will help you choose the best options to manage your money wisely.

  3. Banking Chapter 14 • direct deposit • automated teller machine (ATM) • debit card • commercial bank • savings and loan association (S&L) • credit union • certificate of deposit (CD) • money market account • rate of return • compounding • annual percentage yield (APY) • overdraft protection • stop-payment • endorsement • bank reconciliation

  4. Banking Chapter 14

  5. Banking Chapter 14 Section 1 Financial Services and Institutions • Identify types of financial services. • Describe the various types of financial institutions. • Describe problematic financial businesses.

  6. Banking Chapter 14 Section 1 Financial Services and Institutions How to Manage Your Cash

  7. Banking Chapter 14 Section 1 Financial Services and Institutions Types of Financial Services PaymentServices Savings Categories of Financial Services Other Financial Institutions Borrowing

  8. Banking Chapter 14 Section 1 Financial Services and Institutions Electronic Banking Services AutomaticPayments With authorization, funds are withdrawn from your account Make sure there are sufficient funds in your account Check your bank statement to make sure the transfer is correct

  9. Banking Chapter 14 Section 1 Financial Services and Institutions Electronic Banking Services Plastic Payments Electronic payments Online payments Stored-value cards Smart cards

  10. Banking Chapter 14 Section 1 Financial Services and Institutions Evaluating Financial Services Questions to Ask Is it worth opening a checking account that has no fees—but does not earn interest, if you must keep a minimum balance? Would you trade the convenience of getting cash from the ATM near your office for lower ATM fees? Is a higher interest rate on a certificate of deposit worth giving up liquidity?

  11. Banking Chapter 14 Section 1 Financial Services and Institutions Types of Financial Institutions Non-Depository Institutions Life Insurance Companies Investment Companies Finance Companies

  12. Banking Chapter 14 Section 1 Financial Services and Institutions Problematic Financial Businesses Be Careful of These Financial Businesses PawnShops PaydayLoans CheckCashingOutlets Rent-to-OwnCenters

  13. Banking Chapter 14 Section 1 Financial Services and Institutions Comparing Financial Institutions • Where can you get the highest rate of interest on your savings? • Where can you obtain a checking account with low (or no) fees? • Will you be able to borrow money from the institution—with a credit card or another type of loan—when you need it? • Do you need an institution that offers free financial advice? • Is the institution FDIC- or SAIF-insured? • Does the institution have convenient locations? • Does it have online banking services? • Does it have any special banking services that you might need?

  14. Banking Chapter 14 Section 1 Financial Services and Institutions Comparing Financial Institutions

  15. Banking Chapter 14 Section 1 Financial Services and Institutions Analyze why it might be worth a person’s time to open a checking or savings account at a bank rather than using a check-cashing outlet. Answers may vary but the students should realize that many banks offer free checking or savings accounts meaning you can cash a check for free.

  16. Banking Chapter 14 Section 2 Savings Plans and Payment Methods • Compare the costs and benefits of different savings plans. • Explain features of different savings plans. • Compare the costs and benefits of different types of checking accounts. • Use a checking account effectively.

  17. Banking Chapter 14 Section 2 Savings Plans and Payment Methods Types of Savings Plans

  18. Banking Chapter 14 Section 2 Savings Plans and Payment Methods Types of Savings Plans You can purchase Series EE Savings Bonds from the federal government.

  19. Banking Chapter 14 Section 2 Savings Plans and Payment Methods Types of Checking Accounts Checking Accounts Regular Checking Accounts Interest-Earning Accounts Activity Accounts

  20. Banking Chapter 14 Section 2 Savings Plans and Payment Methods Using a Checking Account Check Register

  21. Banking Chapter 14 Section 2 Savings Plans and Payment Methods Using a Checking Account

  22. Banking Chapter 14 Section 2 Savings Plans and Payment Methods Using a Checking Account Information on Your Bank Statement Deposits Checks You Have Written ATM Withdrawals Debit Withdrawals Interest Earned and Fees

  23. Banking Chapter 14 Section 2 Savings Plans and Payment Methods Using a Checking Account Organizations

  24. Banking Chapter 14 Section 2 Savings Plans and Payment Methods Financial Institutions and Your Money Banks make money by making loans.The amount of money a bank can lend is affected by the reserve requirement set by the Federal Reserve.

  25. Banking Chapter 14 Section 2 Savings Plans and Payment Methods Consider whether you would prefer to have a separate checking and savings account, or an interest-earning checking account. Explain your decision. Sample answer: separate accounts, to avoid a minimum balance or for higher interest rates.

  26. Banking Chapter 14 The Federal Reserve System The Fed has the responsibility of monitoring the economy.

  27. Banking Chapter 14

  28. Banking Chapter 14

  29. End of

More Related