money banking n.
Skip this Video
Loading SlideShow in 5 Seconds..
Money & Banking PowerPoint Presentation
Download Presentation
Money & Banking

Loading in 2 Seconds...

play fullscreen
1 / 17

Money & Banking - PowerPoint PPT Presentation

  • Uploaded on

Money & Banking. What is money…. Medium of Exchange It is accepted in buying and selling goods and services. Easier than barter Store of value It can be set aside for the future and still have value Measure of Value

I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
Download Presentation

Money & Banking

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.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.

- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
what is money
What is money…
  • Medium of Exchange
    • It is accepted in buying and selling goods and services.
    • Easier than barter
  • Store of value
    • It can be set aside for the future and still have value
  • Measure of Value
    • How much is something worth? Allows for easy comparison. A$500 laptop computer is worth more than a $100 printer
characteristics of money
Characteristics of Money
  • Durability – won’t wear out or break
  • Portability – easy to carry or move
  • Divisibility – can divide in to practical sizes
  • Uniform- each unit is exactly the same (is a new pencil the same as a used pencil?)
  • Limited Supply/Hard to Counterfeit- the law of supply and demand – if anyone can get it, it has no value.
  • Acceptability- sellers agree to accept it in exchange for their product.
how does money get its value
How does money get its value?
  • Commodity – has value in and of itself
    • Wheat – I can use it to make bread or trade it to someone else who wants to make bread.
  • Specie – Coins made of silver and gold or IOUs that can be traded for silver and gold
  • Fiat – legal tender – government orders or decrees that the money has value
your turn
Your Turn
  • Evaluate a commodity as a form of money…
where to keep the money safe bank vs credit union
Where to keep the money safe???Bank vs Credit Union

A Bank is a for profit company that makes money from charging fees and lending money to its customers. Banks pay taxes. Advantages - more locations, more financial products.

A Credit Union is a non-profit cooperative owned and controlled by its members. It serves groups that have something in common, profession, neighborhood… Advantages – lower fees and better interest rates.

how do banks make
How do banks make $$$$
  • Fees charged for service
  • Loans to its customers
    • House
      • Mortgage
      • Home equity
    • Car/boat
    • Credit Cards
so how about those fees choosing an account
So how about those fees?Choosing an Account
  • FDIC insured
  • Minimum balance
  • Monthly fees
  • Free ATMS (the account provider's ATMS)
  • Check Card
  • Free online banking
  • Ability to set-up direct deposit
  • 24/7 customer service
pick your account
Pick your account….
  • Review the two documents
  • Fill in Appendix A
  • Choose an account and explain why
overdraft protection
Overdraft protection
  • $100 balance
  • Withdrawals of $120, $15, $5, $3
  • What would these cost you with overdraft allowed?
  • What would this cost with overdrafts linked to a savings or credit card?
accessing your money
Accessing your money…
  • Filling in a check…
  • Keeping your check register…
  • On-line Bill Pay…
debit v credit cards
Debit v Credit cards
  • Quick read and questions…
  • What are the advantages of using cash, credit, check, debit card?
  • What are the disadvantages of each?
protecting your identity
Protecting your identity
  • How do they do it?
  • How can you protect yourself?
  • What kinds of loans can you get…
types of loans
Types of loans…
  • Open – ended loans
    • Can borrow money over and over (credit card)
  • Closed-ended loan
    • Have ending date – 5 year, 15 year…
    • Mortgages and car loans
  • Secured loans
    • Require and asses to be used as collateral – if you default, they take your collateral
  • Unsecured loans
    • No collateral is required – generally has a higher interest rate
calculating interest
Calculating Interest

Calculating on a savings account for each year…(see packet)

Buying a car:

$15,000 car

6% APR

5 year loan

What is the Interest?

who gets the best interest rates
Who gets the best interest rates?
  • Your Credit score determines your interest rate…