1. Do Now: Where do your parents/families bank? Why? Aim: What is the difference between a savings and a checking account?

2. Common Accounts…  Savings: You deposit money that you plan to leave there for an extended period of time.  Checking: You deposit money to use debit/ATM cards to make purchases, withdraw money, make online payments and write checks.

3. Savings accounts  Saving means putting money aside for a future use.  Offer interest incentives for people to keep their savings in savings accounts  The amount of interest people will earn depends on: 1.The financial institution 2.The type of savings account they have 3.The amount they deposit 4.Time

4. Checking accounts  Write checks against the balance you hold in your account, as well as access your money through an (ATM) using a DEBIT card.  It is a functional account best used for everyday expenses  Most banks offer various types of checking accounts to choose from.

5. Account Differences… Savings Account Earns interest Money is less available than checking Lower account balance requirements than most checking accounts Checking Accounts Money available on demand Designed for frequent transactions May have associated monthly fees *May earn interest

6. SAVINGS ACCOUNT  Money will grow because of interest  Planning: Useful aid in setting aside money for future emergencies or for upcoming purchases.  Harder to touch: the money is not as accessible as when its in your checking account CHECKING ACCOUNT  Budgeting : makes it easy to check your monthly expenditures and set a budget, since you get a list of all your transactions every month.  Convenience : availability of ATM, Debit Card and Checks  Safety: Don’t need to carry a big wad of cash in your pocket  Proof of payment