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Steve Artis Matthew Onstad Tina Orellana Kevin Rishko Logix Federal Credit Union Smarter Banking 1.

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Presentation on theme: "Steve Artis Matthew Onstad Tina Orellana Kevin Rishko Logix Federal Credit Union Smarter Banking 1."— Presentation transcript:

1 Steve Artis Matthew Onstad Tina Orellana Kevin Rishko Logix Federal Credit Union Smarter Banking 1

2 Agenda Understanding Terms Basic Checking Saving Money Credit & Loans Buy now pay later

3 Terms Checking Account – An account where the focus is placed on using the money to pay for other things Savings Account - An account where the focus is placed on saving money rather than taking it out 3

4 Terms Credit Card - A credit card is a payment card issued to a person for purchasing goods and services and obtaining cash against a line of credit established by the issuer Loan- A loan is a thing that is borrowed, esp. a sum of money that is expected to be paid back with interest Budget – A plan of how much you need to spend and save each month to reach your goals 4

5 Checking Accounts Convenient Access Checks, Debit Cards Electronic Services Keep track of how much you deposit and how much you spend – know how much you have in your account! Monthly Charges & Usage Fees Overdraft Protection Subtract service fees and usage charges Processing Policies Checks as Records/Receipts Record transactions Check bank statements for mistakes 5

6 Writing Checks What are the major parts of a check? 6

7 Balancing your book Each student starts with $150 Every Friday, you receive $50 for allowance You can choose to spend the money or save How much do you have at the end of 3 weeks? You cant borrow from your parents Week 1: – Starbucks-$10 – Movies-$15 – Lunch out daily-$30 – Dinner at the game-$15 Week 2: – Friend needs a B-day gift-$35 – Lunch out daily-$30 – Starbucks-$10 – Concert time-$75 – Extra Chores for +$30 but cant go to the movies Week 3: – Starbucks again-$10 – Lunch out daily-$30 – New Video game-$50 – Its your B-day and you get $75 – Going to the big game-$20 – You break your phone-$300 7

8 Savings Facts The average American family has about $3800 in savings 40% of Americans not saving for retirement Only 18% of Americans confident about having enough saved for retirement 8

9 Savings Accounts Share Savings: reports transactions monthly Money Market: typically require minimum balance and offer higher interest rates Certificate Accounts: pay higher interest rates based upon agreement to leave a specific amount in the account for a set amount of time 401k retirement plans and IRAs: an opportunity to save with taxes being deferred. Can be through employer or on your own 9

10 How saving adds up! How Much to save in 6 months for that $500 I- Pad? –A month _____? –A week _____? –A day _____? 10

11 Long Term Savings Rich Moore –Saving $3,000 a year starting at 19 –Stopped at age 26 (8 years) –At 60, has deposited $24,000 but actually has $964,129 Les Little –Saving $3,000 a year starting at 27 –Stopped at 60 (34 years) –Has deposited $102,000 but only has $810,073 11

12 The Rule of 72 How can you double your money? 12

13 Savings Vs. Checking Checking? –* Savings? – * 13

14 Budgeting How much money do you have each week? Balance vs. Available-pending withdrawals Use your computer, smartphone, phone to check balances before spending –Use text alerts Are you looking to save for something specific? –Car? –Play-Station? –College? Can you afford an emergency? How much should you save? 14

15 Credit Credit allows individuals to use money they currently dont have –Allows for more manageable monthly payments on large purchases like homes and cars Good credit allows for lower interest rates so saves you money –On a $20,000 car loan, 1.95% means a payment of $350 and 7.99% means a payment of $403 (or $3,180 more over 5 years) Be aware of the fees Be aware of the interest –Dont make the minimum payment on credit cards Balance $500, Min payment $15, interest rate 15%, will take 3.7 years to payoff and $151 in additional fees Credit is important not only for the purposes of lower fees and rates but for jobs and renting-Can start at age 18 15

16 Links Balance a checking account tools –https://www.balancepro.net/checking/index.htmlhttps://www.balancepro.net/checking/index.html Checking account education –http://www.balancetrack.org/checking/index.htmlhttp://www.balancetrack.org/checking/index.html Teens and Money –http://www.balancetrack.org/teensandmoney/index.ht mlhttp://www.balancetrack.org/teensandmoney/index.ht ml 16

17 Questions? 17


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