1. Chapter 4 In-Class Notes

2. Background on Money Management Money management: describes the decisions you make over a short-term period regarding income and expenses Liquidity: refers to your access to ready cash to cover short-term and unexpected expenses: Chequing and savings accounts Credit cards and lines of credit Emergency funds 4-2Copyright © 2009 Pearson Education Canada

3. Types of Financial Institutions Depository Institutions Chartered banks Trust and loan companies Credit unions and caisses populaires Non-depository Institutions Finance and lease companies Mortgage companies and investment dealers Insurance companies and mutual fund companies Payday loan companies, cheque cashing outlets, and pawnshops Financial Conglomerates 4-3Copyright © 2009 Pearson Education Canada

4. Banking Services Offered by Financial Institutions Chequing services Cheque float Credit card financing Debit cards Safety deposit boxes Automated banking machines (ABMs) Certified cheques Money orders and drafts Traveller’s cheques 4-4Copyright © 2009 Pearson Education Canada

5. Selecting a Financial Institution Select your financial institution based on: Convenience Deposit rates and insurance Fees 4-5Copyright © 2009 Pearson Education Canada

6. Savings Alternatives Offered by Financial Institutions Common investment alternatives include: Savings deposits Term deposits Guaranteed investment certificates (GICs) Canada Savings Bonds (CSBs) Money market funds (MMFs) 4-6Copyright © 2009 Pearson Education Canada