2. NEFE High School Financial Planning Program Unit 5 – Your Money: Keeping it Safe and Secure Credit Unions and Banks For-profit companies owned by shareholders Not-for-profit institutions owned and controlled by their own customers, who are known as members Managed by a paid board of directors elected by the bank’s shareholders Managed by a member and volunteer board of directors, who are elected by other members Offer their services to everyone; anyone can become a customer Offer their services to special groups of people and may be employer-, church-, community-, or alumni-sponsored (among others); customers must qualify for credit union membership through their membership with these special groups of people Banks Credit Unions 5-A-1 321

3. NEFE High School Financial Planning Program Unit 5 – Your Money: Keeping it Safe and Secure Credit Unions and Banks Owned by shareholders; customers do not have ownership or voting privileges unless they also own stock in the bank Owned by each credit union member, who has equal ownership and one vote, regardless of how much money a member has on deposit Profits benefit a small group of stockholders Profits are returned to members in the form of lower fees and loan rates and higher interest on deposits Accounts are federally insured up to $100,000 by the Federal Deposit Insurance Corporation (FDIC) Accounts are federally insured up to $100,000 by the National Credit Union Administration (NCUA) 5-A-2 Banks Credit Unions 321

4. NEFE High School Financial Planning Program Unit 5 – Your Money: Keeping it Safe and Secure Financial Services All of these services can be found in most banks or credit unions Online Banking, Online Brokerage, Checking Accounts, Savings Accounts, Certificates of Deposit (CDs), Individual Retirement Accounts (IRAs), Savings Bonds, Credit Cards, Check Cards, Gift Cards, Payroll Cards, Commercial Prepaid Cards, Auto Loans, Boat Loans, RV Loans, Student Loans, Other Loans, Home Mortgages, Mortgage Refinance Loans, Home Equity Loans, Military Bank, Student Centers, Accessible Banking, Small Business Banking Services, Merchant Services, Home Buying, Investment Services, IRAs, Mutual Funds, 529 College Savings Plans, Life Insurance (various types), Long-Term Care Insurance, Homeowner’s Insurance, Renter’s Insurance, Condo Insurance, Auto Insurance, Supplemental Income Insurance, Foreign Currency Exchange, Traveler’s Checks, International Wire Transfers, and More 5-B

5. NEFE High School Financial Planning Program Unit 5 – Your Money: Keeping it Safe and Secure COMPARING CHECKING ACCOUNTS location branch offices; hours of operation; availability of ATMs fees monthly fees; per check fees; printing of checks; balance inquiry fees; ATM fees other charges overdraft charge; stop-payment fees; certified check fees interest rate earned; minimum deposit to earn interest; compounding method; fee charged for falling below necessary balance restrictions minimum balance; deposit insurance; holding period for deposited checks special features direct deposit; automatic payments; overdraft protection; online banking; discounts or free checking for students, seniors, or employees of certain companies

6. NEFE High School Financial Planning Program Unit 5 – Your Money: Keeping it Safe and Secure Meet the Banking System!

7. NEFE High School Financial Planning Program Unit 5 – Your Money: Keeping it Safe and Secure

8. NEFE High School Financial Planning Program Unit 5 – Your Money: Keeping it Safe and Secure When You Open a Savings Account You deposit money in the account.You deposit money in the account. You can add or take out money at any time.You can add or take out money at any time. The savings institution is allowed to use your money to invest and earn a profit.The savings institution is allowed to use your money to invest and earn a profit. You are paid a small amount of interest for depositing your money.You are paid a small amount of interest for depositing your money. Your money is insured against loss.Your money is insured against loss. 5-C

9. NEFE High School Financial Planning Program Unit 5 – Your Money: Keeping it Safe and Secure Saving for Financial Goals Using a savings account to set aside funds for your financial goals… –Takes the money you are saving out of your wallet. –Keeps it in a secure place. –Lets you keep track of what you have saved. –Earns a small amount of interest in the process. 5-D

10. Savings Deposit Exercise 5-C, Page 62 Today’s date goes here Print Your Name Here Print Your Address Here Sign Your Name Here 333333 3 x 12509 37525 7500 4 25341 2 3 4 5 7 65-E-1 5003 4 Click the numbers

11. Complete Exercise 5-C, Page 62 5-E-2 Click Here to Check Your Work

12. Savings Deposit Exercise 5-C, Page 62 Today’s date Your Name Your Address Here 54 6 - 6 78 x 10000 10000 5-E-3 Click Here to Go to the Next Slide 011-32

13. NEFE High School Financial Planning Program Unit 5 – Your Money: Keeping it Safe and Secure Checking Accounts

14. Check Details 12345987610 This is the Routing Number for your bank (used for electronic transfers of funds from your account to the payee’s account) This is your Account Number. (Note that sometimes these two numbers are the reverse of what is shown here.) This is just your check number again (see above right). Here is where you write the name of the party you are writing your check to (the payee). Be sure to write or print legibly! On the lower line, write out the amount like this. Legibly print the amount of money this check is for. Enter the date you write each check. Place to add any information you want to related to this check. Put your personal signature here. Make sure your personal information on the check is correct. Here is the number of this Check. 115-F Click the numbers

15. NEFE High School Financial Planning Program Unit 5 – Your Money: Keeping it Safe and Secure 1001/15 Fine Foods Groceries Deposit Auto1/11 1/11 23 11 Deposit to Checking Charge for Personalized Checks 200 00 20 00 23 11 200 00 156 89 156 89 Keep a Record Click Here 5-G 20 00 180 00 180 00WD123

16. NEFE High School Financial Planning Program Unit 5 – Your Money: Keeping it Safe and Secure R E V I E W Keeping a check register T O D A Y –Learn about check endorsements

17. NEFE High School Financial Planning Program Unit 5 – Your Money: Keeping it Safe and Secure Checking Accounts ENDORSEMENTS The reason you endorse a check is to either deposit it or to sign it over to someone else. When endorsing a check, you turn the check over, and sign it on the back of the check. You should sign your name exactly the same way it is written on the front of the check.

18. NEFE High School Financial Planning Program Unit 5 – Your Money: Keeping it Safe and Secure Once you turn your check over, place it so it faces up, like this:

19. NEFE High School Financial Planning Program Unit 5 – Your Money: Keeping it Safe and Secure BLANK ENDORSEMENT Sign your name the same way it appears on the front of the check. If it is spelled wrong on the front, then sign it again correctly. IMPORTANT - Do not sign your check with a blank endorsement until you are about to either cash or deposit it, otherwise someone else could potentially try to cash your check. Anyone can cash a check once you endorse a check with a blank endorsement.

20. NEFE High School Financial Planning Program Unit 5 – Your Money: Keeping it Safe and Secure BLANK ENDORSEMENT ENDORSE CHECK HERE John Smith

21. NEFE High School Financial Planning Program Unit 5 – Your Money: Keeping it Safe and Secure RESTRICTIVE ENDORSEMENT This is the safer method to endorse your check and is recommended if you are mailing or someone else is depositing your check. Before signing your check, write a phrase such as "For deposit Only", or "For deposit to account number..." and then sign your same underneath. Then the check may only be deposited to either the bank or to your specific bank account.

22. NEFE High School Financial Planning Program Unit 5 – Your Money: Keeping it Safe and Secure RESTRICTIVE ENDORSEMENT ENDORSE CHECK HERE For Deposit Only John Smith OR ENDORSE CHECK HERE For deposit to account no. 0358247 John Smith

23. NEFE High School Financial Planning Program Unit 5 – Your Money: Keeping it Safe and Secure SPECIAL ENDORSEMENT This method allows you to sign your check over to someone else (a third party) who may then deposit it or cash it. Write "Pay to the order of" and then the name of the person you are giving the check to. Then, as above, sign your name underneath. Now you can give your check to that individual.

24. NEFE High School Financial Planning Program Unit 5 – Your Money: Keeping it Safe and Secure SPECIAL ENDORSEMENT ENDORSE CHECK HERE Pay to the order of Lisa Reynolds John Smith

25. NEFE High School Financial Planning Program Unit 5 – Your Money: Keeping it Safe and Secure Lessons Today You will learn how to read and interpret a checking account statement You will also learn (time permitting) how to reconcile a checking account using a checking account statement and a check register

26. NEFE High School Financial Planning Program Unit 5 – Your Money: Keeping it Safe and Secure Reading a Bank Statement

27. NEFE High School Financial Planning Program Unit 5 – Your Money: Keeping it Safe and Secure Go to www.quia.com/pages/personalfinance408. html

28. NEFE High School Financial Planning Program Unit 5 – Your Money: Keeping it Safe and Secure Does It Balance? Reconciling your checking account statements 5-H-1 Why reconciling is important Lets you check for mistakes and checks you wrote but did not enter. Gives you a chance to subtract other charges that the financial institution may have added. Lets you add any interest that your checking account may have earned. 1 of 2

29. NEFE High School Financial Planning Program Unit 5 – Your Money: Keeping it Safe and Secure 5-H-2 Why reconciling is important Not all the checks you have written will always be shown, because they may not have been cleared by your bank or credit union. [Outstanding Checks] Uncleared checks will show up on your next statement. Does It Balance? Reconciling your checking account statements 2 of 2

30. NEFE High School Financial Planning Program Unit 5 – Your Money: Keeping it Safe and Secure Exercise 5E: Does it Balance? 1.Add interest and other deposits made but not yet entered in your checkbook balance sheet. 2.Subtract any service charge or other deductions not previously entered in your checkbook balance sheet. 3.Add deposits made but not shown on this statement. 4.Subtract checks issued and withdrawals made but not shown on the statement. 5-H-3

31. NEFE High School Financial Planning Program Unit 5 – Your Money: Keeping it Safe and Secure Checking Account Check - A written order to a bank to pay a stated amount to the person or business named on it. Demand deposit - Money on deposit in a bank that can be withdrawn at any time Canceled check - A check that bears the bank’s stamp, indicating that it has cleared Overdraft - A check written for more money than the writer’s account contains Floating a check - Intentionally writing a check on an account without sufficient funds in the hope of making a deposit before the check is cashed.

32. Parts of a Check 071000741 08 40 856 0581 581 ARDYS JOHNSON Phone: 555-0100 4250 West 18 th Avenue Chicago, IL 60601-2190 SKY CENTRAL BANK Chicago, Illinois PAY TO THE ORDER OF DOLLARS For Classroom Use Only MEMO DATE 2-74 710 $ July 1, 20-- Food Mart 36.12 Thirty-six and 12/100 groceries Ardys Johnson

33. Using Your Checking Account Writing checks Making deposits Using a checkbook register

34. Types of Checking Accounts Joint accounts - each joint owner has the full right to all the money in the account. Special accounts - for a person who writes a small number of checks each month; service fees are charged at a low flat rate per month with an additional fee for each check written Standard accounts - a monthly service fee is charged but no per-check fee; by maintaining an average minimum balance, a service fee can be avoided entirely

35. Types of Checking Accounts Interest-bearing accounts - interest is paid if an account holder maintains a certain minimum average balance each month Share accounts - offered by credit unions; a low or no average daily balance is required, and small, if any, service charge.

36. GOALS Lesson 9.2 Other Banking Services and Fees Describe various banking services other than checking accounts available to consumers. Identify services for which banks commonly charge a fee.

37. Other Banking Services Guaranteed- payment checks Money orders Debit cards Bank credit cards Automated teller machines Online banking Telephone banking Stop payment orders Safe deposit boxes Loans and trusts Financial services

38. © South-Western Educational Publishing Bank Fees Examples of bank fees Loan fee Trustee fee Check cashing fee for non-customers Per-check fee Maintenance fee Check printing fee ATM transaction fee

39. NEFE High School Financial Planning Program Unit 5 – Your Money: Keeping it Safe and Secure Debit Cards HOW TO USE A DEBIT CARD Swipe the debit card in the card reader, or give it to the clerk to swipe. Choose the “Debit” option. Enter your PIN number* Enter the amount of cash back, if desired. Money is taken directly out of your checking account, so enter the amount spent into your checking ledger. 5-J *About your PIN

40. NEFE High School Financial Planning Program Unit 5 – Your Money: Keeping it Safe and Secure Credit Cards HOW TO USE A CREDIT CARD Swipe the credit card in the card reader, or give it to the clerk to swipe. Choose the “Credit” option. Sign the receipt. Keep and save your copy of the receipt to record later in order to keep track of what you have spent. 5-K

41. NEFE High School Financial Planning Program Unit 5 – Your Money: Keeping it Safe and Secure Financial Services Trends What financial services are you using now? Are there any you are using that we have not discussed?What financial services are you using now? Are there any you are using that we have not discussed? Would you use the Internet to do your banking?Would you use the Internet to do your banking? Would you let monthly creditors like the phone company automatically deduct bill payments from your bank account?Would you let monthly creditors like the phone company automatically deduct bill payments from your bank account? Have you heard about any new financial services that interest you?Have you heard about any new financial services that interest you? 5-L

42. NEFE High School Financial Planning Program Unit 5 – Your Money: Keeping it Safe and Secure Class Activity

43. NEFE High School Financial Planning Program Unit 5 – Your Money: Keeping it Safe and Secure Identify Theft - A closer look

44. The Risks of Identity Theft IDENTITY THEFT VICTIMS COULD: Have any and all of their financial accounts invaded and emptied.Have any and all of their financial accounts invaded and emptied. Be asked to repay debts they did not incur.Be asked to repay debts they did not incur. Lose job opportunities.Lose job opportunities. Lose their good credit rating.Lose their good credit rating. Be refused loans.Be refused loans. Be sued for things they have no part of.Be sued for things they have no part of. Even be arrested for crimes they didn’t commit.Even be arrested for crimes they didn’t commit. 5-M

45. NEFE High School Financial Planning Program Unit 5 – Your Money: Keeping it Safe and Secure Phishing more phishing scams

46. 1 SCAMMED! 5-N The news of my father death, and my uncle,s involvement in an air crash in december 2002 while on a business trip to benin republic caused my mother heartfailure and other related complications of which she later died in the hospital After we have spent a lot of money on her. Before our mother died, she told us that our father deposited some money which he made from diamond sales and contracts at this bank here in Ivory Coast and that we should pray and find a trust worthy foreign business partner who would help us to transfer and invest this money in profitable business venture overseas.She told us to do this quickly so that we can leave Ivory Coast and, then settle down abroad. She gave us the bank document to prove the deposit and then told us that my father used my name as the next of kin and beneficiary to the money in the bank in the event of his death. If you are willing to assist us, please let us know immediately so that you will arrange the transfer of the money to your account with the bank. What’s Going on Here? What’s Going on Here? 2

47. NEFE High School Financial Planning Program Unit 5 – Your Money: Keeping it Safe and Secure Dealing With Deception You walk up to an ATM and a guy who appears to be waiting his turn walks up behind you. But he’s uncomfortably close—right over your shoulder—as you get ready to enter your PIN. 5-O-1 What should you do? 1 of 7

48. NEFE High School Financial Planning Program Unit 5 – Your Money: Keeping it Safe and Secure You’re at a cash register in a store and have given the clerk your credit card. She holds on to it, probably to verify your signature. But then she says she needs to grab something from the back and starts to walk away with your card in hand. 5-O-2 What should you do? Dealing With Deception 2 of 7

49. NEFE High School Financial Planning Program Unit 5 – Your Money: Keeping it Safe and Secure A caller says she’s from your credit card company and wants to offer you a higher credit limit for being such a good customer. You reply, “Great, what do I have to do?” And she tells you to give her your Social Security number for verification. 5-O-3 What should you do? Dealing With Deception 3 of 7

50. NEFE High School Financial Planning Program Unit 5 – Your Money: Keeping it Safe and Secure You’ve found a pair of shoes at a great price on a Web site you just found. You start the check-out process and notice that the padlock at the bottom of your computer screen is open and that the Web page address starts with “http” instead of “https.” 5-O-4 What should you do? Dealing With Deception 4 of 7

51. NEFE High School Financial Planning Program Unit 5 – Your Money: Keeping it Safe and Secure You get an E-mail from an online bookstore you frequently buy from. It says that the credit card on your account has expired and gives you a link to update your information. 5-O-5 What should you do? Dealing with Deception 5 of 7

52. NEFE High School Financial Planning Program Unit 5 – Your Money: Keeping it Safe and Secure Your friend sends you an E-mail about cool new software that lets you share music with others for free. He sends you the link to download the software, which is from a site you’ve never heard of. 5-O-6 What should you do? Dealing With Deception 6 of 7

53. NEFE High School Financial Planning Program Unit 5 – Your Money: Keeping it Safe and Secure You’re bummed out about losing in an online auction. But then you get an E-mail stating the winner backed out and that you can have the item if you still want it, and to just send your credit card information via E-mail. 5-O-7 What should you do? Dealing With Deception 7 of 7

54. NEFE High School Financial Planning Program Unit 5 – Your Money: Keeping it Safe and Secure Keep Your ID Near, Dear, and Secure Keep your personal information in a safe place, under lock and key if possible.Keep your personal information in a safe place, under lock and key if possible. Sign new credit cards; destroy old ones.Sign new credit cards; destroy old ones. Shred bill statements.Shred bill statements. Check and double-check all your statements for unauthorized use.Check and double-check all your statements for unauthorized use. Don’t fall for Internet scams.Don’t fall for Internet scams. 5-P-1 1 of 2

55. NEFE High School Financial Planning Program Unit 5 – Your Money: Keeping it Safe and Secure Only enter into secure transactions on the Internet. or “https”Only enter into secure transactions on the Internet. or “https” Scan a copy of all the cards and other information you keep in your wallet. Print out or keep an electronic copy in a secure place to use in case your wallet is ever lost.Scan a copy of all the cards and other information you keep in your wallet. Print out or keep an electronic copy in a secure place to use in case your wallet is ever lost. Because the contents of your wallet can change, do this 3 - 4 times a year.Because the contents of your wallet can change, do this 3 - 4 times a year. 5-P-2 Keep Your ID Near, Dear, and Secure 2 of 2

56. NEFE High School Financial Planning Program Unit 5 – Your Money: Keeping it Safe and Secure Fraud Alert Cancel all your credit, debit and other card accounts.Cancel all your credit, debit and other card accounts. Report loss to Social Security, and apply for a new SS number.Report loss to Social Security, and apply for a new SS number. Call any of the national credit reporting bureaus.Call any of the national credit reporting bureaus. Call police if you are confident your identity has been stolen.Call police if you are confident your identity has been stolen. 5-Q-1 1 of 2

57. NEFE High School Financial Planning Program Unit 5 – Your Money: Keeping it Safe and Secure File a complaint with the Federal Trade Commission at www.ftc.gov/idtheftFile a complaint with the Federal Trade Commission at www.ftc.gov/idtheft 5-Q-2 Fraud Alert 2 of 2

59. About Your PIN PINPIN stands for Personal Identification Number. This number gives you access to your account, so it’s important to keep it secret. MemorizeMemorize your PIN number. Do not write it down and keep it somewhere in your wallet (where someone could find and use it). 5-J-Extra GO BACK