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Where do I keep my money?.  Financial Institution – Organization that channels savings to investors.  How does it work? ◦ You deposit money ◦ You get.

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Presentation on theme: "Where do I keep my money?.  Financial Institution – Organization that channels savings to investors.  How does it work? ◦ You deposit money ◦ You get."— Presentation transcript:

1 Where do I keep my money?

2  Financial Institution – Organization that channels savings to investors.  How does it work? ◦ You deposit money ◦ You get paid in interest for keeping your money there ◦ They loan some of your money to borrowers ◦ Borrowers repay loan plus interest ◦ They keep the difference in interest amounts

3  Def. – Payment made for the use of borrowed money.  Interest Rate – Percentage a bank will pay to depositors or charge to borrowers.  Interest rates set by central bank of each country

4  Most common & safest – WHY? ◦ Deposits are insured by FDIC  What do they do? ◦ Accept deposits ◦ Lend & transfer funds ◦ Manage day-to-day transactions

5  Def. – Not-for-profit banks that have been created for a specific group of people.  Examples: ◦ State Employees ◦ School Districts ◦ Big Companies  Benefits: ◦ Goal – Share profits with the members ◦ Offer perks big banks cannot offer ◦ Lower fees & interest rates

6  Some financial institutions do not accept deposits, but still channel savings to borrowers.  Finance Companies – Make loans directly to customers to finance large purchases.  Life Insurance Companies – Lend surplus funds  Investment Banks – Buy & sell stocks (Securities)

7 Routing Number Check Number Amount Account Holder Account Number Who Gets Paid

8  Date: 9/1/2015  Who are we paying? Whoever you live with  How much? $800.00  Why are we paying? Rent for September  Sign your name

9  9/2/2015  Groceries (Pick your favorite grocery store)  $250.00

10  Why?  How? ◦ Check Number ◦ Date ◦ Reason ◦ Amount (Withdrawal/Deposit) ◦ Balance  Balance your checkbook for the groceries you bought

11  Use the following transactions to fill in your check book register 1.On 9/10 you paid your cellphone bill ($75) 2.On 9/15 you received your monthly paycheck ($3000) 3.On 9/18 you made a car payment ($500) 4.On 9/21 you paid your cable bill ($175) 5.On 9/24 you bought groceries again ($200) 6.On 9/28 you bought a soccer shirt ($30) 7.On 9/30 you paid to have your car repaired ($2000) 8.Calculate your ending balance.


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