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

Agenda Understanding Terms Basic Checking Saving Money Credit & Loans “Buy now pay later” Ice-breaker, something to get them moving or engaged. Questions like what type of car do you want, how much will it be, etc

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 Discuss APY

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

Checking Accounts Convenient Access Electronic Services 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 Really focus on fees and how to use

Writing Checks What are the major parts of a check? Ask the class to fill in a blank one on the board

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 Concert time-$75 Extra Chores for +$30 but can’t go to the movies Week 3: Starbucks again-$10 New Video game-$50 Its your B-day and you get $75 Going to the big game-$20 You break your phone-$300 Do this as an activity. Give the kids time to decide how to spend their money

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

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

How saving adds up! How Much to save in 6 months for that $500 I-Pad? A month _____? A week _____? A day _____? Give the student time to fill this out Month is $83.33 A week is $19.23 A day is $2.74

Long Term Savings Rich Moore Les Little 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

The Rule of 72 How can you double your money?

Savings Vs. Checking Checking? * Savings? * Ask the class to come up with the examples

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? Ask kids again what they want to save for and how they decide to spend money on something.

Credit Credit allows individuals to use money they currently don’t 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 Don’t 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 Discuss APR

Links Balance a checking account tools Checking account education https://www.balancepro.net/checking/index.html   Checking account education http://www.balancetrack.org/checking/index.html Teens and Money http://www.balancetrack.org/teensandmoney/index.html If time, use these links and show them online to use

Questions?