Personal Finance
Four common Financial Institutions Commercial banks Savings and loan associations (S&Ls) Credit Unions Brokerage Firms
Checking Accounts Savings accounts and certificates of deposit (CDs) Automated teller machines (ATMs) Direct deposits and automated withdrawals Online banking Deposit insurance
Credit cards Installment loans and credit lines Mortgages Home equity loans Student loans Small business loans
Retirement accounts (IRAs, SEPs, KEOGHs) Stocks, bonds, and mutual funds Answer questions a – e on page 63 of Exercise 9.1
Choosing a checking account Special account Standard account Interest-bearing account Opening a checking account Identification Choose type Signature card Deposit
Making a deposit
ATM machines are convenient to use to deposit or withdraw funds Need an ATM card and PIN Charge to use ATM if ATM is not your bank’s ATM ATM cards are often debit cards as well and can be used to make purchases Debit card allows you to make purchases and have the money withdrawn directly from your bank account
Bill paying, transferring funds between accounts, account information
Use 24/7 with secure connections Pay bills Transfer funds Check account balance Requires a user name and password All bank transactions are included
A signature on the back of the check instructing the bank as to how the check may be cashed Blank endorsement allows you to cash or deposit a check made out to you Restrictive endorsement, e.g. for deposit purposes only Special endorsement allows you to transfer the check to another person
Be sure you have enough money in your account to cover the check Record the number, date, payee and amount in your check register Subtract the amount of the check from the balance
Check # Date TRANSACTION DESCRIPTON WITHDRAWALDEPOSITBALANCE 3/1Deposit /7CD Sales, CDs /8 A. J. Vitullo Co. sweaters Keep a check register even if when making all transactions via an ATM machine All withdrawals and deposits should be recorded and the balance calculated after each transaction
Answer questions on page 67 in Exercise 9.2