Banking Addressing Standard 2.0 TSW: Evaluate best practices for successful money management.

Read & Absorb & Apply You will read (interact) 2 short lessons on banking Bank On It Check It Out You will compete in a Round Robin Competition

FDIC Money Smart for Young Adults Bank On It FDIC Money Smart for Young Adults Building: Knowledge, Security, Confidence

Welcome to Bank On It! Why do you want to learn about the services and functions of a bank? To choose the one that’s right for you when the time comes To take the right steps to open a bank account To determine the right person to talk to at the bank when you need different services

Objectives Identify the major types of insured financial institutions Identify five reasons to use a bank Describe the steps involved in opening and maintaining a bank account Describe two types of deposit accounts Identify additional bank services that come with deposit accounts Describe the main functions of the bank customer service representative, teller, loan officer, and branch manager

Checking Account in Bank vs. Satin Bag in Drawer

What Do Banks Do? They’re businesses that offer a safe place to keep money Use deposits to make loans Also called financial institutions Offer many financial services

Why keep your money in a bank? Safety Convenience Lower cost Security Build your financial future

Types of Financial Institutions Bank Credit Union Thrift (or savings and loan)

How Do I Open a Bank Account? Your bank should meet your needs, so ask yourself: Click Pic & Read What services does it offer? Is it near my home? Where are its ATMs? What are the fees for different accounts? Is it insured by the FDIC? Suggested changing top question to: How Do I Know What Bank is Right for Me?. If that is too big a change, add to the slide content question the phrase: “about the bank” as in “You should ask yourself several questions about the bank, including:” JK: I kept the question since it matches the lesson, but changed the “Before you open….” wording.

Banking Terms Deposit Withdrawal Balance Fees Overdraft put money in the bank Withdrawal take money out of the bank Balance how much money you have in the bank Fees money charged for services Overdraft withdrawing more money than you have in your account WIN, LOSE, or DRAW

WIN, LOSE, or DRAW Form 2 Groups Teacher will give instructions On Go: Student from each group will complete task You will get 30 sec. to prepare How to get points Best interpretation wins (teacher is judge) Team that wins gets Extra Credit

What Is Account Verification? Proving your identity and showing your readiness to open an account with identification such as: Photo ID, state-issued ID card Passport Driver’s license SSN, ITIN Changed dash from keyboard dash to symbol to be consistent with other slides..

Depositing Money Use a deposit slip A deposit slip tells the bank how much money you are adding

Deposit Accounts Checking accounts Savings accounts Write checks to pay bills or buy goods or services Linked to an ATM/Debit card Savings accounts Earn more money on your deposits Usually use money only on things you saved for Can be linked to an ATM/Debit card

Other Banking Services Direct deposit Money orders Electronic (phone and online) banking ATMs Money transfers Debit cards and stored value cards Loans

Important Bank Employees Branch Manager Loan Officer Bank Teller Customer Service Representative

CONCLUSION: Checking Account in Bank vs Satin Bag in Drawer

Checking Your Balance Congratulations! You have completed the Bank On It module. You have learned about: Types of insured financial institutions Basic banking terms How to open and maintain a bank account Types of accounts and services Bank employees and their roles Changed dashes to symbols to be consistent with other slides.–

Check It Out FDIC Money Smart for Young Adults Building: Knowledge, Security, Confidence

Better Money Management Having a checking account lets you: Keep a record of “transactions” Build a positive relationship with your bank

Safety Having a checking account: Is safer than carrying large amounts of cash Protects your checks and check card if they are lost or stolen Means your money is insured up to the maximum amount allowed by law

Types of Checking Accounts Free/low-cost checking Electronic/ATM checking Regular checking Interest checking Images changed

Fee Schedule Some common bank fees include: Monthly service fee Minimum balance fee Automated Teller Machine (ATM) user fee Overdraft fee Stop payment fee

Needed to Open a Checking Account Photo ID Social Security number (SSN) Or Individual Taxpayer Identification Number (ITIN) A deposit

The Checkbook Contains: Checks Deposit slips

Sample Checks Best Tees 19.75 Nineteen and 75/100 shirt Your signature 2/26/20XX Best Tees 19.75 Nineteen and 75/100 shirt Your signature

“Bad” or NSF Check A check you write when there isn’t enough money in your checking account to cover it Also called a “bounced check”

Consequences of Writing Bad Checks Bad check fees Negative activity reported Bank closes your account Civil and/or criminal prosecution Merchants may not accept your checks Your credit may be impacted

Electronic Banking ATM transactions Debit card transactions Electronic bill pay

Debit Card A debit card lets you: Be careful! Deposit and withdraw money Make purchases at retail locations Be careful! The money is immediately taken out of your account

Electronic Bill Pay Automatically pays your bills from your account No postage No late payments Also pay bills online

Add Money to Your Checking Account Cash or check deposit using the teller service ATM deposit Deposit by mail Direct deposit Image changed

Sample Deposit Slip 3/22/20XX

Sign the Back of the Check DO NOT WRITE, STAMP OR SIGN BELOW THIS LINE RESERVED FOR FINANCIAL INSTITUTION USE * ENDORSE HERE When depositing a check that has been made out to you, you MUST sign the back and place your account number underneath the signature.

ENTER TOTAL ON THE FRONT OF THIS TICKET Sample Deposit Slip Front and Back ENTER TOTAL ON THE FRONT OF THIS TICKET

ATM Deposits Like an ATM withdrawal Use the special deposit envelope Take the receipt Image altered

Mail Deposits Include a deposit slip with the check NEVER send cash through the mail

Direct Deposit Directly into your checking account Your money is available immediately Safe Easy to sign-up

Checking Account Statement A monthly report from your bank listing: Checks you wrote Withdrawals and deposits Debit card purchases Bank fees

? = Reconciling Your Checking Account Does… Just like doing a budget→ both should balance out

Check It Out! Congratulations! You have completed the module. You have learned: The benefits of using a checking account Which checking account is best for you The steps involved in opening a checking account How to add and withdraw money from a checking account How to reconcile a check register with a bank statement

What Next???... Put your new knowledge to work Round Robin Activities You will have 5 stations to complete (10min ea) Staple & Submit work to bin 25pts