1. NEFE High School Financial Planning Program Unit 5 – Your Money: Keeping it Safe and Secure Bellwork K WL List 5 items you already KNOW about banks, credit unions, savings accounts or checking accounts List 3 items you WANT to know about banks, credit unions, savings accounts or checking accounts List 1 new item you LEARNED today, either from me or one of your classmates Did you know?

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

6. NEFE High School Financial Planning Program Unit 5 – Your Money: Keeping it Safe and Secure NEFE High School Financial Planning Program Unit 5 – Your Money: Keeping it Safe and Secure What do you need when opening a savings (share) account? 1.Identification (id) 2.Your signature 3.Your address 4.A deposit ($) 5-D

7. NEFE High School Financial Planning Program Unit 5 – Your Money: Keeping it Safe and Secure Checks When you “cash” a check from someone, you must endorse it (sign it on the back) When you “cash” a check from someone, you must endorse it (sign it on the back) If you “bounce” a check- you do not have enough $ for the amount written on the check If you “bounce” a check- you do not have enough $ for the amount written on the check If you bounce a check you may: If you bounce a check you may: Be charged a fee by your bank Be charged a fee by your bank Be charged a fee by the store Be charged a fee by the store Have your credit score go down Have your credit score go down 5-J *About your PIN

8. NEFE High School Financial Planning Program Unit 5 – Your Money: Keeping it Safe and Secure NEFE High School Financial Planning Program Unit 5 – Your Money: Keeping it Safe and Secure Benefits of a checking account 1.Convenience 2.Safety 3.Easier Budgeting 4.Proof of Payment -Once you write and sign the check ONLY the payee (the person you made the check out to) can cash the check. 5-L

9. NEFE High School Financial Planning Program Unit 5 – Your Money: Keeping it Safe and Secure Checking account- This is where you put your money to be able to write checks AND to use your debit card Checking account- This is where you put your money to be able to write checks AND to use your debit card Savings account- This is where you put your money to SAVE it AND to earn interest Savings account- This is where you put your money to SAVE it AND to earn interest 5-Q-2 Difference between a checking and savings account: 2 of 2

10. NEFE High School Financial Planning Program Unit 5 – Your Money: Keeping it Safe and Secure Debit Cards Sometimes called “check cards” Sometimes called “check cards” They act just like a check They act just like a check Money comes out of your checking account Money comes out of your checking account No interest is added because you are not borrowing money No interest is added because you are not borrowing money 5-K

11. NEFE High School Financial Planning Program Unit 5 – Your Money: Keeping it Safe and Secure Advantages/Conveniences of a debit card 1. You don’t have to carry cash 2. Less/Easy to carry 3. Transactions usually go quicker Why use a debit card instead of a credit card? --Purchases are paid in full without adding to debt (b/c $ comes out of your checking acct, you are not borrowing it) 5-K

12. NEFE High School Financial Planning Program Unit 5 – Your Money: Keeping it Safe and Secure Disadvantages of a Debit Card YOU must record each transaction in your check register YOU must record each transaction in your check register If you forget to record your $, you may bounce a check If you forget to record your $, you may bounce a check Someone may steal your debit card Someone may steal your debit card

13. NEFE High School Financial Planning Program Unit 5 – Your Money: Keeping it Safe and Secure Credit Card Don’t go over your credit limit (the maximum amount you can charge). This will incur a fee. Don’t go over your credit limit (the maximum amount you can charge). This will incur a fee. You can get a credit card just about anywhere You can get a credit card just about anywhere Gas station-Target Gas station-Target Credit union-Kroger Credit union-Kroger Bank Bank 5-K

14. NEFE High School Financial Planning Program Unit 5 – Your Money: Keeping it Safe and Secure Online banking You can view your accounts online You can view your accounts online EFT (Electronic funds transfer)- allows employers to deposit your paycheck right into your account (no going to the bank and cashing it!) EFT (Electronic funds transfer)- allows employers to deposit your paycheck right into your account (no going to the bank and cashing it!) Online banking is great because you can do it ANYTIME! 24/7 Online banking is great because you can do it ANYTIME! 24/7

15. NEFE High School Financial Planning Program Unit 5 – Your Money: Keeping it Safe and Secure Online banking, cont. Advantages of online banking Advantages of online banking Convenience Convenience Personal safety Personal safety Knowledge of your account Knowledge of your account Time savings Time savings Disadvantages of online banking Disadvantages of online banking May have a fee involved May have a fee involved Security issues Security issues

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

17. NEFE High School Financial Planning Program Unit 5 – Your Money: Keeping it Safe and Secure Only enter into secure transactions on the Internet. Only enter into secure transactions on the Internet. 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

18. 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

19. 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

20. 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

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

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

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

24. NEFE High School Financial Planning Program Unit 5 – Your Money: Keeping it Safe and Secure 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 have never heard of the company and the website links don’t work, but the prices are so good you have to buy. When checking out the site does not say “secure”, and the margins of the page are off. 5-O-4 What should you do? Dealing With Deception 4 of 7

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

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

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

28. NEFE High School Financial Planning Program Unit 5 – Your Money: Keeping it Safe and Secure NEFE High School Financial Planning Program Unit 5 – Your Money: Keeping it Safe and Secure What about you? Have you been scammed? Is there something you should warn the class about so we are not victims?