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

Banking

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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

Bank On ItFDIC Money Smart for Young Adults

Building: Knowledge, Security, Confidence

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• 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

Why do you want to learn about the services and functions of a bank?

Welcome to Bank On It!

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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

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Checking Account in Bank vs. Satin Bag in Drawer

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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

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Why keep your money in a bank?

• Safety

• Convenience

• Lower cost

• Security

• Build your financial future

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Types of Financial Institutions

• Bank

• Credit Union

• Thrift (or savings and loan)

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How Do I Open a Bank Account?

• 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?

Your bank should meet your needs, so ask yourself: Click Pic

& Read

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Banking Terms

Deposit 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

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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

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What Is Account Verification?

– Photo ID, state-issued ID card

– Passport– Driver’s license– SSN, ITIN

Proving your identity and showing your readiness to open an account with identification such as:

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Depositing Money

• Use a deposit slip• A deposit slip tells the bank how much

money you are adding

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Deposit Accounts

• Checking 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

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Other Banking Services

• Direct deposit• Money orders• Electronic (phone and

online) banking• ATMs• Money transfers• Debit cards and stored

value cards• Loans

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Important Bank Employees

Customer Service Representative

Bank TellerLoan Officer

Branch Manager

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CONCLUSION: Checking Account in Bank vs Satin Bag in Drawer

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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

Building: Knowledge, Security, Confidence

Check It OutFDIC Money Smart for Young Adults

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Better Money Management

• Keep a record of “transactions”

• Build a positive relationship with your bank

Having a checking account lets you:

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Safety

• 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

Having a checking account:

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Types of Checking Accounts

• Free/low-cost checking

• Electronic/ATM checking

• Regular checking

• Interest checking

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Fee Schedule

• Monthly service fee• Minimum balance fee• Automated Teller

Machine (ATM) user fee• Overdraft fee• Stop payment fee

Some common bank fees include:

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Needed to Open a Checking Account

• Photo ID

• Social Security number (SSN) – Or Individual Taxpayer

Identification Number (ITIN)

• A deposit

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The Checkbook

Contains:

• Checks

• Deposit slips

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Sample Checks

2/26/20XX

Best Tees 19.75Nineteen and 75/100

Your signatureshirt

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“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”

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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

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Electronic Banking

• ATM transactions

• Debit card transactions

• Electronic bill pay

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Debit Card

A debit card lets you:

Be careful!

• Deposit and withdraw money• Make purchases at retail

locations

• The money is immediately taken out of your account

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Electronic Bill Pay

• Automatically pays your bills from your account

– No postage– No late payments

• Also pay bills online

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Add Money to Your Checking Account

• Cash or check deposit using the teller service

• ATM deposit

• Deposit by mail

• Direct deposit

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Sample Deposit Slip

3/22/20XX

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Sign the Back of the Check

DO NOT WRITE, STAMP OR SIGN BELOW THIS LINERESERVED FOR FINANCIAL INSTITUTION USE *

ENDORSE HEREWhen depositing a check that has been made out to you, you MUST sign the back and place your account number underneath the signature.

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Sample Deposit Slip Front and Back

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ATM Deposits

• Like an ATM withdrawal

• Use the special deposit envelope

• Take the receipt

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Mail Deposits

• Include a deposit slip with the check

• NEVER send cash through the mail

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Direct Deposit

• Directly into your checking account

• Your money is available immediately

• Safe

• Easy to sign-up

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Checking Account Statement

• Checks you wrote

• Withdrawals and deposits

• Debit card purchases

• Bank fees

A monthly report from your bank listing:

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Reconciling Your Checking Account

?Does…

=

Just like doing a budget→ both should balance out

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Check It Out!

• 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

Congratulations! You have completed the module. You have learned:

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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