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DESCRIPTIONHealth DMA. Please take out a piece of paper and complete the following: 1. Write down the vocabulary word and definition. 2. Choose ONE of these options and complete it. – Draw a picture that illustrates/explains the vocabulary word. – Rewrite the definition in your own words. - PowerPoint PPT Presentation
Health DMAPlease take out a piece of paper and complete the following:1.Write down the vocabulary word and definition.2. Choose ONE of these options and complete it.Draw a picture that illustrates/explains the vocabulary word.Rewrite the definition in your own words.Write a sentence that includes the term and the information from the definition.
How we express our innermost feelings and how other people observe and interpret our expressions. Todays AgendaDMABanks & financePre-testTypes of banksTypes of accountsTypes of loans
Pre-TestEveryone needs a handoutWrite all your answers on your own paper.Insured Financial InstitutionsBanks/Thrifts:Federal & state lawsMake loans, pay checks, accept deposits, & other services
Credit Unions:Same as banks (services)Non-profit financial institutionsRequire a membershipCheck Your Balances.Always know how much is in your account!FeesMonthly maintenance feesPenalty feesOverdraft fees
FDICDeposit $ into a bank/thrift/credit union up to $250,000.00
FDIC/NCUA insures it
Bank vs. Check-Cashing ServicesWhich is the better deal?Check-Cashing ServicesCheck-cashing fees:4 x $5 = $20 a month$20 x 12 = $240 a yearMoney order fees:5 x $1 = $5 a month$5 x 12 = $60 a yearTotal: $300Bank Monthly fee:$5 a month$5 x 12 = $60Box of checks: $18Total: $78Savings: $222Interest% of your balance that the bank pays you for keeping your $ at that bank
Description+/-BalanceOpening Balance+$100$100Withdrawal-$20$80Fees-$4$76Interest+$1 $77If the FDIC insures accounts how do people lose so much $ in the stock market?Discuss with a neighborNon-Deposit AccountsIncludes stocks, bonds, & mutual fundsNot FDIC-insuredYou may risk losing your investment.
Name That ServiceEveryone needs a handout
Put the name of the service next to its descriptionThe signs around the room have the names of the services
Move around quietly to find the answersWhy is credit important?Discuss with a neighborWhy Is Credit Important?Its convenient EmergenciesPay for purchases over timeCan affect your ability to obtain employment, housing, & insurance
What is Collateral?Security/assest you pledge to the lenderIf you do not repay the loanthe lender is allowed to take/keep the collateral.
Home LoansHome Purchase LoansPrimary loan for purchasing a home
Home Refinance LoansLoan that replaces primary home loan
Home Equity LoansSecond mortgage/loan secured by the borrowers home
Home EquityA lender may allow you to borrow up to a certain percentage of your homes value (usually 80%)
Value of Home$250,000 Minus debt-200,000 Equity$50,000
The Four CsCapacity: Your ability to meet paymentsCapital: Value of your assets and net worthCharacter: How you paid your bills or debts in the pastCollateral: Property/assets used to secure the loan
Predatory Lending PracticesPredatory loans:Are usually more expensive than other loansHave repayment terms many consumers cannot meetExploit borrowers
What are pay-day loans?List some companies that offer themDiscuss with a neighbor.Pay-Day Loan ServicesShort-term, costly loans
If you roll over or renew your loan, the lender will charge an additional fee: $230 + $30 additional fee = $260!
Loan AmountLoan TermFeeYou write a check for:$2002 weeks$30$230 (391%)When You Need $ FastBorrow from yourself first put money into an emergency savings accountComparison shop for loans Look at ALL fees & risksCheck out emergency cash options with your bank