© Family Economics & Financial Education – October 2010 – The Essentials to Take Charge of Your Finances – Depository Institution Essentials – Slide 1

Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona

7.2.2.G1

Reflection #“The safest way to double your

money is to fold it over once and put it in your pocket” What does this mean?

Test Correction Unit 1You will need:

Your scantronA writing utinsilUnit 1 Test A lined piece of paper

Jigsaw Groups at Door

© Family Economics & Financial Education – October 2010 – The Essentials to Take Charge of Your Finances – Depository Institution Essentials – Slide 2

Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona

7.2.2.G1

Test Correction Your scantron has been corrected, the

right answers are in red on the right hand side of the testing section.

Look at your test and your answer sheet and see which ones you got wrong.

Retrain Your Brain AND Earn Extra Points On your OWN lined paper correct your test Tell me why the RIGHT answer is

RIGHT. Combine the question and the correct

answer into a complete full sentence that shows your understanding.

You only have 10 minutes!

© Family Economics & Financial Education – October 2010 – The Essentials to Take Charge of Your Finances – Depository Institution Essentials – Slide 3

Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona

7.2.2.G1

Class Assignment 2: Managing a Checking Account

Using your checks and deposit slips on (page 13), make the following banking transactions and record them on the

check register (page 14 ) in order. Today fill out:

1. February 3 – Deposit: you open your checking account with the following deposit information: Check #3698 for $165.00, Check #2438 for $89.63 and $20 cash, you request no money back.

2. February 4 – Write check #101 to the Electric Company for $62.88, your account number is 12632

© Family Economics & Financial Education – October 2010 – The Essentials to Take Charge of Your Finances – Depository Institution Essentials – Slide 4

Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona

7.2.2.G1

Depository Institution Essentials

Advanced Level

© Family Economics & Financial Education – October 2010 – The Essentials to Take Charge of Your Finances – Depository Institution Essentials – Slide 5

Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona

7.2.2.G1

What is the name of a depository institution in your community?

?

What is a Depository Institution?Depository

institutions are businesses which

offer multiple services in

banking and finance

Commercial Banks

Credit Unions

These are the two most common types of depository institutions.

© Family Economics & Financial Education – October 2010 – The Essentials to Take Charge of Your Finances – Depository Institution Essentials – Slide 6

Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona

7.2.2.G1

Types of Depository InstitutionsCommercial

BankCredit Union

Description

Full service institutions- may offer all of the

services provided by depository institutions

Non-profit cooperative institution that is

owned by the members and often

provides more customer friendly interest rates than commercial banks

Used by?

Open to anyone who wants to utilize a

depository institutionMembers must possess

a common bondType of Insuran

ce Coverag

e

Federal Deposit Insurance Corporation

(FDIC)National Credit Union Administration (NCUA)

Insurance

Protects

Will restore the lost funds in savings tool

accounts up to $250,000 per account

Will restore the lost funds in savings tool

accounts up to $250,000 per account

© Family Economics & Financial Education – October 2010 – The Essentials to Take Charge of Your Finances – Depository Institution Essentials – Slide 7

Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona

7.2.2.G1

Choosing a Depository InstitutionAll depository institutions differ from one another in regards to locations, services offered, interest rates offered, and specific features provided

Choose the correct depository institution to meet individual needs

Individuals may choose to use one depository institution or multiple depository institutions

Individuals may have more than one type of account at the same depository institution

© Family Economics & Financial Education – October 2010 – The Essentials to Take Charge of Your Finances – Depository Institution Essentials – Slide 8

Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona

7.2.2.G1Depository Institution Insurance Depository institutions should be

insured to protect consumers against loss. If the institution is insured, it will be posted in view for the customer to see. Depository institutions are insured by either FDIC or NCUA.Federal Deposit Insurance

Corporation(FDIC) is a federal government agency which insures member depository institutions against loss. If a depository institution that is covered by the FDIC fails, the FDIC will restore the lost funds in savings tool accounts up to $250,000 per account.

National Credit Unit Administration (NCUA) provides insurance protection for credit unions. Each depositor is insured up to at least $250,000 on savings tool accounts.

© Family Economics & Financial Education – October 2010 – The Essentials to Take Charge of Your Finances – Depository Institution Essentials – Slide 9

Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona

7.2.2.G1

Advantages and Disadvantages of Using a Depository Institution

• May have to pay fees

• May have required minimum balances

• Sharing financial information

• Assists in managing finances and reaching financial goals

• Protection from loss (insurance)

• Opportunity to earn interest

Do you use a depository institution? ?

© Family Economics & Financial Education – October 2010 – The Essentials to Take Charge of Your Finances – Depository Institution Essentials – Slide 10

Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona

7.2.2.G1

Financial Goals

A goal is defined as the end result of something a person intends to acquire, achieve, do, reach, or accomplish

Financial goals are specific objectives to be accomplished through financial planning

Choose a depository institution that will help meet financial goals

Reach for starsTom Jackon

© Family Economics & Financial Education – October 2010 – The Essentials to Take Charge of Your Finances – Depository Institution Essentials – Slide 11

Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona

7.2.2.G1

Jigsaw Groups Find your clothing

group. (all hats, ect.) Get your group’s

envelope and read your information. Find the definitions for your group and fill in your study guide

Find your color group. (all green together, ect.) Share your information

with the rest of the group and fill in your study guides.

© Family Economics & Financial Education – October 2010 – The Essentials to Take Charge of Your Finances – Depository Institution Essentials – Slide 12

Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona

7.2.2.G1

Compound Interest (in plain English)

Watch the video to help understand compound interest.

© Family Economics & Financial Education – October 2010 – The Essentials to Take Charge of Your Finances – Depository Institution Essentials – Slide 13

Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona

7.2.2.G1Class Assignment 1: Calculating Interest

Using the handout from class calculate simple, compound, and the rule of 72 interest rates. Keep this sheet to turn in at the end of the unit.

© Family Economics & Financial Education – October 2010 – The Essentials to Take Charge of Your Finances – Depository Institution Essentials – Slide 34

Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona

7.2.2.G1

SummaryWhat is a depository institution?

How do depository institutions differ from one another?

How should an individual choose a depository institution?

• Businesses which offer multiple services in banking and finance

• Location• Services

offered• Interest rates

offered• Features offered

• Research depository institutions and choose the one(s) that best fits needs and helps reach personal financial goals

• Type

© Family Economics & Financial Education – October 2010 – The Essentials to Take Charge of Your Finances – Depository Institution Essentials – Slide 35

Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona

7.2.2.G1

SummaryDepository institutions offer many services to customers. What are these services?

Depository institutions offer features to their services. What are these features?

Find the depository institution that best fits your

needs and helps you reach financial goals!

• Savings tools

Electronic banking-

• Investment tools• Credit • Safe-deposit boxes

• Financial counseling

• Debit cards • ATMs• Direct deposit• Direct payment • Online banking