financial services intr
TRANSCRIPT
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• Activity 1…….Where Do I Keep My Money?
• Activity 2…….Evaluating Financial Services
• Activity 3…….Banks, Yesterday and Today
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ACTIVITY 1
Where Do I Keep My Money?
Overview
• The functions of banks
• The cost of alternative financial services
• The stability of banks
Introduction to Financial Services - Activity 12www.StudsPlanet.com
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PLACES TO SAVE MONEY
Would you save your money in any of these places? Why? Why not? Can you think of other places to save money?
• Bed & Mattress• Cookie Jar• Pillow• Wallet• Money Belt• Small House Safe
Slide 1 - Places to Save MoneyLesson Reference: Introduction to Financial Services, Activity 2 – Overhead 13
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Slide 2 - Alternative Financial Services Lesson Reference: Introduction to Financial Services, Activity 1 – Handout 1
ALTERNATIVE FINANCIAL SERVICES
•Check-Cashing Services
•Check-Deferrals, Cash Advances, Payday Loans
•Pawn Shops
•Rapid Tax Refunds
•Rent-to-Own
•Other Financial Services
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FEDERAL DEPOSIT INSURANCECORPORATION (FDIC)
• Established in 1933.• Insures most Savings, Checking,
and other Deposit Accounts,up to $100,000 per depositor,per institution.
• Applies to most CommercialBanks, Savings Banks, andSavings Associations.
Slide 3 – FDIC Lesson Reference: Introduction to Financial Services, Activity 1 – Overhead 25
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Overview
• Formal and informal financial services• Costs of alternative financial services and
average bank accounts • Advantages of establishing a banking
relationship
ACTIVITY 2
Evaluating Financial Services
Introduction to Financial Services – Activity 26www.StudsPlanet.com
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Slide 1 – Formal and Informal Financial Services Lesson Reference: Introduction to Financial Services, Activity 2 – Overhead 1
INFORMAL FINANCIALSERVICES
• Payday lenders• Check cashing services• Rent-to-own stores• Pawn shops• Title lenders• Loans from family/friends• Cultural savings clubs• Remittances offered through
nonfinancial institutions
FORMALFINANCIAL SERVICES
• Accounts• Credit cards• Loans• Investment vehicles• Direct deposit• Wire transfers/ remittances
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Slide 2 – How a Bank Can Save You Money Lesson Reference: Introduction to Financial Services, Activity 2 – Handout 2
HOW A BANK CAN SAVE YOU MONEY
Monthly Fees without a Bank Monthly Fees with a Bank*
8
• $80 to cash paychecks• $3.81 on money orders and
stamps to pay bills• $15 to send money to family
with a wire transfer company
Monthly cost: $98.81 Annual cost: $1,185.72
• $0 to directly deposit
paycheck• $0 to get cash from bank's
ATMs or make debit card purchase
• $0 to pay monthly bills using electronic bill payment
• $5 to send money to family
Monthly cost: $5.00 Annual cost: $60.00Annual Savings by Using a Bank: $1,125.72
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Slide 3 – Advantages of a Banking Relationship Lesson Reference: Introduction to Financial Services, Activity 2 – Overhead 2
ADVANTAGES OF ESTABLISHING A BANKING RELATIONSHIP
Nearly everyone needs a bank account to help manage his or her day-to-day money.
Bank accounts can help you to:• Pay bills• Manage your money• Receive money• Send money to a friend or family member• Keep your money secure• Start building wealth• Earn interest
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ACTIVITY 3
Banks, Yesterdayand Today
Overview
Introduction to Financial Services - Activity 3
• The many traditional financial services provided by a bank
• Other expanded financial services provided by a bank
• The impact of banks throughout the community
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TRADITIONALSERVICESOF BANKS
• Checking Accounts• Savings Accounts• CDs (Certificates of
Deposit)• Savings Bonds• Loans
• Car• Home• Personal
• Safe Deposit BoxesSlide 1 - Traditional Services of Banks
Lesson Reference: Introduction to Financial Services, Activity 3 – Overhead 1 11www.StudsPlanet.com
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EXPANDEDSERVICESOF BANKS
• Insurance Sales• Small Business
Advising and Loans• Investments• Credit Cards• Remittances
Slide 2 - Expanded Services of Banks Lesson Reference: Introduction to Financial Services, Activity 3 – Overhead 2
TRADITIONALSERVICESOF BANKS
• Checking Accounts• Savings Accounts• CDs (Certificates of
Deposit)• Savings Bonds• Loans
• Car• Home• Personal
• Safe Deposit Boxes12
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FINANCIAL SERVICESMODERNIZATION ACT (1999)
Transformed the banking industry. Eliminated many
restrictions among companies in the securities, banking, and insurance industries.
Results?• Banks may offer some insurance and
investment services.
• Investment and insurance companies may offer some traditional banking services. Investments are not insured by FDIC.Slide 3 - Financial Services Modernization Act
Lesson Reference: Introduction to Financial Services, Activity 3 – Overhead 3 13www.StudsPlanet.com
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SOME COMMUNITY-RELATEDSERVICES OF BANKS
• Bank employees mentor students in areas of basic financial skills.
• Bank employees serve on community organizations’ boards of directors.
• Banks provide scholarships to students going into the banking profession.
• Banks fund affordable housing construction.
Slide 4 - Some Community-Related Services Lesson Reference: Introduction to Financial Services, Activity 3 – Overhead 4 14
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