introduction to depository institutions -...
TRANSCRIPT
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© Take Charge Today – August 2013 – Introduction to Depository Institutions 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
RECOMMENDED
GRADE LEVELS AVERAGE TIME TO COMPLETE
EACH LESSON PLAN IS DESIGNED AND CONTINUALLY EVALUATED “BY
EDUCATORS, FOR EDUCATORS.” THANK YOU TO THE FOLLOWING
EDUCATORS FOR DEVELOPING COMPONENTS OF THIS LESSON PLAN.
10‐12
Anticipatory Set & Facilitation: 100‐105 minutes
Conclusion/Assessment Options: 15‐60 minutes
Time does not include optional items.
Tracey Newman, Family and Consumer Sciences Educator, Ste. Genevieve, Missouri
Amy Broekhuizen, Family and Consumer Sciences Educator, Kentwood, Michigan
Kathie Beck, Family and Consumer Sciences Educator, Holland, Michigan
NATIONAL STANDARDS LESSON PLAN OBJECTIVES
The curriculum is aligned to the following national standards: National Standards for Financial Literacy American Association of Family and Consumer
Sciences Council for Economic Education National Business Education National Jump$tart Common Core English Language Arts
Upon completion of this lesson, participants will be able to: Analyze the benefits of using a depository institution Research services offered by different depository
institutions Summarize factors to consider when choosing a
depository institution
MATERIALS
MATERIALS PROVIDED IN THIS LESSON PLAN
MATERIALS SPECIFIC TO THIS LESSON PLAN BUT
AVAILABLE IN A SEPARATE DOWNLOAD MATERIALS TO ACQUIRE SEPARATELY
DEPENDING ON OPTIONS TAUGHT
Alike but Different 2.2.1.A1 Agree or Disagree? 2.2.1.A2 Josie’s Depository Institution
Comparison Chart 2.2.1.A3 Help Josie Choose a Depository
Institution 2.2.1.A4 What Do You Know About
Depository Institutions? 2.2.1.A5 Depository Institution Research
2.2.1.A6 Depository Institution
Advertisement 2.2.1.B1 Depository Institution Research
Rubric 2.2.1.B2 Introduction to Depository
Institutions Vocabulary List 2.2.1.E1
Introduction to Depository Institutions Answer Key 2.2.1.C1
Introduction to Depository Institutions PowerPoint Presentation 2.2.1.G1
Introduction to Depository Institutions PowerPoint Presentation 2.2.1.G2
Managing Your Money Unit Multiple Choice Test Bank and Answer Key 2.2.0.M1 & C1
Computer access and/or Internet access
Large pieces of paper (1 per 2‐5 participants)
Colored paper
Crayons, colored pencils, markers, etc.
INTRODUCTION TO DEPOSITORY INSTITUTIONS Advanced Level
www.takechargetoday.arizona.edu
Material List Continued on Page 2
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© Take Charge Today – August 2013 – Introduction to Depository Institutions 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
Depository Institution Advertisement Examples 2.2.1.E2
Introduction to Depository Institutions Information Sheet 2.2.1.F1
Help Josie Choose a Depository Institution Scavenger Hunt Cards 2.2.1.H1
Introduction to Depository Institutions Note Taking Guide2.2.1.L1
RESOURCES
EXTERNAL RESOURCES
External resources referenced in this lesson plan: Katrina’s Classroom: Financial Lessons from a Hurricane: www.frbatlanta.org/forms/katrina_aftermath.cfm
The Fed Explains Regional Banks videos www.federalreserveeducation.org/resources/detail.cfm?r_id=83165294‐571e‐4940‐af70‐8939434adb28
Find A Better Bank: www.findabetterbank.com
“Elderly Man Accidently Gives Life Savings to Goodwill” article: http://abcnews.go.com/blogs/headlines/2011/11/elderly‐man‐accidentally‐gives‐life‐savings‐to‐goodwill/
Consumer Jungle student‐oriented website: www.consumerjungle.org
TAKE CHARGE TODAY RESOURCES
Similar lesson plan at a different level:
Depository Institution Discovery 1.2.1
Electronic Banking Bonanza 1.2.2
Checking Account and Debit Card Simulation 1.2.3
Optional lesson plan resources:
Technology Integration Options Active Learning Tool 3.0.50
Financial Facts Feud Active Learning Tool 3.0.19
Tablets Applications for the Personal Finance Classroom Active Learning Tool 3.0.52
CONTENT
EDUCATOR MATERIALS PARTICIPANT READING
Materials to support educators when preparing to teach this lesson plan are available on the Take Charge Today website.
Introduction to Depository Institutions Information Sheet 2.2.1.F1
LESSON FACILITATION
PREPARE
Visual indicators to help prepare the lesson INSTRUCT
Instructions to conduct the lesson facilitation
CUSTOMIZE
Potential modifications to lesson facilitation
VOCABULARY ACTIVITY
Alike but Different Approximate time: 10 minutes prior to instruction and 15 minutes at the end Materials to prepare: 1 Alike but Different 2.2.1.A1 per participant Before instruction:
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© Take Charge Today – August 2013 – Introduction to Depository Institutions 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
1. Provide each participant with Alike but Different 2.2.1.A1. 2. Instruct participants to write what they think the definition of each word is in
the spaces provided. 3. Conduct the lesson facilitation. After instruction: 4. At the end of the facilitation have participants complete the remainder of the
Alike but Different 2.2.1.A1 by identifying how each set of terms are similar and different. Instruct participants to edit their definitions if they are wrong.
ANTICIPATORY SET OPTIONS There are two anticipatory set options provided for this lesson: 1. Option one: Agree or Disagree? 2. Option two: Katrina’s Classroom: Financial Lessons from a Hurricane
Option 1: Agree or Disagree? Approximate time: 5 minutes at the beginning of instruction and 5 minutes at the end of instruction Materials to prepare: 1. 1 Agree or Disagree? 2.2.1.A2 per participant Before instruction: 2. Provide each participant with an Agree or Disagree? 2.2.1.A2. 3. Instruct participants to complete the “Before” section by determining
whether they agree or disagree with each statement. 4. After determining if they agree or disagree, they should explain why that
choice was made in the “comment” section. After instruction: 5. At the end of the lesson facilitation, have participants complete the “After”
section to determine if their views regarding depository institutions have changed during the course of the lesson.
a. A bank can help me positively manage my money. i. Agree – Using a depository institution has many benefits that
can help a person manage their money. b. I trust that my money is safe if I store it in a bank.
i. Agree – One of the most important services a depository institution offers is a safe and secure place to store your money due to security and insurance.
c. My money has the possibility to increase in value if stored at a bank. i. Agree – If you store your money in an interest earning
account it will increase in value.
Option 2: Katrina’s Classroom: Financial Lessons from a Hurricane Approximate time: 15 minutes Materials to prepare: Katrina’s Classroom: Financial Lessons from a Hurricane video – In the
Aftermath (link available in the supplemental resources section) 1. The Federal Reserve Bank of Atlanta’s series “Katrina’s Classroom: Financial
Order a free DVD of the Katrina’s Classroom videos from the Federal Reserve Bank of Atlanta website.
For the definition of each word in the Alike but Different 2.2.1.A1 have participants “tweet” the definition by encouraging 140 characters or less.
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Lessons from a Hurricane” series consists of four different videos. For this activity, it is recommended to watch the second video in the series called “In the Aftermath.” This video is 6:32 minutes.
2. Explain to participants that they are going to watch the story of Nick, a young man whose family fled from New Orleans during Hurricane Katrina. Ask participants to pay attention to how Nick and his family were able to get money while they were away from home.
3. Show the video “In the Aftermath.” 4. After the video hold a class discussion. Have participants think about how
using a depository institution helped Nick and his family. The following discussion questions may be used:
a. What would the family have done in the aftermath of Hurricane Katrina if they didn’t have a bank account?
b. What would have happened if the family stored their money at home and was unable to return home to retrieve it before the hurricane destroyed their house?
c. What ways did Nick’s mom prepare the family for a natural disaster? d. Why did Nick open a bank account of his own? e. From watching this video, what are benefits of having a bank
account? f. If the family hadn’t been victim to a natural disaster do you think they
would still benefit from having a bank account?
RECOMMENDED FACILITATION There are two facilitation options provided for this lesson: 1. Option one: PowerPoint Presentation With Josie Throughout 2. Option two: PowerPoint Presentation with Josie at the End
Option 1: PowerPoint Presentation with Josie Throughout Approximate time: 90 minutes Materials to prepare: Introduction to Depository Institutions PowerPoint Presentation 2.2.1.G1 1 Josie’s Depository Institution Comparison Chart 2.2.1.A3 per participant 1 set of Help Josie Choose a Depository Institution Scavenger Hunt Cards
2.2.1.H1 1. Split participants into groups of 2‐5 to conduct group discussion and
brainstorming throughout the lesson. 2. Present the Introduction to Depository Institutions PowerPoint Presentation
2.2.1.G1. Part 1: What is a Depository Institution? 3. Slide 1: Introduction 4. Slide 2: What is a Depository Institution?
a. The term depository institution may be unfamiliar, but they have probably heard of a bank. A bank is a type of depository institution.
b. Ask participants to name one depository institution in their community.
5. Slide 3: Meet Josie a. Describe Josie and explain that she is looking for a depository
Write the names of the depository institutions in your community on the board and refer to them throughout the rest of the facilitation.
The Introduction to Depository Institutions Note Taking Guide 2.2.1.L1 is provided but not included as part of the recommended facilitation instructions or approximate time.
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© Take Charge Today – August 2013 – Introduction to Depository Institutions 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
institution to keep her money safe and pay her bills when she starts college next year.
6. Slide 4: Help Josie manage her money by choosing a depository institution a. Hand one Josie’s Depository Institution Comparison Chart 2.2.1.A3 to
each participant. b. Josie has found two depository institutions with branches in her
hometown and near the college she will be attending. c. She has summarized the information for both of these depository
institutions in the Josie’s Depository Institution Comparison Chart 2.2.1.A3 to help her make an informed decision.
d. Their mission is to learn more about Josie and about depository institutions to help Josie determine which depository institution she should choose to use.
Part 2: Types of Depository Institutions and Location 7. Slide 5: Types of Depository Institutions
a. Stress that there are multiple types of depository institutions. Commercial banks and credit unions are the two most common.
b. Although each type of depository institution is a little different, they are often referred to as “banks”.
c. Each type of depository institution is unique, so they should choose the type that works best to help them manage their money.
8. Slide 6: Josie a. Refer participants to the Josie’s Depository Institution Comparison
Chart 2.2.1.A3. b. Have participants work within their groups to analyze the chart to
determine if Josie’s depository institutions options 1 and 2 are credit unions or banks.
c. Have each group share their answers making sure they provide at least one reason for their choice.
d. Discuss the answers. i. Option 1 is a bank because it is open to anyone. ii. Option 2 is a credit union because it has membership
requirements (members must be a family member of a particular railroad system employee).
9. Slide 7: Location a. In addition to determining which type of depository institution is the
best match, a person may also want to consider the location of a depository institution.
b. Refer back to the depository institution in your community identified on slide 2. Ask participants if that depository institution has more than one branch.
10. Slide 8: Josie a. Ask participants to determine how Josie considered location when
choosing her top two depository institutions. Part 3: Depository Institution Insurance 11. Slide 9: Depository institutions keep your money safe
a. One of the most important services a depository institution offers is a
Show a video clip from the movie “It’s a Wonderful Life” to illustrate how banks work.
Learn how the center bank’s structure helps form a big picture view of the United States economy by watching “The Fed Explains Regional Banks” videos available on the Federal Reserve Bank website.
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safe and secure place to store money. b. Part of this security is offered by the bank itself in terms of having
security features such as safes and storing data on a secured network. However, the other part of this security is offered by depository institution insurance.
c. Discuss FDIC and NCUA insurance noting that the only difference is that FDIC covers all types of depository institutions except for credit unions. Since credit unions are a not‐for‐profit business they are covered by their own type of insurance.
d. Ask participants to determine how insurance can play a role in choosing a depository institution.
i. Tell participants that the majority of depository institutions are insured but there are some that are not insured. Therefore, before depositing your money into a depository institution account, make sure to ask if that depository institution is insured.
12. Slide 10: Josie a. Have participants refer to the Josie’s Depository Institution
Comparison Chart 2.2.1.A3 and work within their groups to determine if Josie’s choices are insured.
b. Discuss the correct answers. Insurance coverage is another clue to what type of depository institution option 1 and 2 are (option 2 is a credit union because it is covered by NCUA insurance).
Part 4: Depository Institution Services 13. Slide 11: Businesses offer services to the public
a. Assign each group one of the businesses listed on slide 11. b. In the first section, ask participants to brainstorm what type of
services their business offers to the public. i. For example, a gas station provides fuel, snacks, and limited
groceries. c. Allow a few minutes for participants to brainstorm services and then
ask a few groups to share what services their business type provides. 14. Slide 12: Services offered by depository institutions
a. Depository institutions are business just like gas stations, grocery stores, restaurants and clothing stores that provide services to the public.
b. Have participants brainstorm what types of services the depository institution in their community offers to the public.
c. Explain that depository institution services can be divided into five categories.
15. Slide 13: Depository institutions offer the ability to earn interest a. Discuss the definitions of interest and interest rates. b. Stress that a person may earn or be charged interest. When
depositing money at a depository institution you may earn interest, which is another benefit of using a depository institution.
16. Slide 14: Savings Tools a. Savings tools are one type of service a depository institution offers.
Savings tools help people manage their money by decreasing the
To reinforce the concept of keeping money safe in a depository institution, discuss the article regarding a man who accidently gave his life savings to goodwill. A link to one article is available in the supplemental resources section of this lesson.
Further explore the concept of depository institutions by reading articles on the student‐oriented Consumer Jungle website.
Use the Savings Tools Lesson Plan 2.4.3 to further explore features of savings tools.
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need to carry large amount of cash. b. Although there are many different types of savings tools, checking
accounts and savings accounts are the most common types. 17. Slide 15: Checking Account vs. Savings Account
a. Discuss the function of checking and savings accounts and how they differ from each other.
b. Ask participants if they should look for a high or low interest rate on a savings account. Discuss that they should look for a high interest rate because the higher the interest rate the more interest they will earn.
18. Slide 16: Josie a. Josie is looking for both a checking account and a savings account.
She would like a checking account that is linked to her savings account so she can transfer money into her savings account whenever needed.
b. Have participants review their Josie’s Depository Institution Comparison Chart 2.2.1.A3 and determine if both depository institution options have this ability. Both options do have the ability for a linked savings account.
c. Ask participants to determine why having a checking account linked to a savings account would be beneficial.
19. Slide 17: Credit a. If money is borrowed from a depository institution the borrower has
to pay back the money borrowed plus interest. 20. Slide 18: Other Services
a. Discuss financial advice, safe‐deposit boxes, and special needs payment instruments as other services that may be offered by depository institutions.
21. Slide 19: Using depository institution services a. If you want to use a depository institution service you should
determine what steps are needed to use that service by calling, visiting, emailing, or researching online.
b. A person may be required to have an account at a depository institution in order to use other services. For example, most depository institutions won’t cash a check unless you have an account with them.
c. If you are under the age of 18, in most cases you will need a parent/guardian signature to open an account at a depository institution. However, this does vary between depository institutions so ask about individual policies for those under 18.
Part 5: Depository Institution Features 22. Slide 20: Features of Depository Institutions
a. The services offered by depository institutions may offer certain features.
23. Slide 21: Online Banking a. Discuss online banking stressing that it may be used with many
different services, such as savings tools and credit. 24. Slide 22: Mobile Banking
a. Mobile banking is the same as online banking but it is an application
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© Take Charge Today – August 2013 – Introduction to Depository Institutions 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
that allows access from mobile devices such as smartphones and tablets.
25. Slide 23: Debit Cards a. A debit card has the same function as a check but it is electronic. b. Debit cards are common with checking and savings accounts.
26. Slide 24: ATM a. Stress that some number of ATMs available varies between
depository institutions. 27. Slide 25: Contactless Payment
a. If depository institutions offer contactless payment it will be used for debit and credit cards.
28. Slide 26: Cast your vote! a. Conduct a class survey to see which feature of depository institutions
is the most popular. b. The vote could be conducted in a variety of ways:
i. List each feature and have participants raise their hand to determine their vote.
ii. Have a station for each feature around the room and instruct participants to move to the part of the room coordinating with their favorite feature.
iii. If you have access to an interactive whiteboard, use the polling feature provided (if available).
iv. Use an online poll creator or brainstorming/discussion tool to conduct the vote. Refer to the Technology Integration Options Active Learning Tool 3.0.50 for samples and instructions.
c. Ask for volunteers from each group to explain why the feature chosen is their favorite.
Part 6: Depository Institution Fees 29. Slide 27: Fees
a. Depository institutions are a business and just as with any other business they may charge fees for certain services.
b. There are many different types of fees that vary between depository institutions and within different services offered at the same institution.
c. Discuss the example fees given stressing that these are only three examples; there are many other types of fees.
30. Slide 28: How do you manage fees? a. Discuss how with research and responsible management of accounts,
most fees can be avoided. Part 7: Choosing a Depository Institution 31. Slide 29: How do you choose one depository institution over another?
a. Discuss the factors to consider when choosing an institution that matches personal goals.
32. Slide 30: Which checking account should Josie choose? a. Print one copy of Help Josie Choose a Depository Institution Scavenger
Hunt Cards 2.2.1.H1 and cut apart the eight cards.
In addition to polling on the favorite feature, conduct a poll to determine which depository institution services and features participants already use (for example, checking accounts, debit cards, online banking, etc.).
Instead of conducting a scavenger hunt, hand one or two cards to each group. Or, read the cards yourself.
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b. Before class, place the eight cards in different places around the room.
c. Tell participants that there are eight cards hidden around the room that tell us more about Josie. In order to help her make a decision about which checking account to choose we need to find those cards.
d. Send participants on a “scavenger hunt” around the room to find the cards.
e. Once all eight cards have been found have participants return to their groups.
f. Have each person who found a card read that card to the class. After each card is read allow time for participants to complete the instructions given.
33. Slide 31: What did you learn about Josie? a. Review the factors that they should consider when helping Josie
choose option 1 or option 2 b. Have participants work within their groups to determine if they would
recommend Josie choose option 1 or 2. c. Ask groups to share their choice and a brief explanation as to why
they made that choice. Remind participants that there is no right or wrong answer.
34. Slide 32: Summary a. Review the major points of the lesson.
Option 2: PowerPoint Presentation with Josie at the End Approximate time: 90 minutes Materials to prepare: Introduction to Depository Institutions PowerPoint Presentation 2.2.1.G2 1 Introduction to Depository Institutions Note Taking Guide 2.2.1.L1 per
participant Optional: 1 Introduction to Depository Institutions Information Sheet 2.2.1.F1
per group of 2‐5 1 Josie’s Depository Institution Comparison Chart 2.2.1.A3 per participant 1 set of Help Josie Choose a Depository Institution Scavenger Hunt Cards
2.2.1.H1 1. Split participants into groups of 2‐5 to conduct group discussion and
brainstorming throughout the lesson. 2. Present the Introduction to Depository Institutions PowerPoint Presentation
2.2.1.G2. Part 1: What is a Depository Institution? 3. Slide 1: Introduction 4. Slide 2: What is a Depository Institution?
a. The term depository institution may be unfamiliar, but they have probably heard of a bank. A bank is a type of depository institution.
b. Ask participants to name one depository institution in their community.
Part 2: Locations and Insurance
Don’t distribute the Josie materials until the end of the presentation.
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5. Slide 3: Types of Depository Institutions a. Stress that there are multiple types of depository institutions.
Commercial banks and credit unions are the two most common. b. Although each type of depository institution is a little different, they
are often referred to as “banks”. c. Each type of depository institution is unique, so they should choose
the type that works best to help them manage their money. 6. Slide 4: Location
a. In addition to determining which type of depository institution is the best match, a person may also want to consider the location of a depository institution.
b. Refer back to the depository institution in your community identified on slide 2. Ask participants if that depository institution has more than one branch.
7. Slide 5: Depository institutions keep your money safe a. One of the most important services a depository institution offers is a
safe and secure place to store money. b. Part of this security is offered by the bank itself in terms of having
security features such as safes and storing data on a secured network. However, the other part of this security is offered by depository institution insurance.
c. Discuss FDIC and NCUA insurance noting that the only difference is that FDIC covers all types of depository institutions except for credit unions. Since credit unions are a not‐for‐profit business they are covered by their own type of insurance.
d. Ask participants to determine how insurance can play a role in choosing a depository institution.
i. Tell participants that the majority of depository institutions are insured but there are some that are not insured. Therefore, before depositing your money into a depository institution account, make sure to ask if that depository institution is insured.
Part 3: Depository Institution Services 8. Slide 6: Businesses offer services to the public
a. Assign each group one of the businesses listed on slide 6. b. In the first section, ask participants to brainstorm what type of
services their business offers to the public. i. For example, a gas station provides fuel, snacks, and limited
groceries. c. Allow a few minutes for participants to brainstorm services and then
ask a few groups to share what services their business type provides. 9. Slide 7: Services offered by depository institutions
a. Depository institutions are business just like gas stations, grocery stores, restaurants and clothing stores that provide services to the public.
b. Have participants brainstorm what types of services the depository institution in their community offers to the public.
c. Explain that depository institution services can be divided into five
Use an interactive whiteboard application to complete the activity on slides 11‐12 using tablets. Refer to the Tablets Applications for the Personal Finance Classroom Active Learning Tool 3.0.52.
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categories. 10. Slide 8: Depository institutions offer the ability to earn interest
a. Discuss the definitions of interest and interest rates. b. Stress that a person may earn or be charged interest. When
depositing money at a depository institution you may earn interest, which is another benefit of using a depository institution.
11. Slide 9: Savings Tools a. Savings tools are one type of service a depository institution offers.
Savings tools help people manage their money by decreasing the need to carry large amount of cash.
b. Although there are many different types of savings tools, checking accounts and savings accounts are the most common types.
12. Slide 10: Checking Account vs. Savings Account a. Discuss the function of checking and savings accounts and how they
differ from each other. b. Ask participants if they should look for a high or low interest rate on a
savings account. Discuss that they should look for a high interest rate because the higher the interest rate the more interest they will earn.
13. Slide 11: Credit a. If money is borrowed from a depository institution the borrower has
to pay back the money borrowed plus interest. 14. Slide 12: Other Services
a. Discuss financial advice, safe‐deposit boxes, and special needs payment instruments as other services that may be offered by depository institutions.
15. Slide 13: Using depository institution services a. If you want to use a depository institution service you should
determine what steps are needed to use that service by calling, visiting, emailing, or researching online.
b. A person may be required to have an account at a depository institution in order to use other services. For example, most depository institutions won’t cash a check unless you have an account with them.
c. If you are under the age of 18, in most cases you will need a parent/guardian signature to open an account at a depository institution. However, this does vary between depository institutions so ask about individual policies for those under 18.
Part 4: Depository Institution Features 16. Slide 14: Features of Depository Institutions
a. The services offered by depository institutions may offer certain features.
b. Assign each small group to one feature (online banking, mobile banking, debit cards, ATMs or contactless payment). Each group must identify what their feature is, what you can do with it and one piece of additional information.
i. If participants are familiar with depository institutions, have them complete this activity using their prior background knowledge. If they are unfamiliar with depository institutions,
Have groups record their responses on butcher paper.
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give each group one Introduction to Depository Institutions Information Sheet 2.2.1.F1.
c. Have groups share with the rest of the class and supplement the information shared with information on slides 15‐19 if necessary.
17. Slide 15: Online Banking a. Discuss online banking stressing that it may be used with many
different services, such as savings tools and credit. 18. Slide 16: Mobile Banking
a. Mobile banking is the same as online banking but it is an application that allows access from mobile devices such as smartphones and tablets.
19. Slide 17: Debit Cards a. A debit card has the same function as a check but it is electronic. b. Debit cards are common with checking and savings accounts.
20. Slide 18: ATM a. Stress that some number of ATMs available varies between
depository institutions. 21. Slide 19: Contactless Payment
a. If depository institutions offer contactless payment it will be used for debit and credit cards.
22. Slide 20: Cast your vote! a. Conduct a class survey to see which feature of depository institutions
is the most popular. b. The vote could be conducted in a variety of ways:
i. List each feature and have participants raise their hand to determine their vote.
ii. Have a station for each feature around the room and instruct participants to move to the part of the room coordinating with their favorite feature.
iii. If you have access to an interactive whiteboard, use the polling feature provided (if available).
iv. Use an online poll creator or brainstorming/discussion tool to conduct the vote. Refer to the Technology Integration Options Active Learning Tool 3.0.50 for samples and instructions.
c. Ask for volunteers from each group to explain why the feature chosen is their favorite.
Part 5: Depository Institution Fees & Choosing a Depository Institution 23. Slide 21: Fees
a. Depository institutions are a business and just as with any other business they may charge fees for certain services.
b. There are many different types of fees that vary between depository institutions and within different services offered at the same institution.
c. Discuss the example fees given stressing that these are only three examples; there are many other types of fees.
24. Slide 22: How do you manage fees? a. Discuss how with research and responsible management of accounts,
most fees can be avoided.
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b. Slide 23: How do you choose one depository institution over another? i. Discuss the factors to consider when choosing an institution
that matches personal goals. c. Slide 24: Summary
i. Review the major points of the lesson. Optional: Part 6: Josie 25. Slide 25: Meet Josie
a. Describe Josie and explain that she is looking for a depository institution to keep her money safe and pay her bills when she starts college next year.
26. Slide 26: Help Josie manage her money by choosing a depository institution a. Hand one Josie’s Depository Institution Comparison Chart 2.2.1.A3 to
each participant. b. Josie has found two depository institutions with branches in her
hometown and near the college she will be attending. c. She has summarized the information for both of these depository
institutions in the Josie’s Depository Institution Comparison Chart 2.2.1.A3 to help her make an informed decision.
d. Their mission is to learn more about Josie and about depository institutions to help Josie determine which depository institution she should choose to use.
27. Slide 27: Josie a. Have participants work within their groups to analyze the chart to
determine if Josie’s depository institutions options 1 and 2 are credit unions or banks.
b. Have each group share their answers making sure they provide at least one reason for their choice.
c. Discuss the answers. i. Option 1 is a bank because it is open to anyone. ii. Option 2 is a credit union because it has membership
requirements (members must be a family member of a particular railroad system employee).
28. Slide 28: Josie a. Ask participants to determine how Josie considered location when
choosing her top two depository institutions. b. Slide 29: Josie
i. Determine if Josie’s choices are insured. ii. Discuss the correct answers. Insurance coverage is another
clue to what type of depository institution option 1 and 2 are (option 2 is a credit union because it is covered by NCUA insurance).
29. Slide 30: Josie a. Josie is looking for both a checking account and a savings account. She
would like a checking account that is linked to her savings account so she can transfer money into her savings account whenever needed.
b. Determine if both depository institution options have this ability. i. Both options do have the ability for a linked savings account.
c. Ask participants to determine why having a checking account linked
Use the Help Josie Choose a Depository Institution 2.2.1.A4 worksheet instead of the PowerPoint to facilitate the Josie activity.
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to a savings account would be beneficial. 30. Slide 31: Which checking account should Josie choose?
a. Print one copy of Help Josie Choose a Depository Institution Scavenger Hunt Cards 2.2.1.H1 and cut apart the eight cards.
b. Before class, place the eight cards in different places around the room.
c. Tell participants that there are eight cards hidden around the room that tell us more about Josie. In order to help her make a decision about which checking account to choose we need to find those cards.
d. Send participants on a “scavenger hunt” around the room to find the cards.
e. Once all eight cards have been found have participants return to their groups.
f. Have each person who found a card read that card to the class. After each card is read allow time for participants to complete the instructions given.
31. Slide 32: What did you learn about Josie? a. Review the factors that they should consider when helping Josie
choose option 1 or option 2 b. Have participants work within their groups to determine if they would
recommend Josie choose option 1 or 2. c. Ask groups to share their choice and a brief explanation as to why
they made that choice. Remind participants that there is no right or wrong answer.
CONCLUSION OPTIONS There are two conclusion options provided for this lesson: 1. Option one: Financial Facts Feud 2. Option two: Depository Institution Advertisement
Option 1: Financial Facts Feud Approximate time: 30 minutes Materials to prepare: Financial Facts Feud Active Learning Tool 3.0.19.
o Feud Questions for Introduction to Depository Institutions Lesson Plan 3.0.19.K1
o Financial Facts Feud PowerPoint for Introduction to Depository Institutions Lesson Plan 3.0.19.G2.
2 taplights or buzzers at the front of the room set up for a face‐off 1. Conduct the Financial Facts Feud activity. This activity is similar to the
television game show Family Feud©. Instructions and questions for this activity are included in the Financial Facts Feud Active Learning Tool 3.0.19.
Option 2: Depository Institution Advertisement Approximate time: 15‐ 30 minutes depending upon the method used Materials to prepare: 1 Depository Institution Advertisement 2.2.1.B1 per participant Optional: Technology Integration Options Active Learning Tool 3.0.50 Optional: Depository Institution Advertisement Examples 2.2.1.E2
Let participants choose which option they would like to complete.
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1. Conduct the Depository Institution Advertisement 2.2.1.B1 activity. Two
options are available for the advertisement: a radio spot and a billboard. 2. If completing the billboard option consider providing participants with one or
all of the following options: a. Manually by using paper, crayons, colored pencils, markers, etc.
b. Electronically by utilizing desktop publishing software or an online
poster/collage maker. Refer to the Technology Integration Options
Active Learning Tool 3.0.50 for online poster/collage maker websites
and instructions.
3. An example is provided for both options on the Depository Institution Advertisement Examples 2.2.1.E2.
ASSESSMENT OPTIONS There are two assessment options provided for this lesson: 1. Option one: Reinforcement Worksheet 2. Option Two: Depository Institution Research
Option 1: Reinforcement Worksheet Approximate time: 20 minutes Materials to prepare: 1 What Do You Know About Depository Institutions 2.2.1.A5 per participant 1. Complete the What Do You Know About Depository Institutions 2.2.1.A5
worksheet as instructed.
Option 2: Depository Institution Research Approximate time: 60 minutes – possible time outside of class may be needed to conduct the research Materials to prepare: 1 Depository Institution Research 2.2.1.A6 per participant Optional: 1 Depository Institution Research Rubric 2.2.1.B2 per participant Optional: internet access
1. Individually or in small groups, complete the Depository Institution Research
2.2.1.A6. Participants conduct research on a depository institution and then write a short essay describing whether or not they would become a customer of that depository institution. Research may be conducted in a variety of ways depending upon what works in your classroom:
a. Call the depository institution b. Visit the depository institution website c. Visit the depository institution d. Email the depository institution
2. The Depository Institution Research Rubric 2.2.1.B2 is available for grading if desired.
Have participants create a presentation or some type of creation to share their research with the class. Then, have participants choose which depository institution they would choose out of those chosen.
Use the online resource “Find A Better Bank” to find depository institutions and conduct some or all of the research.
Require that the depository institution researched be one in your local community.
After the radio spot is written, have participants translate it into a speaking avatar. Refer to the Technology Integration Options Active Learning Tool 3.0.50 for websites and instructions.
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© Take Charge Today – August 2013 – Introduction to Depository Institutions 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
Introduction to Depository Institutions Vocabulary List
TERM DEFINITION
1 Automated teller machine (ATM)
A machine that allows individuals to complete certain transactions from the machine without human assistance
2 Checking account An account that allows quick access to funds for transactions
3 Commercial bank For‐profit depository businesses that offer financial services to both consumers and other
businesses
4 Contactless payment Payment transactions that can be completed with no physical connection between the payment device and the physical point of sale (POS) terminal or store clerk
5 Credit Union Depository institutions that offer many banking services and are owned by their customers
6 Debit card A plastic card that is electronically connected to the cardholder’s depository institution account
7 Depository institution Businesses that provide financial services
8 Interest The price paid for using someone else’s money
9 Interest rate The percentage rate used to calculate interest
10 Mobile banking Apps that many depository institutions have developed that allow online banking access from devices such as smartphones, tablets and other mobile devices
11 Online banking Allows customers to complete certain transactions from a secured Internet site by using a username and password from any place in the world with Internet access
12 Savings account An account at a depository institution that is designed to hold money not spent on current consumption
13 Savings tool Accounts offered by depository institutions whose main purpose is to help people manage their money
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© Take Charge Today – August 2013 – Introduction to Depository Institutions 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
Alike but Different
Total Points Earned Name
20 (1 point per box)
Total Points Possible Date
Percentage Class
Directions: Write the definition of each term in the space provided. When prompted by your instructor answer the remaining questions.
Commercial Bank
Definition:
Credit Union
Definition:
Checking Account
Definition:
Savings Account
Definition:
How are these terms alike? How are these terms alike?
How are these terms unique?
How are these terms unique?
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© Take Charge Today – August 2013 – Introduction to Depository Institutions 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
Online Banking
Definition:
Mobile Banking
Definition:
ATM
Definition:
Debit Card
Definition:
How are these terms alike? How are these terms alike?
How are these terms unique? How are these terms unique?
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© Take Charge Today – August 2013 – Introduction to Depository Institutions 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
Agree or Disagree?
Total Points Earned Name
12 (4 points per question)
Total Points Possible Date
Percentage Class
Directions: Complete the “Before” section by determining whether you agree or disagree with each statement and explaining your decision in the “comment” section. Complete the “After” section when prompted by your instructor.
A bank can help me positively manage my money.
Before After
Agree
Disagree
Agree
Disagree
Comment:
Comment:
I trust that my money is safe if I store it in a bank.
Before After
Agree
Disagree
Agree
Disagree
Comment:
Comment:
My money has the possibility to increase in value if stored at a bank.
Before After
Agree
Disagree
Agree
Disagree
Comment:
Comment:
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© Take Charge Today – August 2013 – Introduction to Depository Institutions 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
Introduction to Depository Institutions Note Taking Guide
Total Points Earned
Name
Total Points Possible
Date
Percentage
Class
Directions: Use the prompts provided to help you take notes during the lesson.
What is a depository institution?
Types of depository institutions
What are two characteristics of a commercial bank? 1.
2.
What are two characteristics of a credit union?1.
2.
Location How does location play a factor in choosing a depository institution?
Insurance What does depository institution insurance cover?
Services A person may earn or be charged interest from depository institution services.
What is interest?
What is an interest rate?
Savings tools are accounts that help you manage your money.The two most common accounts are checking accounts and savings accounts:
What is a checking account?
What is a savings account?
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© Take Charge Today – August 2013 – Introduction to Depository Institutions 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
What is credit?
What other services do depository institutions offer?
Features Online banking allows customers to complete certain transactions with their depository institution from a secured Internet site by using a username and password. What are two activities that may be completed with online banking? 1.
2.
How is mobile banking different from online banking?
What is a debit card?
An ATM is a machine that allows depository institution customers to complete certain transactions from the machine without the need for human assistance. What are two activities that may be completed with ATMs? 1.
2.
What is contactless payment?
Fees Fees will vary between institutions and within different services at the same institution.
Explain one type of fee that a depository institution may charge:
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© Take Charge Today – August 2013 – Introduction to Depository Institutions 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
Josie’s Depository Institution Comparison Chart
Total Points Earned Name
10 points for completion
Total Points Possible Date
Percentage Class
Directions: Josie has determined that she will use one of two depository institutions and has summarized the information regarding each depository institution below. Use the information provided by your instructor to determine which depository institution is the best choice for Josie.
Features Depository Institution Option 1 Depository Institution Option 2
Minimum account balance $0 $100; a $10 fee is charged if the balance is below $100
Monthly Service Fee None None
Debit Card Yes; free and unlimited usage Yes; free and unlimited usage
ATM Fee Yes; $2 if another institution’s ATM is used
No
ATM locations five within the college campus; three within the hometown area
two within the college campus area; two within the hometown area
Online banking Yes Yes
Mobile banking/Smartphone application
Yes No
Unlimited check writing Yes No; up to ten checks may be written each month
Free checks Yes Yes
Insufficient fund fees $24 per transaction $22 per transaction
Account overdraft protection Yes Yes
Linked Savings Account Option
Yes; ability to transfer unlimited funds to a savings account
Yes; ability to transfer unlimited funds to a savings account
Interest earned on balance No .02%
Branch locations within 5 miles of college
Yes; three of them Yes; one of them
Branch locations within 5 miles of hometown
Yes; two of them Yes; two of them
Branches in neighboring states
Yes No
Insurance provided on deposits
$250,000 per depositor, per account; covered by FDIC
$250,000 per depositor, per account; covered by NCUA
Accountholder requirements None Must be an employee (or related to an employee) of the railroad system Josie’s father is employed by
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© Take Charge Today – August 2013 – Introduction to Depository Institutions 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
Help Josie Choose a Depository Institution Scavenger Hunt Cards
Josie is super excited—in today’s mail
she received a letter that she was
selected to represent her new school on
the university track team! She is not
only excited because she will earn a
scholarship and loves track, but she will
also get to travel to neighboring states
for track meets.
Underline any information in Josie’s Depository Institution Comparison Chart that might help Josie make a choice related to this new information.
As an early graduation gift, Josie’s
grandmother purchased a smart
phone for her. She immediately grows
to enjoy the phone’s efficiency and
quickly learns that apps may be used
in many different ways—not only for
fun and communications but also for
managing her finances.
Write an “x” next to any information in Josie’s Depository Institution Comparison Chart that might help Josie make a choice related to this new information.
Since Josie is still learning about how to
best manage her finances, she has been
making some mistakes and not writing
down every transaction. This resulted in
four instances where Josie had
insufficient funds to cover all the
transactions she had authorized in the
last six months.
Place a checkmark beside any information in Josie’s Depository Institution Comparison Chart that might help Josie make a choice related to this new information
Each month, Josie will need to pay her
automobile insurance, cell phone bill,
and tuition. She will also need to write
some checks or use a debit card for
purchases such as textbooks, food, and
entertainment.
Circle any information in Josie’s Depository Institution Comparison Chart that might help Josie make a choice related to this new information.
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© Take Charge Today – August 2013 – Introduction to Depository Institutions 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
Josie is still learning to be responsible
with her finances, and sometimes
forgets to write down every transaction.
She will need an easy, quick way to
check her recent transactions as well as
her current checking account balance.
Write a “%” next to any information in Josie’s Depository Institution Comparison Chart that might help Josie make a choice related to this new information.
Josie’s sister opened an account at a
depository institution and later
learned that the monthly fees made
her responsible for nearly $50 a month
in charges. Josie wants to avoid this
costly mistake.
Draw a box around any information in Josie’s Depository Institution Comparison Chart that might help Josie make a choice related to this new information.
Since she will be on a tight budget as a
college student, she would prefer if she
didn’t have any minimum balance
constraints on her checking account.
Draw a star next to any information in Josie’s Depository Institution Comparison Chart that might help Josie make a choice related to this new information.
In an effort to save extra money, Josie
would like to find a depository
institution that offers additional
earnings for deposits.
Draw a “$” next to any information in Josie’s Depository Institution Comparison Chart that might help Josie make a choice related to this new information.
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© Take Charge Today – August 2013 – Introduction to Depository Institutions 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
Help Josie Choose a Depository Institution Total Points Earned
Name
24 Total Points Possible
Date
Percentage
Class
Josie is a senior in high school who will be graduating in a few months. She has already been accepted to a
university that is a three hour drive from her home. While she is excited about moving on to the next phase
of her life, she’s a little nervous about some of the important decisions she will be making‐‐‐moving out of
her parents’ home and into the dorms at a college, choosing classes for her schedule, and finding a part‐time
job.
Josie is also going to need to make some decisions about her money. She knows it’s not safe to carry all of
her cash in her pocket, and while she won’t have a lot of bills to pay, she needs to be able to write a few
checks each month and utilize a debit card to have access to her funds. Josie has done a little research on
depository institutions in her area that also have branches nearby the college she will be attending, and has
narrowed her choices to the two options described in the Josie’s Depository Institutions Comparison Chart.
Follow the steps below to learn more about depository institutions in order to help Josie choose the
depository institution that is best for her.
Step One:
1. Examine Josie’s Depository Institutions Comparison Chart 2.2.1.A3 and determine if Depository Institution
Option 1 and Option 2 are a bank or a credit union. (4 points)
Depository Institution Option 1 Depository Institution Option 2
Is this depository institution a bank or a credit union?
Give one reason to support your answer.
2. How did location influence Josie’s selection of her top two depository institutions? (1 point)
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© Take Charge Today – August 2013 – Introduction to Depository Institutions 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
Step Two:
3. While watching the news today, Josie saw that a local depository institution is closing. Now that she understands the importance of depository institution insurance, she wants to ensure her choices are insured. (4 points)
Is Depository Institution Option 1 insured? Explain how you determined the answer.
Is Depository Institution Option 2 insured? Explain how you determined the answer.
Step Three:
4. Josie is looking for a checking account that is linked to a savings account. This will allow her to transfer money from her checking account to her savings account when needed. (2 points)
Does Depository Institution Option 1 have a savings account linked to the checking account?
Does Depository Institution Option 2 have a savings account linked to the checking account?
Step Four:
5. Your instructor will provide you with more information about Josie to help make a decision regarding which depository institution is best for her. Record what you learned about Josie below: (8 points)
1. 2.
3. 4.
5. 6.
7. 8.
6. Using the information you know about Josie, which checking account would you recommend she choose
– option 1 or option 2? Explain your choice with at least three reasons. (5 points)
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© Take Charge Today – August 2013 – Introduction to Depository Institutions 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
Depository Institution Advertisement Total Points Earned
Name
21 Total Points Possible Date
Percentage Class
Directions: You work at a depository institution and have volunteered to create an advertisement for the
depository institution. The advertisement should convince current and potential customers that your depository
institution is the best to use. You have two options for the advertisement: a radio spot or a billboard.
Radio Spot: A radio advertisement is often known as a “radio spot.” If you choose this option you will
write a script for the radio advertisement that is approximately 30 seconds long.
Billboard: A billboard is a large outdoor sign that is used to advertise businesses, goods, services, and
ideas to consumers. If you choose this option, you will design a billboard using the materials provided by
your instructor. Remember that billboards must be eye‐catching and appealing so that those passing by
will take time to read the advertisement (the words must be large enough to read as well).
Be creative! You will be graded on the following:
Exemplary Satisfactory Unsatisfactory No Performance
Score
Content: The advertisement convinces current
and potential customers that the depository institution is the best to use
Information is accurate
9‐7 6‐4 3‐1 0
Writing Skills: Sentences are fluent and effective Very few errors in mechanics,
punctuation and word choice
6‐5 4‐3 2‐1 0
Effectiveness of Presentation: Clearly prepared Easily read and neatly assembled Eye catching and compelling Minimum of one‐page, double‐
spaced with 12 font and 1‐inch margins.
6‐5 4‐3 2‐1 0
Total Points Earned Total Points Available 21
Percentage
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© Take Charge Today – August 2013 – Introduction to Depository Institutions 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
Depository Institution Advertisement Examples
Billboard example:
Radio Spot Example: Is your piggy bank overflowing…. or maybe not flowing at all? In either case, “Interest”ed In You Bank can help you! We offer a wide variety of services to
our customers along with knowledgeable employees and a convenient location to make your daily financial tasks as simple and quick as possible. Do you
need to open a savings account to store the money in that overflowing piggy bank? With our high interest rates, there is no reason not to make a visit to
“Interest”ed In You Bank, located at the intersection of Savings and Spending Streets in Depository Institution Square. No matter what your financial
needs are we can help, because we are “Interest”ed In You!
Considerate Credit Union
Then, you will love our FREE electronic banking options!
We care about you!
Mobile Banking Online Banking Debit Cards
Dislike paper cuts?
Despise writer’s cramp?
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© Take Charge Today – August 2013 – Introduction to Depository Institutions 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
What Do You Know About Depository Institutions?
Total Points Earned
Name
29 Total Points Possible
Date
Percentage
Class
Directions: Choose whether each statement describes a credit union, commercial bank, or both by placing the corresponding letter in the blank. (1 point each) _____ 1. Anyone can open an account here _____ 2. Offers financial services to the public _____ 3. Owned by their customers _____ 4. In business to make money _____ 5. Membership requirements to open an account
A. Credit Union B. Commercial Bank C. Both
Directions: Answer the following questions with complete sentences. 6. What are two benefits depository institutions can provide? (2 points) 7. What would be the three most important factors that you would consider when deciding which
depository institution fits your needs? Explain. (3 points) 8. What are two ways depository institutions keep your money safe? (2 points) 9. What is the difference between a checking account and a savings account? (2 points)
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© Take Charge Today – August 2013 – Introduction to Depository Institutions 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
10. What is one example of a special needs payment instrument? (1 point) 11. Describe the difference between online banking and mobile banking. (2 points) 12. What are three activities that may be completed with online banking? (3 points) 13. What are two activities that may be completed with an ATM? (2 points) Directions: Circle whether each of the following statements are true or false. (1 point each) T F 14. A debit card can be described as an electronic check that requires a PIN. T F 15. All depository institutions offer ATM’s in many different locations. T F 16. If a merchant accepts debit cards, that place of business will also offer contactless payment as an option. T F 17. An overdraft fee may be charged if you exceed your checking account balance when using your debit card. T F 18. All depository institutions are required by law to charge the same fees. T F 19. One person can open accounts at more than one depository institution. T F 20. A person can earn and be charged interest.
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© Take Charge Today – August 2013 – Introduction to Depository Institutions 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
Depository Institution Research
Total Points Earned
Name
Total Points Possible
Date
Percentage
Class
Directions: Complete each section below by following the directions provided. Before Research
What would be the three most important things you would look for in a depository institution? (3 points) 1.
2.
3.
Research
Find a depository institution that offers at least one type of checking account and one type of savings account. Decide whether or not you should become a customer of this depository institution by conducting research and answering the questions in the table below. (15 points for completion)
What is the name of the depository institution you are researching?
What type of depository institution is it?
Commercial Bank Credit Union Other. Please indicate the type:
Location:
Does this depository institution have a physical location or is it available only online? If there are physical locations, how many locations does the depository institution have?
Online only
Physical location(s) available
Only one location available
Multiple locations available locally
Multiple locations are available across the state
Multiple locations are available across the nation
Other. Please explain:
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© Take Charge Today – August 2013 – Introduction to Depository Institutions 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
Insurance:
Is this depository institution insured?
Yes No
Checking account:
Does the depository institution offer more than one type of checking account? If so, choose one checking account and answer the questions below.
Only one type of checking account is available
Multiple types of checking accounts are available.
Which checking account did you choose?
Are there any fees associated with this checking account? If so, can you avoid the fee(s) by managing your account responsibly or is there a non‐avoidable fee(s)? Explain.
No fees Fees:
Does the checking account offer unlimited check writing? If not, what is the limit?
Unlimited check writing Limited check writing. What is the limit?
What is one other thing you would like to know about checking accounts before making your decision?
Savings account:
Does the depository institution offer more than one type of savings account? If so, choose one savings account and answer the questions below.
Only one type of savings account is available
Multiple types of savings accounts are available. Which savings account did you choose?
What is the current interest rate on the savings account? If the rate is not listed online, what email or phone number could you use to learn?
Are there any fees associated with this savings account? If so, can you avoid the fee(s) by managing your account responsibly or is there a non‐avoidable fee(s)? Explain.
No fees Fees:
Is there any other information that is important to consider about this savings account?
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© Take Charge Today – August 2013 – Introduction to Depository Institutions 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
Features Offered
Does the depository institution offer debit cards as part of their accounts?
Yes No
How many (if any) ATMs does the depository institution have?
ATMs are not available
ATMs are available. Describe how you know ATM’s are available in your desired location.
Does the depository institution offer online and/or mobile banking?
Online banking is not available Online banking is available Online and mobile banking is available
Other Services:
Describe one other service this depository institution offers.
Other information:
What is one other piece of information that is important to know if deciding whether or not to become a customer of this depository institution.
Research Reflection
After examining your research, is this a depository institution that you would become a customer of? Make sure to consider the three items you identified as important factors to consider when choosing a depository institution. Answer this question in a well‐written paragraph. Provide at least three reasons to support your decision. (21 points – see rubric)
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© Take Charge Today – August 2013 – Introduction to Depository Institutions 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
Depository Institution Research Rubric
Total Points Earned
Name
Total Points Possible
Date
Percentage
Class
Directions: After examining your research, is this a depository institution that you would become a customer of? Make sure to consider the three items you identified as important factors to consider when choosing a depository institution. Answer this question in a well‐written paragraph. Provide at least three reasons to support your decision.
Exemplary Satisfactory Unsatisfactory No Performance
Score
Content: Identified the three most important
factors to consider when choosing a depository institution
Information is accurate Thorough research was conducted
and all questions were answered More than 3 reasons were provide to
support the decision
9‐7 6‐4 3‐1 0
Writing Skills: Sentences are fluent and effective Very few errors in mechanics,
punctuation and word choice
6‐5 4‐3 2‐1 0
Effectiveness of Presentation: Easily read and neatly assembled Minimum of one‐page, double‐
spaced with 12 font and 1‐inch margins.
6‐5 4‐3 2‐1 0
Total Points Earned Total Points Available 21
Percentage
2.2.1.F1
© Take Charge Today – August 2013 – Introduc on to Depository Ins tu ons – Page 1 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Ins tute at The University of Arizona
Introduc on to Depository Ins tu ons
Advanced Level Millions of people use financial services offered by depository ins tu ons on a daily basis to help them manage their
money. Commercial banks, credit unions, and savings banks are all examples of depository ins tu ons. Many types of
companies offer financial services to consumers. But, depository ins tu ons are special in that they accept deposits from
consumers and the safety of those deposits is o en guaranteed by the government. The range of valuable services ed to
deposit accounts (online banking, checking accounts and debit cards, bill payment services, automa c savings transfers)
makes depository ins tu ons an important component to a financial plan.
Types of Depository Ins tu ons
Do you use a depository ins tu on? If so, what kind of depository ins tu on is it? If not, what features of a depository
ins tu on do you think would work best for you?
Commercial banks are for‐profit depository businesses that offer financial services to both consumers and other
businesses. Banks are usually the largest depository ins tu ons and offer the widest variety of services to customers.
Credit unions are depository ins tu ons that offer many banking services. But, unlike banks, they are owned by their
customers, who are usually called members. A credit union has membership qualifica ons that require its members share
a common bond such as the same employer, the geographic area in which they live or membership in an organiza on.
Credit unions are non‐profit organiza ons exempt from federal income tax. This feature o en allows them to pay higher
interest rates on deposits, charge lower interest rates on loans and charge lower fees, compared to banks and other
depository ins tu ons.
Commercial banks and credit unions are the most commonly used depository ins tu ons. Although both types of
ins tu ons offer a range of “banking” services, they are actually quite different in terms of their ownership structure
and the types of consumers they serve.
The physical loca on of a depository ins tu on may influence your choice. Here are some ques ons to consider when
choosing a depository ins tu on that best fits your financial needs:
Is the depository ins tu on accessible; does it have mul ple loca ons close to home, work and school?
Does the depository ins tu on have loca ons (branches) throughout the United States (something to consider if
you travel a lot or plan to move)?
What type of transporta on is required to access a branch if it isn’t within walking distance?
If you are considering a depository ins tu on whose services are offered only online, will that type of access meet
your financial needs?
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Deposit Insurance
One of the most important services that a depository ins tu on offers is a safe and secure place to deposit your money
for future use. Stashing your money away in what you might consider a “safe” loca on within your home or having large
sums of cash in your wallet is financially risky. If lost or stolen your money is most likely gone for good.
However, depository ins tu ons offer secure storage of both cash and transac on data. Most importantly, deposits in
many banks and credit unions are protected by insurance provided by two federal government agencies know as the
Federal Deposit Insurance Corpora on (FDIC) and the Na onal Credit Union Administra on (NCUA).
As long as you stay within the coverage limits your money is safe from loss due to the or failure of the financial
ins tu on. Not all depository ins tu ons are covered by the FDIC or NCUA, so you should check for coverage before
deposi ng any money.
Services Offered by Depository Ins tu ons
Depository ins tu ons offer a wide variety of financial services to their
customers. The services offered and the terms and condi ons (such as features
and fees) will vary for every service at every depository ins tu on.
Transac on and Savings Tools
Think about how you make purchases at the point of sale. Managing a large
amount of cash (and protec ng it from risks) can be overwhelming and me
consuming. Depository ins tu ons offer services that allow you to use your
money without having to handle cash. These services are known as transac on
and savings tools. They are accounts offered by depository ins tu ons whose
main purpose is to help people manage their money.
Transac on and savings tools may or may not earn interest. Interest is the price paid
for using someone else’s money. If you deposit money in an interest‐earning savings
tool account you will be paid interest during the me the ins tu on holds your funds
and uses it for its own purposes. The depository ins tu on is essen ally “borrowing”
your money. Eventually you’ll see your ini al deposit grow over me as it accrues
interest paid by that ins tu on.
Are you currently earning any interest? If so, on what?
Federal Deposit Insurance Corpora on (FDIC)
The FDIC is a federal government agency that insures
depository ins tu ons that have elected for FDIC
coverage against loss. The standard insurance amount is
$250,000 per depositor, per insured ins tu on, for each
account ownership category.
Na onal Credit Union Administra on (NCUA)
The NCUA provides insurance protec on for credit unions.
The coverage is the same as with the FDIC; each depositor
is insured against loss up to a maximum of $250,000
against loss.
If you want to earn interest on
your deposits look for high
interest rates. When you borrow
money and have to pay interest
look for low interest rates.
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The two most common types of transac on and savings tools are checking and savings accounts:
Checking Account
A checking account allows you quick access to funds for transac ons. You’re able to transfer money from one account to another or directly to another person through the use of paper checks, debit cards or withdrawing cash directly from your checking account.
Checking accounts are very popular among consumers because they reduce the need to carry large amounts of cash and are easy to use and manage. Some checking accounts earn interest but most do not.
Checking accounts at credit unions are known as share dra accounts. This type of account also provides an easy method for accessing your money.
Savings Account
A savings account is the most common type of bank account and may be the first type of account you open at your depository ins tu on. Savings accounts are generally for money that you don't intend to use for daily expenses. Your savings account will earn interest on its balance and be stored in a secure loca on. To open a savings account, simply go down to your local bank with proper iden fica on and ask to open an account.
A savings account at a credit union is some mes referred to as a share account and is required for membership.
Special Needs Payment Instruments
Traveler’s checks, cer fied checks, cashier’s checks and
money orders are all special payment instruments that
have a specific func on and are available at most
depository ins tu ons.
Which depository ins tu on services would be the most important to you?
To use any of the services offered by depository ins tu ons, call, visit, email or search the depository ins tu on’s website
to determine what steps are needed to use the service you desire. You may be required to have an account to use their
services. If you are under the age of 18, in most cases, you will need a parent/guardian signature to open an account.
Has opening a checking or savings account posi vely influenced the way you manage your money? If you haven’t opened
up one at this point in your financial life, can you iden fy ways a bank account might influence your money management
habits in the future?
Credit
Credit products allow you to borrow money from the
financial ins tu on in exchange for your promise to repay
those funds in the future. Depository ins tu ons may
provide a variety of credit products such as loans for the
purchase of a house, auto or educa on. Many depository
ins tu ons also offer credit cards to their customers. When
you apply for credit, the financial ins tu on will determine
whether you qualify for the loan based on their assessment
of the likelihood that you will repay as agreed. The
ins tu on will also determine the amount of me you have
to repay, and the price of the loan, in the form of the
interest rate to be charged on the amount of money you
owe. By agreeing to these loan terms you will agree to pay
the depository ins tu on back the money borrowed plus
interest.
Financial Advice
Depository ins tu ons
may also offer
informa on, advice and
assistance regarding a
wide range of financial‐
related topics including
investments and estate
planning.
Safe‐Deposit Box
A safe‐deposit box is a secured
box at a depository ins tu on
that you can use to store
valuable personal items. Many
people use safe‐deposit boxes
to store important paperwork
such as birth cer ficates,
Social Security cards and wills.
Addi onal services offered by many depository ins tu ons include:
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Addi onal Features of Depository Ins tu on Services
The services offered by depository ins tu ons may offer certain features such as online banking, mobile banking, debit
cards, ATMs and contactless payment.
Online banking
A depository ins tu on may offer online banking, also known as Internet banking, as a feature of their services.
Online banking allows customers to complete certain transac ons from a secured Internet site by using a
username and password from any place in the world with Internet access. Online banking ac vi es include
accessing account informa on and statements, transferring money between accounts, paying bills and applying for
credit. In addi on to paying bills online, consumers may also be able to set up a recurring bill payment. The payment will
occur automa cally on a specific date each month without the customer having to write a check or ini ate the payment.
However, if you use recurring payment it is your responsibility to make sure that your account has sufficient funds in it to
cover the amount of the automa c payment.
Many depository ins tu ons have developed apps that
allow online banking access from devices such as
smartphones, tablets and other mobile devices. This is a
form of online banking known as mobile banking.
Debit cards
A debit card is electronically connected to the cardholder’s depository ins tu on account. Debit cards allow customers
easy access to money in their savings and checking accounts either at the point of sale or through an automated teller
machine (ATM). As a payment tool, debit cards func on in the same manner as a check, but debit transac ons are faster
and more portable because they are electronic. Debit cards also allow customers to withdraw cash or electronically
access their accounts to transfer funds between accounts or view balances. In most cases, debit cards require using a
personal iden fica on number (PIN) or signature to perform transac ons. The PIN or signature authorizes the user of the
debit card to access the money in the corresponding account.
Automated teller machines (ATMs)
An ATM is a machine that allows individuals to complete certain transac ons from the machine
without human assistance. ATMs are accessed via an ATM card (which is usually also the customers
debit card) plus the PIN that accompanies that card. ATMs allow customers to withdraw and
deposit money into their account(s), as well as make account transfers and view account balances.
The number and loca on of ATM’s varies by depository ins tu on.
Contactless payment
Contactless payment transac ons can be completed with no physical connec on between the payment device and the
physical point of sale (POS) terminal or store clerk. If a depository ins tu on offers contactless payment op ons then you
will receive a debit card, credit card, or some other type of electronic card that allows you to simply “wave” the card in
front of a sensor to make a purchase (some mes you may have to also enter a PIN for the payment to authorize). This
allows for fast payment transac ons, but not all merchants have the technology to support contactless payment.
What is one advantage to online and/or mobile banking?
What features of depository ins tu on services would ma er to you?
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Fees
Depository ins tu ons o en charge fees for certain services. Fee levels are important to consider when choosing a
depository ins tu on for your accounts. Examples of fees include:
Minimum balance fees ‐ Some accounts
require a minimum account balance. If you
go below that balance you will be charged a
fee. Before opening an account ask if there
is a minimum balance amount and
determine if you are OK with the minimum
balance amount.
Depository ins tu ons o en charge many other types of fees. Fees can vary greatly across depository ins tu ons.
Researching poten al fees that you may face as an account holder is an important part of choosing a depository
ins tu on. Ask for a list of fees when opening an account. Most fees charged for items and transac ons can be avoided
if you manage your account(s) well.
Choosing a Depository Ins tu on
Now that you know about the many benefits and services a depository ins tu on can offer, you may want to become a
customer. The most important factor when choosing a depository ins tu on is to select one that helps you meet your
financial goals. You may have more than one type of account with a single depository ins tu on or open accounts with
mul ple ins tu ons.
Consider the following factors when choosing a depository ins tu on(s) that helps you reach your financial goals:
Fees charged
Type of depository ins tu on
Loca on
Insurance of deposits
Depository ins tu ons are a valuable tool to help you manage your money in a posi ve manner.
Choose a depository ins tu on that will help you reach your financial goals.
What two factors are most relevant to you when choosing your depository ins tu on?
Products and services offered
Interest rates on loans and deposits
Features offered
Overdra fee – A fee charged if you
withdraw more money from your
account than is available. Some
depository ins tu ons offer overdra
protec on that helps you avoid
overdra fees if you exceed your
account balance.
ATM fees – Your depository
ins tu on may charge you for
using an ATM that belongs to
another depository ins tu on.