V Activity 1ƦƦ.Where Do I Keep My Money?

V Activity 2ƦƦ.Evaluating Financial Services

V Activity 3ƦƦ.Banks, Yesterday and Today
 ACTIVITY 1

Where Do I Keep My Money?

Overview

x The functions of banks

x The cost of alternative financial services
x The stability of banks

3
 ½
 TO 
 MON

Would you save your money in any of these

places? Why? Why not? an you think of other
places to save money?

 Bed & Mattress

 Cookie Jar
 illow
 Wallet
 Money Belt
 Small House Safe
4

TN
TI FIN
NI
I

 Check-Cashing Services
 Check-Deferrals, Cash Advances, ayday Loans
 awn Shops

apid Tax
efunds

ent-to-Own
 Other Financial Services

5
 FD
D½OIT IN
N
O½O
TION (FDI

 Established in 1933.
 Insures most Savings, Checking,
and other Deposit Accounts,
up to $100,000 per depositor,
per institution.
 Applies to most Commercial
Banks, Savings Banks, and
Savings Associations.

6
 ACTIVITY 2
valuating Financial ervices
Overview

 Formal and informal financial services

 Costs of alternative financial services and
average bank accounts
 Advantages of establishing a banking relationship

7
 FOM
INFOM

FIN
NI
FIN
NI

I I
 Accounts  ayday lenders
 Credit cards  Check cashing services
 Loans 
ent-to-own stores
 Investment vehicles  awn shops
 Direct deposit  Title lenders
 Wire transfers/ remittances  Loans from family/friends
 Cultural savings clubs

emittances offered through
nonfinancial institutions

8
 ^OW
B
NK 
N 
 O MON
Monthly Fees without a Bank
 $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
Annual Savings by Using a Bank:
Monthly Fees with a Bank*
 $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: $60.00



9

D
NT
 OF T
B I^IN

B
NKIN 
TION^I½
ëearly everyone needs a bank account to help manage his
or her day-to-day money.

Bank accounts can help you to:

 ay bills
 Manage your money

eceive money
 Send money to a friend or family member
 Keep your money secure
 Start building wealth
 Earn interest

10
 ACTIVITY 3
Banks esterday
and Today
Overview

 The many traditional financial services provided

by a bank
 Other expanded financial services provided by a
bank
 The impact of banks throughout the community

11
 T
DITION

I
OF B
NK
 Checking Accounts
 Savings Accounts
 CDs (Certificates of
Deposit)
 Savings Bonds
 Loans
 Car
 Home
 ersonal
 Safe Deposit Boxes
12
 T
DITION
½
NDD
I I
OF B
NK OF B
NK
 Checking Accounts  Insurance Sales
 Savings Accounts  Small Business Advising
 CDs (Certificates of and Loans
Deposit)  Investments
 Savings Bonds  Credit Cards
 Loans 
emittances
 Car
 Home
 ersonal
 Safe Deposit Boxes
13
 FIN
NI
I
MODNIZ
TION
T (
Transformed the banking industry. Eliminated many
restrictions among companies in the securities,
banking, and insurance industries.

esults?
 Banks may offer some insurance and investment
services.

 Investment and insurance companies may offer

some traditional banking services. Investments are
not insured by FDIC.
14
 OM OMMNIT
TD
I OF B
NK

 Bank employees mentor students in areas of

basic financial skills.

 Bank employees serve on community

organizationsƞ boards of directors.

 Banks provide scholarships to students going

into the banking profession.

 Banks fund affordable housing construction.

15