Activity 1

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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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Introduction to Financial Services - Activity 1
ACTIVITY 1 Where Do I Keep My Money? Overview
The functions of banks The cost of
alternative financial services The stability
of banks
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Slide 1 - Places to Save MoneyLesson Reference
Introduction to Financial Services, Activity 2
Overhead 1

• 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

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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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Slide 3 FDIC Lesson Reference Introduction to
Financial Services, Activity 1 Overhead 2

• FEDERAL DEPOSIT INSURANCE
• CORPORATION (FDIC)
• 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.

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ACTIVITY 2Evaluating Financial Services

• Overview
• Formal and informal financial services
• Costs of alternative financial services and
  average bank accounts
• Advantages of establishing a banking relationship

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Introduction to Financial Services Activity 2
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• INFORMAL
• FINANCIAL
• SERVICES
• 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 1 Formal and Informal Financial
Services Lesson Reference Introduction to
Financial Services, Activity 2 Overhead 1
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HOW A BANK CAN SAVE YOU MONEY Monthly Fees
without 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

• 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 1,125.72
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Slide 2 How a Bank Can Save You Money Lesson
Reference Introduction to Financial Services,
Activity 2 Handout 2
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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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Slide 3 Advantages of a Banking Relationship
Lesson Reference Introduction to Financial
Services, Activity 2 Overhead 2
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Introduction to Financial Services - Activity 3
ACTIVITY 3Banks, Yesterdayand 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

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Slide 1 - Traditional Services of Banks Lesson
Reference Introduction to Financial Services,
Activity 3 Overhead 1

• TRADITIONAL
• SERVICES
• OF BANKS
• Checking Accounts
• Savings Accounts
• CDs (Certificates of Deposit)
• Savings Bonds
• Loans
• Car
• Home
• Personal
• Safe Deposit Boxes

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Slide 2 - Expanded Services of Banks Lesson
Reference Introduction to Financial Services,
Activity 3 Overhead 2

• EXPANDED
• SERVICES
• OF BANKS
• Insurance Sales
• Small Business Advising and Loans
• Investments
• Credit Cards
• Remittances

• TRADITIONAL
• SERVICES
• OF BANKS
• Checking Accounts
• Savings Accounts
• CDs (Certificates of Deposit)
• Savings Bonds
• Loans
• Car
• Home
• Personal
• Safe Deposit Boxes

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Slide 3 - Financial Services Modernization Act
Lesson Reference Introduction to Financial
Services, Activity 3 Overhead 3

• FINANCIAL SERVICES
• MODERNIZATION 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.

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Slide 4 - Some Community-Related Services Lesson
Reference Introduction to Financial Services,
Activity 3 Overhead 4

• SOME COMMUNITY-RELATED
• SERVICES 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.

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