Dollars and Sense

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Dollars and Sense

• A Financial Workshop for International Students.

Presented by Denise Brady VP Business
Development SIU Credit Union
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Account Basics Savings Accounts

• Save for large purchases, investments and
  emergencies.
• Very safe. Low risk.
• Usually limits the number of withdrawals.
• Not for immediate access.

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Account Basics
Savings Accounts

• Interest Payment you receive for allowing the
  financial institution to use your money.
• Usually pays a low interest rate.
• Low risk. Low interest.

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Account Basics
Checking Accounts

• Pay daily and monthly living expenses.
• Bills, car and loan payments, groceries,
  entertainment.
• Access money with checks, debit card or automatic
  debit.

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Account Basics
Checking Accounts

• Make deposits at FI or by direct deposit.
• Keep record of your transactions.
• Verify balance with statement or online banking.

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Account Basics
Checking Accounts

• Free checking does not pay interest.
• High minimum balance checking accounts may pay
  interest.
• Safe, convenient, provides proof of payment and
  tracking.

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Account Basics
Check Writing

• Used to pay bills that must be mailed or
  individuals.
• Provides a record of payment.
• Cost 8.00 25.00. Debited from checking
  account.
• Write checks in ink to avoid alteration and
  fraud.

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Account Basics Check Writing

• Elements of a check
• Date
• Pay to the order of
• Number line
• Legal line
• Signature line
• Endorsement

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Account Basics
Debit Cards

• 24/7 access to checking account funds.
• Purchases are deducted from checking account.
• ATM withdrawals may be deducted from checking or
  savings.
• May use around the world.

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Account Basics
Debit Cards

• Protect your debit card
• Do not let anyone else use your card.
• Do not give PIN to anyone.
• Do not write PIN down.
• Replace card in same location in wallet or
  purse after each use.
• Report loss of card to FI as soon as possible.

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Account Basics
Open Account

• Photo ID Passport or drivers license
• Social Security Number or W 8 BEN
• First deposit

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Account Basics
Open Account

• Complete signature card. Provide name, address,
  phone number and signature.
• Sign up for extra services like 24/7 phone
  access, online banking, debit card, e-statements.

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Account Basics
Overdrafts

• Occurs when you write checks or make debit card
  purchases for more than you have in your checking
  account.
• Balance becomes negative.
• FIs charge a fee between 25.00 - 30.00.

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Account Basics
Overdrafts

• FIs return check to merchant.
• Merchant charges a returned check fee of 25.00
  - 30.00.
• Excessive overdrafts will result in a closed
  account.
• Merchants will refuse to accept your checks.

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Account Basics
Overdrafts

• Avoid overdrafts by
• Tracking your expenses.
• Using 24/7 phone access or online banking.
• Set up overdraft protection.

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Credit Credit Cards

• Purchases become a loan from the FI that issued
  the card.
• Must repay the debt.
• FI charges interest on the loan.

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Credit Credit
Cards

• Use wisely for appropriate purposes.
• Good tool for money management but can be costly
  if used indiscriminately.
• Use for large purchases, emergencies, unexpected
  opportunities.
• Do not use for daily or monthly living expenses.

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Credit Credit Cards

• Monthly statement that details purchases and
  payments.
• Failure to pay by due date will result in late
  charge.
• Delinquent accounts will appear in credit history.

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Credit Credit History

• Commonly called credit report.
• Record available to FIs, businesses, landlords of
  payment of debt loans, credit cards, and bills.
• Reports debt balances, payment history, and
  paid-on-time record

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Credit Credit History

• Lenders review to see how well you have managed
  credit in the past.
• Calculates a score that signifies level of
  risk.
• Loan or credit decisions are based on this score.

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Credit Credit History

• Consequences of Not Repaying Debt
• Ruin credit history.
• Unable to get loans in future.
• Unable to purchase big ticket items.
• Unable to obtain desired job.
• Pay higher prices for loans.
• Pay fees associated with late payments.