INTRODUCTION TO BANKING

1
INTRODUCTION TO BANKING

• An overview of making the most of the banking
  system

2
GROSS INCOME

• How are we paid?
• Hourly
• Piecework
• Commission
• Salary

3
NET INCOME

• What is deducted?
• Federal Taxes
• State Taxes
• Social Security/Medicare
• Medical Insurance
• Other

4
NOW WHAT?

• Where should we put our money?
• At Home
• Bank
• Invest
• Spend

5
BANKS

• Commercial Banks
• Savings Loans Associations
• Credit Unions

6
COMMERCIAL BANKS

• Most common bank. Commercial banks provide a
  wide variety of services including savings and
  checking accounts, and loans. Commercial banks
  are governed by a board of directors and
  regulated by state or federal government.

7
SAVINGS LOAN ASSOCIATION

• This type of bank used to provide mainly home
  loans using the money from the customers savings
  account. Currently, S L banks can provide all
  of the services as a commercial bank except that
  all checking accounts offered must pay interest.
  An advantage of using an S L is that their
  interest rates on savings accounts are usually
  higher.

8
CREDIT UNION

• A credit union is a bank that is formed by a a
  group of people who work for the same company,
  are in the same field, or have something else in
  common. You can only belong if you are in the
  group. The bank is owned by the members, so
  profits are divided among the members. Interest
  rates tend to be higher on savings and lower on
  loans.

9
BANK SERVICES

• Checking
• Savings
• Certificate of Deposits
• Loans

10
HOW DOES A BANK MAKE

• You put in the bank.
• The bank pays you interest.
• The bank invests your to make more .
• The bank loans you .
• The bank charges you interest.

11
FDIC

• Federal Deposit Insurance Corporation
• Independent agency created by the government in
  1933
• Supervises banks
• Insures deposits up to 250,000
• Helps maintain a stable and sound banking system

12
SAVINGS ACCOUNT

• Emergency Fund - 1000
• Saving for Purchases
• Interest Rates
• Deposit
• Withdraw
• Transfer

13
CHECKING ACCOUNT

• Usually do not earn interest
• Uses checks instead of withdrawing and cash
• Dont have to carry cash

14
OPENING AN ACCOUNT

• Deposit
• Social Security or Card
• Formal Picture ID
• Contact Information
• Mothers Maiden Name
• Signature

15
YOUR ACCOUNT

• Fill out an application.

16
REGISTER

• To keep track of how much you have in your
  account
• Balance how much you have in your account
• Bounce a check that is written for an amount
  that is over the balance in the bank (illegal,
  fee, credit)
• Deposit increases balance
• Withdrawal/Checks decreases balance
• Fees decreases balance

17
REGISTER
18
DEPOSIT SLIP

• Write your name and date
• Write currency and coin depositing
• List check numbers and amount
• Add cash and checks for subtotal
• Write amount of cash wanted back
• Subtract cash back from subtotal for Total (Net)
  deposit
• Sign if cash received back
• Record in register

19
DEPOSIT SLIP

• Identify the parts of the deposit slip.

20
CHECK

• Identify the parts of a check.

21
CHECK

• Write the date
• Write the name of the person/organization to whom
  the payment will be made
• Write the amount as a numeral
• Write the amount in words with cents expressed as
  a fraction
• Make a notation for its purpose
• Sign the check
• Record it in your register

22
YOUR ACCOUNT

• Each student gets 100.
• Deposit 75 in checking and keep 25 cash.
• Record in register.
• Draw a card.
• Must pay for Necessities (groceries, bills,
  gas, etc.)
• Your choice about Wants (cds, out to eat,
  etc.)
• Can keep wants for later