glow foundation 2010
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Glow Foundation 2010. Glow Online Curriculum Session I. Introduction to Glow Online Sessions And The Benefits of Banks: Opening and Managing Savings and Checking Accounts. What We Will Cover in this Session. Information about Glow Foundation Benefits of Banking - PowerPoint PPT PresentationTRANSCRIPT
Introduction to Glow Online Sessions
AndThe Benefits of Banks: Opening and Managing Savings and Checking
AccountsGlow Foundation
2010
Glow Online Curriculum Session I
Page 2
What We Will Cover in this Session
Information about Glow Foundation
Benefits of Banking
Savings Accounts (Opening an Account, Interest,
Tips)
Checking Accounts (Parts of a Check, Filling out a
Check and Deposit Slip)
Using a Debit / ATM Card
Tracking Your Spending
Protect Yourself from Fraud!
Page 3
What is Glow Foundation?
Glow Foundation is a non-profit organization that helps high potential, college ready students overcome financial barriers to attend and graduate from college
We provide students with:
Page 4
How Can I Benefit from Participating?
Glow’s Goal is to Help You Understand How to FULLY FUND Your College Education.
By Participating in Online Program, You’ll Have a Stronger Understanding of:
Banking Services and Money Management Tools Interest, Credit, and Credit Cards The FAFSA and Financial Aid Process How to Evaluate Loan Options How to Analyze and Compare Financial Aid Award Letters Budgeting
Page 5
What Are the Benefits of a Bank?
THINK IT OVER:
1. Why would someone decide to open a bank account?
2. What are some benefits of a bank?
Page 6
Benefits of a Bank
DID YOU COME UP WITH SOME OF THESE?
1. Safety (of cash from theft, fire, etc.)
2. Convenience
3. Saves Money (avoids check cashing fees)
4. Security (FDIC insured)
5. Advice of Banking Professionals
Page 7
Savings Account Basics
What is a Savings Account?
Page 8
Savings Account BasicsRegular Savings Money Market Certificate of Deposit
(CDs)
Minimum Balance Usually a minimum balance of at least $1000
Deposit a certain amount of money – requires a minimum amount
Low Interest rates - variable
Usually pays more interest than regular savings (variable)
Higher interest rate than a regular savings account (usually fixed)
Limited number of withdrawals – sometimes charged a fee
Usually can make limited amount of withdrawals with checks - convenient
No withdrawals - will be penalized if you withdraw money before specified date
Readily accessible No minimum length of time to have money deposited
Requires money to be deposited for a certain amount of time
Insured Not always insured Insured
Page 9
Savings Account Basics
What should you consider before opening up a savings account?
How Frequently Interest is Compounded
Minimum Balance
Service Fees
Convenience
Interest Rate 1
2
3
4
5
Page 10
Savings Account Basics
What is Compound Interest? Also do a web search for definitions!
Quarter Amount in Account
Interest Total amount
1 $1000.00 1.25% ($1000*.0125) + 1000 = $1012.50
2 1012.50 1.25% (1012.50*.0125) + 1012.50 = 1025.16
3 1025.16 1.25% (1025.16*.0125) + 1025.16 = 1037.97
4 1037.97 1.25% (1037.97*.0125) + 1037.97 = 1050.94
Page 11
Saving Account Basics
Compare the Results:
Shoebox Saver(No Account)
Super Saver (Savings Account)
Year 1 $1825 $1871 ($46 more!)
Year 5 $9125 $10,366 (+$1,241)
Year 10 $18,250 $23,677 (+$5,427)
Year 30 $54,750 $127,077 (+$72,327)
Each person saved $5 a day and the Super Saver earned 5% interest compounded daily.
Page 12
Savings Account Basics
Some tips to SAVE MORE MONEY:
Ask yourself, “Do I NEED this?” Pay YOURSELF first before you spend any money If you get money as a gift or a bonus, save a portion
of it Save spare change and deposit it Pay bills on time Avoid check cashing stores Take lunch with you instead of eating out Carry small amounts of cash with you Use direct deposit Others?
Page 13
Checking Account Basics
Checking Accounts:
Keep your money safe and accessible Help control your spending Don’t pay interest May require you to keep a minimum
balance or do direct deposit (to avoid fees)
Checks function like cash
Page 14
Checking Account Basics
Check-Writing Tips:
Always write in blue or black ink Write neatly Save your receipts and record your spending in
your register Initial your (small) mistakes / VOID checks with
large mistakes Avoid writing “bad” checks - you will get fined
and it’s against the law in some cases
Page 15
Checking Account Basics
How to Endorse a Check: When depositing a
check, you need to approve the transaction by endorsing the
back of the check. Along with your signature, you’ll write
“For Deposit only” along with your bank account
Page 16
ATM / Debit Cards
What’s the difference between an ATM and debit
card?
Page 17
ATM / Debit Cards
ATM Cards are used to: Deposit, withdraw, or transfer money
Debit cards can do this in addition to: Purchasing items Online banking – pay your bills, check account
balances
Page 18
ATM / Debit Cards
What information is on your ATM / debit card?
Page 19
ATM / Debit Cards
ATM / Debit Card Tips:
You may be charged a fee if you use an ATM that is operated by another bank
Know your balance available Be aware of what you’re buying - it’s easier to
spend more with plastic! Be careful with your Personal Identification
Number (PIN) – Never write it on your card Avoid magnets – they can de-magnetize your card Contact your bank if your card is lost or stolen!
Page 20
Tracking Your Spending
Think about ways to track your spending and control the
money you have.
Page 21
To Track Your Spending
1. Save your receipts
2. Record transactions
3. Avoid over-spending
4. Review statements
5. Compare with the bank
Page 22
Tracking Your Spending
► Overdraft Fees! Whenever you spend more money
than you have in your account, banks will charge
you a fee which ranges from $15-$35 per overdraft. It
is better to balance your checkbook, purchase what
you can afford and manage your money effectively.
What happens when you write a check for more than you have
in your checking account?
Page 23
Protect Yourself From Fraud
Do some research:
What are ways to ensure that you are keeping credit cards,
checkbooks and financial data safe at home and online?
Page 24
Recap
Benefits of Banking
Savings Accounts (Opening an Account, Interest,
Tips)
Checking Accounts
Using a Debit / ATM Card
Tracking Your Spending
Protect Yourself from Fraud!
Page 25
Homework:
Save your receipts for one week
and have them ready for you next
online session