Financial institutions include banks, credit unions, savings and loans, and non-bank institutions that offer services like checking and savings accounts. Over time, institutions have expanded their services and events like the Great Depression and recessions have shaped the banking system. It's important for consumers to access reliable financial information from trustworthy sources when making decisions.

1. EPF.12a compare types of financial institutions
EPF.12b examine how financial institutions affect personal financial planning
EPF.12h explain how certain historical events have influenced the banking
system and other financial institutions
EPF.10i access reliable financial info from a variety of sources

2. Financial institutions include credit unions, commercial banks, finance corporations,
savings and loan companies, insuring agencies, and non-bank institutions.

3.  Credit unions, banks, and savings and loan
companies generally offer checking accounts,
savings accounts, consumer loans, certificates of
deposit, and check cashing for depositors.
 Banks and savings and loan companies are
generally insured by the Federal Deposit
Insurance Corporation (FDIC) and credit unions
by the National Credit Union Share Insurance
Fund (NUSIF). Consumers should be aware that
not all deposits are insured.

4.  Payday loan and check-cashing companies
typically charge higher rates than banks for
their services.

5.  Some consumers do not have bank accounts
and use check-cashing services when they
must cash a check. Companies charge a very
high fee for this service.

6. Over time, financial institutions have expanded services that affect
personal financial planning.

7.  Many banks offer brokerage and insurance
services, as well as financial management
advisors.

8. A series of historical events led to today's banking system in the United
States.

10.  The Industrial Revolution brought an economic shift in
the United States from bartering and trading to
exchange of currency for goods and services;
individuals moved from being self-supporting to
working for others; increased use of money allowed
for purchases and the initiation of consumer credit, as
well as seasonal bank loans for farmers; the period
also saw high bank interest rates.
 1791 — First Bank of the United States established
 1816 — Second Bank of the United States established

11. Transition from an agricultural economy to an industrial economy
and an expansion of purchasing power and credit
 World War I — War debt incurred by United States
 Panic of 1907
 1913 — Federal Reserve System established
 1920s — Stronger credit
 1920–1980 — Credit made available to most Americans
 1929 — Stock Market Crash
 1930s — Great Depression; decade of consumer distrust of credit
and investment
 1940s–1960s — Stable inflation rates; low interest rates
 1970s — Rapid economic growth; overuse of credit; high inflation
rate; consumer credit protection legislation; birth of credit
counseling
 1990s — Credit as a major marketing tool across industries; major
stock market gains; longest peace time expansion

12.  September 11, 2001 — Terrorist attacks on
the World Trade Center, the Pentagon, and
Pennsylvania led to major stock market
losses. Threats of further terrorism continue
to influence the financial markets.
 The latter part of the first decade was marked
by a significant economic recession that
resulted in failed banks, foreclosures, and
high unemployment.

13. It is important for consumers to seek reliable financial info to assist them in making financial choices and
decisions.
Financial info is available from a variety of sources, not all of which are reliable.

14. Data may be gathered from print, electronic, and
verbal sources such as
 newspaper financial pages
 Internet sources
 investor services and newsletters
 financial magazines
 brokers
 banks
 credit unions
 financial advisors
 annual reports.

15. Financial data must be evaluated for reliability:
 Some information sources have an incentive to sell a
product.
 Statistical data can be misrepresented, for example,
to imply cause and effect.
 Some information sources are opinion programs, and
others are news programs.
 Some advisors are more skilled than others.
 Past performance is no guarantee of future
performance.
 It is the consumer’s responsibility to determine the
reliability of the information.