Financial services insurance company project

1. • Activity 1…….Where Do I Keep My Money?
• Activity 2…….Evaluating Financial Services
• Activity 3…….Banks, Yesterday and Today

2. ACTIVITY 1
Where Do I Keep My Money?
Overview
• The functions of banks
• The cost of alternative financial services
• The stability of banks
Introduction to Financial Services - Activity 1
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3. 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
Slide 1 - Places to Save Money
Lesson Reference: Introduction to Financial Services, Activity 2 – Overhead 1
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4. 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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5. 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.
Slide 3 – FDIC
Lesson Reference: Introduction to Financial Services, Activity 1 – Overhead 2
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6. Overview
• Formal and informal financial services
• Costs of alternative financial services and
average bank accounts
• Advantages of establishing a banking relationship
ACTIVITY 2
Evaluating Financial Services
Introduction to Financial Services – Activity 2
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7. Slide 1 – Formal and Informal Financial Services
Lesson Reference: Introduction to Financial Services, Activity 2 – Overhead 1
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
FORMAL
FINANCIAL
SERVICES
• Accounts
• Credit cards
• Loans
• Investment vehicles
• Direct deposit
• Wire transfers/ remittances
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8. Slide 2 – How a Bank Can Save You Money
Lesson Reference: Introduction to Financial Services, Activity 2 – Handout 2
HOW A BANK CAN SAVE YOU MONEY
Monthly Fees without a Bank Monthly Fees with a Bank*
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• $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
• $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
Annual Savings by Using a Bank: $1,125.72

9. Slide 3 – Advantages of a Banking Relationship
Lesson Reference: Introduction to Financial Services, Activity 2 – Overhead 2
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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10. ACTIVITY 3
Banks, Yesterday
and Today
Overview
Introduction to Financial Services - Activity 3
• 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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11. TRADITIONAL
SERVICES
OF BANKS
• Checking Accounts
• Savings Accounts
• CDs (Certificates of
Deposit)
• Savings Bonds
• Loans
• Car
• Home
• Personal
• Safe Deposit Boxes Slide 1 - Traditional Services of Banks
Lesson Reference: Introduction to Financial Services, Activity 3 – Overhead 1
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12. EXPANDED
SERVICES
OF BANKS
• Insurance Sales
• Small Business Advising
and Loans
• Investments
• Credit Cards
• Remittances
Slide 2 - Expanded Services of Banks
Lesson Reference: Introduction to Financial Services, Activity 3 – Overhead 2
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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13. 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.
Slide 3 - Financial Services Modernization Act
Lesson Reference: Introduction to Financial Services, Activity 3 – Overhead 3
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14. 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.
Slide 4 - Some Community-Related Services
Lesson Reference: Introduction to Financial Services, Activity 3 – Overhead 4
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