Banking

1. Banking

2. Objectives • Evaluate different banking institutions and the services that they offer • Compare and contrast various financial services products • Explain how compound interest is a key benefit of saving • Explain the impact of technology on banking • Identify the components of a bank statement • Demonstrate the ability to reconcile a bank statement

3. Key Vocabulary • Account Summary • ATM • Automatic Payment • Balance • Bank Statement • Certificate of Deposit • Checkbook • Checking Account • Check Register • Credit Debt • Direct Deposit • Electronic Banking • Individual Retirement Account • Money Market Account • Reconciliation

4. Key Vocabulary • Savings Account • Secured loan • Unsecured loan • Withdraw

5. To Bank or Not to Bank • You are about to hear testimonies from two individuals regarding their views of banks and banking services. • Based on what you know of banks and your experience with banks, you must decide which testimony most accurately represents your feelings regarding banks and their services. • Reactions should be in response to the statements as a whole and not on specific points within each testimony

6. To Bank or Not to Bank • “I think that everyone, as soon as they start earning money, should have their own bank account. I feel so independent being able to conveniently access my own money. I have a special checking and savings account that is geared for teens, which helps me to monitor and manage my money. It doesn’t cost anything to set up, and the bank automatically takes $25 from my checking account each month to help me reach my savings goal. I also have my own debit card, which is accepted almost everywhere! Bank accounts are great and easy to use. I was always nervous about keeping my money hidden under my mattress anyway.”

7. To Bank or Not to Bank • “I have never wanted to use any of the services provided by banks. I really don’t see the point in having someone else monitor your money. I love having access to my cash whenever I need it, and I feel good about keeping it hidden in my dresser drawer. Whenever I get my paycheck I just sign it over to my mom and she cashes it for me at her bank. It’s really no big deal. Some of my friends have their own checking and savings accounts, but I always feel good just knowing that I have a wad of cash in my pocket. Plus, I keep hearing stories in the news about banks failing and being bought by other banks… I don’t know, I just like being in control of my own money!”

8. To Bank or Not to Bank • Move to the “+” or “-” to the degree of how strongly you want to bank “+” or not to bank “-”

9. Choosing a Bank • Download: Reading- Choosing a Bank • Create the following table for notes in the reading

10. Choosing a Bank • Based upon what you have learned from the reading, what two products and/or services would be most important to you when deciding upon a bank? Explain your answer. • Attach to bottom of table and submit to classpress drop box

11. Banking Poster • Form groups of 2 • Download: Assignment- Banking Poster • Pay particular attention to the assessment criteria that are listed on the bottom half of the resource as these will be the exact criteria with which your posters will be assessed • Download- Example: Banking Poster

12. Banking Poster • In what ways does and doesn’t this example meet the assessment criteria for the assignment? • How would you improve the layout and organization of the poster?

13. Banking Poster • Understand the range and terms of common services and products that banks offer • Begin the research for their posters • Research, on their own, an institution that provides banking services and then come to me for approval

14. Banking Poster • Download: Graphic Organizer- Investigating Banking Services • Groups must complete this graphic organizer before beginning your posters • You will be required to investigate the savings account, payment, and loan services of their particular institution, • You will also get the opportunity to choose two other services that they would like to highlight on your posters. • For instance, you could choose to research investment and insurance products or mortgages and individual retirement accounts (IRAs) as two alternative services

15. Banking Poster • For example there may be 5-6 savings account types, highlight one or two tops

16. Banking Poster • Your job is to create an informational poster about the products and services of the specific bank that they researched • Along with following all of the required elements presented on the assignment sheet, make sure that the information is presented in an objective (and not persuasive) manner. • For example, do not write, “Bank of the West has the BEST free checking program for students” but rather, “Bank of the West offers a free checking program for students.”

17. Banking Poster • Your peers will be viewing the poster with the intent of making an informed decision as to which bank can best meet their own personal needs • Keep in mind that the financial institution that your group researched may or may not be the one that is the most appropriate for them

18. Banking Poster • Download: Worksheet- Reflection and Peer Review • Walk around and fill out the worksheet based on the posters

19. Which Bank is Right for You • Based on what you have learned from your peers’ posters, what financial institution and its services would best meet your needs? Explain your answer using specific examples and facts from the posters

20. Bank Statements • Regardless of which type of institution you choose, you will have access to a very important service offered by banks, the bank statement • Being able to read and understand the different components of a bank statement is important to effective money management

21. Bank Statements • Predict the type of information that would be included on a bank statement • Form groups with one note taker • Banks offer a variety of services to help individuals manage their money • Keeping track of an individual’s spending and earning transactions is just one of the many services that a bank statement provides

22. Bank Statements • One way to keep track of your spending and earning is to review and balance your monthly bank statement • Download: Example- Bank Statement • Identify the different parts of the bank statement

23. Bank Statements • Although banks try their best to keep extremely accurate records of every financial transaction, individuals, families, and businesses should not solely rely on the bank statement as their only record of spending and earning

24. Bank Statement vs. Check Register • Download: Worksheet- Check Register and Reconciliation Form • You must check the hypothetical account records against the bank’s account statement • You must understand the steps that they must take when reconciling their hypothetical account. • You should realize that the ending statement balance, plus outstanding deposits, minus outstanding checks will equal the new balance

25. Review • Think back to the two testimonies that you heard at the beginning of the section. In what ways have your views of banks and their services changed? • How will you apply the information that you have learned in this lesson to your own life?

26. Enrichment • Respond to the following article, http://www.washingtonpost.com/wp-dyn/content/article/2008/09/29/AR2008092903045.html. • Write a summary addressing whether you agree or disagree with the Capital Gains program. • Predict whether or not they think the program will increase a student’s motivation in school

27. Enrichment • In groups of 4 which I will assign, I want you to create a bank. • We have looked at the different products and services that several banks provide and this is your turn to try • Be sure to focus on specific products and services • Fees, interest rates, and deposit requirements. • Bank’s revenue, hours, etc

28. Enrichment • The class will then vote on the bank they think will perform the best based on revenue and services provided • Make sure you take notes, to compare at the end. • Be able to answer questions from the class and Mr. Retzbach

29. Cross-Curricular Integration • Social Studies: Have students design and create an informational brochure that focuses on the First Bank of the United States. Along with basic facts about the bank (founder, year established, location, cost to build, etc.), students should research its original purpose and its overall effect on the economy. Students should also include the services and products that the bank offered to its customers. Before students begin they should study current brochures from a local bank in their community.