The Variety of Banking Services Banking and Financial Services Finance Lesson Plan
Performance Objective Students will understand the importance the characteristics of the many types of financial services. Specific Objectives  Students will understand personal banking services.  Students will understand commercial banking services. Terms  Retail banking‐ (also called personal banking) usually branch locations of a larger bank where customers can get a variety of bank services all in one place  Business banking‐ (also known as corporate or commercial banking) services provided by banks and other financial institutions that are suited for businesses purposes  Checking account‐ an account that allows the customer to withdraw money by using a check or a debit card  Savings account‐ a deposit account that allows the customer to deposit money and earn interest on the amount deposited  Debit card‐ a card tied to a checking account whereby a customer can get cash through an ATM or use at a retailer for a transaction  Overdraft‐ when an account does not have enough money to cover a payment with a check or debit card  Money market account‐ a deposit account usually requiring a higher minimum balance to also earn a higher interest rate with limited check‐writing or withdrawal privileges  Certificate of Deposit (CD)‐ a deposit that earns a fixed interest rate for a specified period of time  Unsecured loan‐ a loan with no collateral as security to guarantee the loan  Secured loan‐ a loan that does use collateral as security for a loan  Individual Retirement Account (IRA)‐ a retirement savings plan where money is invested before taxes and can be withdrawn beginning at age 59 ½; a Roth IRA is an after‐tax investment that can also be withdrawn beginning at age 59 ½  Wealth management‐ a coordination of financial services for wealthier clients  Trust services‐ services usually involving estate planning and administration of trust accounts  Risk‐ the potential for loss  Debt ratios‐ a measure used when considering a company’s commercial loan application; compares a company’s debt to its income and its assets Time When taught as written, this lesson should take approximately four to five class periods to complete. Preparation
Copyright © Texas Education Agency, 2013. All rights reserved. 1 TEKS Correlations This lesson, as published, correlates to the following TEKS. Any changes/alterations to the activities may result in the elimination of any or all of the TEKS listed. 130.163 (c) Knowledge and Skills (2) The student acquires knowledge of banking processes and services. The student is expected to: (A) describe the nature of banking processes; (B) describe the types of banking services; (C) discuss retail bank products and services; (D) explain business bank products and services; (F) discuss the nature of loan products; and (G) discuss trust services available to customers. (4) The student determines client needs and wants and responds through planned, personalized communication to influence purchase decision and enhance future business opportunities in banking services. The student is expected to: (A) describe the importance of selling in the banking industry; (B) demonstrate cross‐selling bank products and services; (D) explain the process of opening a new account; (E) conduct mock calls on small business clients; (F) interpret loan terms for a client; and (H) plan a sales campaign. Interdisciplinary Correlations: English‐English I  110.31(b)(1) understand new vocabulary and use it when reading and writing  110.32(b)(11) understand how to glean and use information in procedural texts and documents  110.31(b)(11)(B) analyze factual, quantitative, or technical data presented in multiple graphical sources Math‐Algebra I  111.32(b)(1)(E) interpret and make decisions, predictions, and critical judgments from functional relationships Social Studies‐World Geography  113.34(c)(20)(A) describe the impact of new technologies, new markets, and revised perceptions of resources Occupational Correlation (O*Net – www.onetonline.org/) Job Title: Sales Agents, Securities and Commodities O*Net Number: 41‐3031.01 Reported Job Titles: Investment Specialist, Investment Executive, Investment Consultant Tasks Copyright © Texas Education Agency, 2013. All rights reserved. 2 
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Interview clients to determine clients' assets, liabilities, cash flow, insurance coverage, tax status, or financial objectives. Record transactions accurately, and keep clients informed about transactions. Develop financial plans based on analysis of clients' financial status, and discuss financial options with clients. Soft Skills  Judgment and Decision‐Making  Problem‐Solving  Active Listening Accommodations for Learning Differences It is important that lessons accommodate the needs of every learner. These lessons may be modified to accommodate your students with learning differences by referring to the files found on the Special Populations page of this website. Preparation  Review and familiarize yourself with the terminology and website links.  Take a look at the lesson materials and PowerPoint presentation. References  Center for Financial Training. (2003). Banking and Financial Systems, Southwestern Publishing. Independence, KY: Cengage.  www.frbsf.org/education/curriculum/borrowers.pdf  www.fdic.gov/consumers/consumer/news/cnsum05/summer_05_bw.pdf  http://www.newyorkfed.org/education/addpub/Comic_Banks.pdf  http://www.in.gov/dfi/2583.htm Instructional Aids  Lesson Presentation  Instructor Computer/Projection Unit  Online Websites Introduction
The main purposes of this lesson are to help students understand the following concepts:  The purposes for different types of financial institutions  The purposes for the different products and services offered by financial institutions  The decision‐making process when selecting banking services Ask students if they know about any trends in banking today compared to in the past. Ask students if they can name at least three different banking products or services. Ask students what they would do with the money if they won a 25 million dollar lottery. Copyright © Texas Education Agency, 2013. All rights reserved. 3 Outline
I. II. III. Categories of Banking Services A. May vary from bank to bank, but these are common services offered B. Retail, also referred to as “personal” C. Corporate, business, or commercial D. Investment E. Wealth management Retail (Personal) Banking Services A. Checking B. Savings C. Lending D. Other services E. Banking service options Checking A. Free checking 1. Maintain a low or zero minimum balance 2. Usually student accounts B. Money market 1. Interest earned on an average balance 2. Limited withdrawal or checking privileges C. Express 1. For those who prefer online banking or ATMs 2. May be a fee to use the drive‐
through D. Lifeline‐available mainly for lower‐income customers E. Debit cards Locate a website that compares checking accounts and review some of the different types with students. Direct students to the following website: http://www.newyorkfed.org/edu
cation/addpub/Comic_Banks.pdf Have them go to the “Story of Banks” and take notes on the many banking services that are discussed in the comic strip. Ask students to provide you with names of several area banks. Check some of these sites with students and show them how to locate the types of services for the various banks. Explain the terminology to look for on the sites and how it applies to them. Multiple Intelligences Guide
Existentialist Interpersonal Logical/ Kinesthetic/ Mathematical Naturalist Intrapersonal Bodily Musical/Rhythmic Copyright © Texas Education Agency, 2013. All rights reserved. 4 Verbal/Linguistic Visual/Spatial IV. V. VI. F. G. Fees 1. Overdraft 2. Monthly maintenance Check ordering Savings (Deposit) Accounts A. Basic 1. Low interest rate 2. Low, if any, minimum balance B. Money market 1. Higher interest rate 2. Higher required balance 3. Limited withdrawal privileges C. Certificates of Deposit (CDs) 1. Fixed interest rate, depends upon length of time specified 2. Penalty if funds withdrawn early Lending A. Mortgage loans 1. New loan 2. Home equity (for renovations) 3. Refinance B. Auto loans C. Student loans D. Unsecured vs. secured 1. Unsecured‐no collateral and higher interest rate 2. Secured‐collateral and lower interest rate Other Services A. Investments 1. IRAs 2. Stocks, bonds, mutual funds B. Wealth management 1. customers with assets
At the following website there is an activity with banking service terminology that students can do online (teacher can also print the activity). Click the “Financial Services” word search: http://federalreserveeducation.org/
resources/games/wordsearch/ In pairs, students can identify three banks within a close radius of your school and create a table that lists the services that may be appropriate for young adults and rewards or fees that may be charged. They should report their findings to the class and note any similarities and differences between the results. Have students go to several different banking websites again (either commercial banks or credit unions). Show them where to locate mortgage or auto loan rates. Many sites will also have calculators so students can calculate how much house payments or car payments will be based upon a specified interest rate. Provide students with a sample “Truth in Lending Disclosure” form at http://www.in.gov/dfi/2583.htm. Explain to students that when they take out a loan, they will receive this form (by law) that shows all costs. Multiple Intelligences Guide
Copyright © Texas Education Agency, 2013. All rights reserved. 5 VII. C. D. E. VIII. IX. (generally more than 1 million dollars) 2. Financial decisions either made by wealth manager or customer Insurance Credit cards 1. Compare rates 2. Reward programs Trust services 1. Estate planning 2. Trust account administration Banking Service Options A. Physical location B. Online‐24/7 access C. Mobile 1. Download app. 2. Photo (substitute) check feature D. ATM 1. Withdraw 2. Deposit 3. Balance Commercial Banking Services A. Raising capital B. Investing C. Risk management D. International E. Payroll Raising Capital A. Commercial loans B. Real estate C. SBA loans (Small Business
By this point students should be able to locate credit card rates on the various banking websites that were previously used. Ask for a volunteer to record the variety of rewards offered for the different cards on the board or document camera. For example, rewards might include miles, cash back, or product discounts. Since the students have examined features of personal banking, now have them look at commercial banking services. They will better understand services offered by reviewing actual websites. This will also make them more informed about the banking choices they will make in the future. Multiple Intelligences Guide
Existentialist Interpersonal Intrapersonal Kinesthetic/ Bodily Logical/ Mathematical Musical/Rhythmic Naturalist Copyright © Texas Education Agency, 2013. All rights reserved. 6 Verbal/Linguistic Visual/Spatial X. XI. D. Businesses need money on occasion and make loans just as individuals do. Businesses have to prove their credit‐worthiness also. The most common way is through analyzing debt ratios, which basically compare a company’s debt (how much it owes) to its assets (what it owns) and its income (sales). Businesses, as well as individuals, pay a premium, which is the amount paid to purchase insurance. One type of life insurance that is also considered an investment product is a whole‐
life policy. This policy builds cash value so as the value grows, it can also be borrowed at a later date. Have students search for this type of policy on the Internet and look at advantages and disadvantages of this type of policy. Administration Interim financing‐construction loans Investing A. Investing in securities 1. Managing corporate portfolios 2. Goal of maximizing profit B. Corporate retirement plans 1. Offering investment allocation options for a company’s employees 2. Managing funds Risk Management A. Types of risk: 1. Credit 2. Market (economy) 3. Investment 4. Liquidity 5. Fraud B. Insurance 1. Policies for employees 2. Life, accident, health 3. Warranties and extended service contracts XII. International A. Foreign currency exchange B. Trade services Multiple Intelligences Guide
Existentialist Interpersonal Intrapersonal Kinesthetic/ Bodily Logical/ Mathematical Musical/Rhythmic Naturalist Copyright © Texas Education Agency, 2013. All rights reserved. 7 Verbal/Linguistic Visual/Spatial Application
Guided Practice After reviewing different bank websites with the students, distribute a blank index card to each student. On the card, have them write which aspect of banking services is most important to them. For example, they could list overdraft protection for their debit card, no monthly fees, no minimum balance, or other characteristics. Then ask students to tape each card on the wall depending upon their responses; instruct students to group cards based on similar responses. Determine which feature is most desirable with the students. Teacher should go to the following website, www.frbsf.org/education/curriculum/borrowers.pdf (page 20) and print out the survey. Hand one to each student and have each student complete. Teacher should assimilate the results and create a graph to display for the class. Independent Practice  Students should go to a bank website and research student accounts and services. They should list the accounts (checking, savings, or credit card) and the features of each type of account.  Students can state a ‘pro’ and a ‘con’ for a particular bank service on an exit ticket at the end of class. Summary
Review Ask students the following questions on exit tickets or using a matching activity.  Question #1: What are three of many types of retail banking services? o Answer #1: Checking accounts, savings accounts, and loans  Question #2: What is attractive about money market accounts? o Answer #2: Money market accounts offer higher interest rates.  Question #3: What is a feature of a Certificate of Deposit (CD)? o Answer #3: You are guaranteed a specified interest rate if you leave your money in the CD for the required time period.  Question #4: What is a secured loan? o Answer #4: It is a loan that is backed by collateral (for example, a car or a home loan).  Question #5: Name two commercial banking services. o Answer #5: One is obtaining Small Business Administration loans and another is for construction loans. Evaluation
Informal Assessment Any and all of the following can be used as informal assessments:  Exit tickets with vocabulary  Pair‐share activities Copyright © Texas Education Agency, 2013. All rights reserved. 8  Class discussion and participation Formal Assessment  Banking Services Brochure Assignment #1‐ Students will create a brochure detailing at least six different types of services offered by financial institutions. They will also include a recommendation for each service regarding which type of customer and for what situations the services would be most appropriate.  Task Card Poster and QR Code Assignment #2‐ In pairs, students will select one of the Task Cards at the following website, www.frbsf.org/education/curriculum/borrowers.pdf and make a recommendation regarding what banking service or services would be most appropriate for that particular situation. Students are to also create a Quick Response (QR) code using any of the sites that allow you to create a free code that directs the audience to a specific financial institution that offers the service(s) chosen in the task. Students will present their poster to the class and have the audience members use their cell phones to view the QR code (if allowed by the teacher).  Banking Service Commercial Assignment #3‐ Students, in pairs, will create a 30‐second video advertisement, or commercial, using several of the different types of banking services they have learned about. The commercial should have a clear purpose and intended audience. Enrichment
Extension Students will visit a nearby financial institution and speak with a representative about the types of services that would be appropriate for them at their age and for the next five years. They should take notes and then create a typed document outlining the steps the representative recommended. The report should include time frames for different services and suggested dollar amounts. Copyright © Texas Education Agency, 2013. All rights reserved. 9 Banking Services Banking Services Brochure Assignment #1 Student Name ______________________ CATEGORY 20 15 Attractiveness & Organization The brochure has exceptionally attractive formatting and well‐organized information. The brochure has The brochure has The brochure's attractive well‐organized formatting and formatting and information. organization of well‐organized material are information. confusing to the reader. Writing ‐ Mechanics Capitalization and punctuation are correct throughout the brochure. There are one to two capitalization and/or punctuation errors in the brochure. There are two to three capitalization and/or punctuation errors in the brochure. There are several capitalization or punctuation errors in the brochure. Content ‐ Accuracy All facts in the brochure are accurate. 99‐90% of the facts in the brochure are accurate. 89‐80% of the facts in the brochure are accurate. Fewer than 80% of the facts in the brochure are accurate. Graphics/Pictures Graphics go well with the text and there is a good mix of text and graphics. Graphics go well with the text, but there are so many that they distract from the text. Graphics go well with the text, but there are too few and the brochure seems "text‐
heavy." Graphics do not go with the accompanying text or appear to be randomly chosen. Writing ‐ Organization 8 Each section in the Almost all sections Most sections of brochure has a of the brochure the brochure have clear beginning, have a clear a clear beginning, middle, and end. beginning, middle, middle, and end. and end. Maximum Points Possible: 100 Student Points: _________ Copyright © Texas Education Agency, 2013. All rights reserved. 10 1 Less than half of the sections of the brochure have a clear beginning, middle, and end. Banking Services Task Card Poster and QR Code Assignment # 2 Student Name ______________________ CATEGORY 20 15 8 Required Elements The poster includes all required elements as well as additional information. All required elements are included on the poster. All but one of the Several required required elements elements were are included on missing. the poster. Attractiveness The poster is exceptionally attractive in terms of design, layout, and neatness. The poster is attractive in terms of design, layout, and neatness. The poster is acceptably attractive though it may be a bit messy. Mechanics Capitalization and There is one error There are two punctuation are in capitalization or errors in correct punctuation. capitalization or throughout the punctuation. poster. Knowledge Gained Student can accurately answer all questions related to facts in the poster and processes used to create the poster. QR Code Student can accurately answer most questions related to facts in the poster and processes used to create the poster. QR code is QR code is directed to an directed to a appropriate website that is website and adequate. contains additional information. Student can accurately answer about 75% of questions related to facts in the poster and processes used to create the poster. The poster is distractingly messy or very poorly designed. It is not attractive. There are more than two errors in capitalization or punctuation. Student appears to have insufficient knowledge about the facts or processes used in the poster. QR code is QR code is missing directed to an from the poster. incorrect website. 1 Maximum Points Possible: 100 Student Points: _________ Copyright © Texas Education Agency, 2013. All rights reserved. 11 Banking Services Banking Service Commercial Assignment #3 Student Name ______________________ CATEGORY 25 12 1 Teamwork Students meet and discuss regularly. All students contribute to the discussion and all are listened to respectfully. All team members contribute a fair share of the work. Students meet and discuss regularly. Most students contribute to the discussion and are listened to respectfully. All team members contribute a fair share of the work. A couple of team meetings are held. Most students contribute to the discussion and are listened to respectfully. All team members contribute a fair share of the work. Meetings are not held AND/OR some team members do not contribute a fair share of the work. Concept Pair has a clear picture Pair has a fairly of what they are trying clear picture of to achieve. Members what they are can describe what they trying to achieve. are trying to do and Each member can generally how his/her describe what they work will contribute to are trying to do the final product. overall but has trouble describing how his/her work will contribute to the final product. Pair has brainstormed their concept, but no clear focus has emerged for the team. Pair members may describe the goals/final product differently. Pair has spent little effort on brainstorming and refining a concept. Pair members are unclear on the goals and how their contributions will help them reach the goal. Script Script is complete and it is clear what each actor will say and do. Entries, exits, and important movements are scripted. Script is quite professional. Script has a few There is no script. major flaws. It is Actors are expected to not always clear invent what they say what the actors are and do as they go to say and do. along. Script shows an attempt at planning but seems incomplete. Equipment All necessary Preparation equipment/supplies are located and scheduled well in advance. 18 Script is mostly complete. It is clear what each actor will say and do. Script shows planning. All necessary On the day of the Needed equipment/supplies shoot, all necessary supplies/equipment are located and equipment/supplies are missing OR were scheduled a few are located and not checked before days in advance. checked to ensure the shoot. they are operational. Maximum Points: 100 Student Points: _______ Copyright © Texas Education Agency, 2013. All rights reserved. 12