Glencoe Business and Personal Finance
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Chapter
Banking
14
What types of financial services might help
you to better manage your cash flows?
Glencoe Business and Personal Finance
Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter
Banking
14
Understanding the services provided by financial institutions will
help you choose the best options to manage your money wisely.
Glencoe Business and Personal Finance
Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter
Banking
14
direct deposit
automated teller machine
(ATM)
debit card
commercial bank
savings and loan
association (S&L)
credit union
certificate of deposit (CD)
money market account
Glencoe Business and Personal Finance
rate of return
compounding
annual percentage yield
(APY)
overdraft protection
stop-payment
endorsement
bank reconciliation
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Chapter
Banking
14
Glencoe Business and Personal Finance
Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter
14
Banking
Section 1 Financial Services and Institutions
Identify types of financial services.
Describe the various types of financial institutions.
Describe problematic financial businesses.
Glencoe Business and Personal Finance
Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter
14
Banking
Section 1 Financial Services and Institutions
How to Manage Your Cash
Glencoe Business and Personal Finance
Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter
14
Banking
Section 1 Financial Services and Institutions
Types of Financial Services
Payment
Services
Savings
Categories
of Financial
Services
Other
Financial
Institutions
Glencoe Business and Personal Finance
Borrowing
Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter
14
Banking
Section 1 Financial Services and Institutions
Electronic Banking Services
Automatic
Payments
With authorization, funds are withdrawn from your account
Make sure there are sufficient funds in your account
Check your bank statement to make sure the transfer is correct
Glencoe Business and Personal Finance
Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter
14
Banking
Section 1 Financial Services and Institutions
Electronic Banking Services
Plastic Payments
Electronic payments
Online payments
Stored-value cards
Smart cards
Glencoe Business and Personal Finance
Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter
14
Banking
Section 1 Financial Services and Institutions
Evaluating Financial Services
Questions to Ask
Is a higher interest rate
on a certificate of
deposit worth giving up
liquidity?
Glencoe Business and Personal Finance
Would you trade the
convenience of getting
cash from the ATM near
your office for lower ATM
fees?
Is it worth opening a
checking account that
has no fees—but does
not earn interest, if you
must keep a minimum
balance?
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Chapter
14
Banking
Section 1 Financial Services and Institutions
Types of Financial Institutions
Non-Depository Institutions
Life Insurance Companies
Investment Companies
Finance Companies
Glencoe Business and Personal Finance
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Chapter
14
Banking
Section 1 Financial Services and Institutions
Problematic Financial Businesses
Be Careful of These Financial Businesses
Pawn
Shops
Payday
Loans
Check
Cashing
Outlets
Glencoe Business and Personal Finance
Rent-toOwn
Centers
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Chapter
14
Banking
Section 1 Financial Services and Institutions
Comparing Financial Institutions
Where can you get the highest rate of interest on your savings?
Where can you obtain a checking account with low (or no) fees?
Will you be able to borrow money from the institution—with a credit card
or another type of loan—when you need it?
Do you need an institution that offers free financial advice?
Is the institution FDIC- or SAIF-insured?
Does the institution have convenient locations?
Does it have online banking services?
Does it have any special banking services that you might need?
Glencoe Business and Personal Finance
Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter
14
Banking
Section 1 Financial Services and Institutions
Comparing Financial Institutions
Glencoe Business and Personal Finance
Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter
14
Banking
Section 1 Financial Services and Institutions
Analyze why it might be worth a person’s time to open a
checking or savings account at a bank rather than using a
check-cashing outlet.
Answers may vary but the students should realize that
many banks offer free checking or savings accounts
meaning you can cash a check for free.
Glencoe Business and Personal Finance
Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter
14
Banking
Section 2 Savings Plans and Payment Methods
Compare the costs and benefits of different savings plans.
Explain features of different savings plans.
Compare the costs and benefits of different types of checking
accounts.
Use a checking account effectively.
Glencoe Business and Personal Finance
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Chapter
14
Banking
Section 2 Savings Plans and Payment Methods
Types of Savings Plans
Glencoe Business and Personal Finance
Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter
14
Banking
Section 2 Savings Plans and Payment Methods
Types of Savings Plans
You can purchase Series EE Savings Bonds
from the federal government.
Glencoe Business and Personal Finance
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Chapter
14
Banking
Section 2 Savings Plans and Payment Methods
Types of Checking Accounts
Checking Accounts
Regular
Checking
Accounts
Glencoe Business and Personal Finance
Activity
Accounts
InterestEarning
Accounts
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Chapter
14
Banking
Section 2 Savings Plans and Payment Methods
Using a Checking Account
Check Register
Glencoe Business and Personal Finance
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Chapter
14
Banking
Section 2 Savings Plans and Payment Methods
Using a Checking Account
Glencoe Business and Personal Finance
Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter
14
Banking
Section 2 Savings Plans and Payment Methods
Using a Checking Account
Information on Your Bank Statement
Deposits
Checks You Have Written
ATM Withdrawals
Debit Withdrawals
Interest Earned and Fees
Glencoe Business and Personal Finance
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Chapter
14
Banking
Section 2 Savings Plans and Payment Methods
Using a Checking Account
Other Payment Methods
Certified Check
Cashier’s Check
Money Order
Organizations
Travelers Check
Prepaid Travelers Cards
Glencoe Business and Personal Finance
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Chapter
14
Banking
Section 2 Savings Plans and Payment Methods
Financial Institutions and Your Money
Banks make money by making loans.
The amount of money a bank can lend is
affected by the reserve requirement set by the
Federal Reserve.
Glencoe Business and Personal Finance
Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter
14
Banking
Section 2 Savings Plans and Payment Methods
Consider whether you would prefer to have a separate checking
and savings account, or an interest-earning checking account.
Explain your decision.
Sample answer: separate accounts, to avoid a minimum
balance or for higher interest rates.
Glencoe Business and Personal Finance
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Chapter
Banking
14
The Federal Reserve System
The Fed has the
responsibility of
monitoring the
economy.
Glencoe Business and Personal Finance
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Chapter
Banking
14
Glencoe Business and Personal Finance
Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter
Banking
14
Glencoe Business and Personal Finance
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Glencoe Business and Personal Finance
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