© 2003 south-western publishingchapter 23slide 1 chapter 23 banking and credit 23.1financial...
TRANSCRIPT
© 2003 SOUTH-WESTERN PUBLISHING CHAPTER 23 Slide 1
CHAPTER 23
BANKING AND CREDIT
23.1 Financial Institutions 23.2 Checking Accounts 23.3 Credit and Its Use
LESSONS
© 2003 SOUTH-WESTERN PUBLISHING CHAPTER 23 Slide 2
LESSON 23.1
FINANCIAL INSTITUTIONS
Name and describe the four major types of financial institutions
Discuss how electronic banking may change money management
OBJECTIVES
© 2003 SOUTH-WESTERN PUBLISHING CHAPTER 23 Slide 3
TYPES OF INSTITUTIONSAND SERVICES
Commercial banks Mutual savings banks Savings and loan associations Credit unions
Lesson
23.1
© 2003 SOUTH-WESTERN PUBLISHING CHAPTER 23 Slide 4
ELECTRONIC BANKING
Automated teller machines (ATMs) Telephone banking systems Computer banking systems Direct deposit or withdrawals Point-of-sale transfers
Lesson
23.1
© 2003 SOUTH-WESTERN PUBLISHING CHAPTER 23 Slide 5
DEBIT CARD
A debit card is a plastic card used to immediately transfer funds for a purchase from a bank account to a seller.
Lesson
23.1
© 2003 SOUTH-WESTERN PUBLISHING CHAPTER 23 Slide 6
LESSON 23.2
CHECKING ACCOUNTS
Describe types of checking accounts and how to open an account
Illustrate how to write and endorse a check, maintain a check register, make a deposit, and reconcile a bank statement
OBJECTIVES
© 2003 SOUTH-WESTERN PUBLISHING CHAPTER 23 Slide 7
UNDERSTANDINGCHECKING ACCOUNTS
Checks provide a safe and convenient way to pay bills.
Checks can be used as freely as cash. Using checks makes it easier to keep
good financial records.
Lesson
23.2
© 2003 SOUTH-WESTERN PUBLISHING CHAPTER 23 Slide 8
TYPES OF CHECKING ACCOUNTS
Regular checking account Special checking account Negotiable order of withdrawal (NOW)
account Share draft account
Lesson
23.2
© 2003 SOUTH-WESTERN PUBLISHING CHAPTER 23 Slide 9
OPENING A CHECKING ACCOUNT
Signature card Initial deposit
Lesson
23.2
© 2003 SOUTH-WESTERN PUBLISHING CHAPTER 23 Slide 10
WRITING A CHECK
Date Payee Numerical amount Written amount Purpose or account number Signature
Lesson
23.2
© 2003 SOUTH-WESTERN PUBLISHING CHAPTER 23 Slide 11
KEEPING A CHECK REGISTER
A check register is used to record checks written, deposits made, and other transactions.
Lesson
23.2
© 2003 SOUTH-WESTERN PUBLISHING CHAPTER 23 Slide 12
ENDORSING A CHECK
An endorsement is your signature, sometimes with a brief message, on the back/left side of a check. Blank endorsement Restrictive endorsement Full endorsement
Lesson
23.2
© 2003 SOUTH-WESTERN PUBLISHING CHAPTER 23 Slide 13
MAKING A DEPOSIT
The process of putting money into a checking account is known as making a deposit.
Lesson
23.2
© 2003 SOUTH-WESTERN PUBLISHING CHAPTER 23 Slide 14
MONTHLY STATEMENT
The amount of each check and the date the bank received it
The deposits you made Any service charges Any interest earned Beginning and ending balances
Lesson
23.2
© 2003 SOUTH-WESTERN PUBLISHING CHAPTER 23 Slide 15
BALANCING A CHECKBOOK
Comparing the bank statement with your check register is known as balancing (or reconciling) a checkbook.
Balancing a checkbook ensures that both you and your bank have recorded all the activity on your account correctly.
Instructions on how to balance your account are usually printed on the back of the statement.Lesson
23.2
© 2003 SOUTH-WESTERN PUBLISHING CHAPTER 23 Slide 16
LESSON 23.3
CREDIT AND ITS USE
Name and describe the two basic types of credit
Calculate the cost of credit
OBJECTIVES
© 2003 SOUTH-WESTERN PUBLISHING CHAPTER 23 Slide 17
CREDIT
Credit refers to the receipt of money, goods, or services in exchange for a promise to pay.
Lesson
23.2
© 2003 SOUTH-WESTERN PUBLISHING CHAPTER 23 Slide 18
TYPES OF CREDIT
Loan credit Sales credit
Lesson
23.2
© 2003 SOUTH-WESTERN PUBLISHING CHAPTER 23 Slide 19
THE COST OF CREDIT
The finance charge is the total dollar amount you pay for using credit.
The annual percentage rate (APR) is the percentage cost of credit on a yearly basis.
Lesson
23.2
© 2003 SOUTH-WESTERN PUBLISHING CHAPTER 23 Slide 20
WORKINGCareer Success for the 21st Centuryby Larry J. Bailey
Click on the title below to view the presentation for the next chapter.CHAPTER 24
BUDGETING, SAVING,AND INVESTING MONEY