where should i put my money? types of accounts checking? savings? under the mattress?
TRANSCRIPT
Where should i put my money?Types of Accounts
Checking?
Savings?
Under the mattress?
Banking vocabulary balance - the current amount in your account ($$$) bounce: a check is written for more money than is in the account check - a piece of paper (usually) that orders payment of money check register - where you record all account transactions checking account - a place where you can deposit and withdraw
money credit - money that goes into your account debit - money that comes out of your account deposit - money put into your account depository institution – financial institution that accepts deposits
from consumers endorse - sign your name on the back of a check
Source: PDESAS.org, Wikipedia
Banking Vocabulary memo line - record what the check was written for mutual fund - investment portfolio shared with othersoutstanding - transaction not appearing on your bank statement overdraft - when you write a check with too little money in the
bank reconcile - you and the bank agree on how much money is in
your account routing number - identifies the bank where you have your
account signature card - form you need to fill out at the bank to open an
accountwithdrawal - money taken out of your account
Sources: PDESAS.org, Wikipedia
Types of Deposit Accounts: Regular Accounts
0Single – one account holder0 Joint – more than one account holder0Checking accounts0Personal0 Student / youth account 0Business
0Passbook savings 0Statement savings0Christmas / Vacation Clubs
More information at moneymatters
Types of Accounts: CD’sCertificates of Deposit (CDs)
0 Deposit a specific dollar amount for a specific period of time
0 Low risk investment0 Fixed interest rate0 Fees for early withdrawal (usually)0 More information at FDIC.gov0 How to calculate CD earnings (this is a bit advanced but
some of you might be interested)
Rate samples at PNC BankWhich account is right for you questionnaire
Money Market
0A type of checking account that pays a higher interest rate in exchange for limited access to the account. For example, you may only be able to write 4 checks per month
More info and video at Investopedia.
Mutual Funds
0 These funds allow you to pool your money with other investors in order to maximize return (the money your earn on your investment) and minimize risk through diversification (spreading your money over a large number of investments).
0 Every fund has a portfolio manager who buys and sell investments in order to make a profit for the mutual fund members.
0 Mutual fund portfolios often include a variety of stocks and bonds.
More information at CNN Money 101and Wikipedia
Types of Accounts: Accounts with Tax Savings
0College savings plan (529)0 Individual Retirement Account (IRA)
0 Generally long term investments but there are many types of accounts that can be opened as IRA’s
0 Tax incentives0 Roth IRA – after tax money0 Traditional IRA – before tax
money0 More information at
The Motley Fool0401(k) and 403(b) accounts
have money take directly from your paycheck
Types of Loans
0Personal loans0Car loans0Student loans at CollegeBoard.org
0Mortgages0 Primary mortgage (first loan on a house)0 Second mortgage (additional loan on a house)0 Home equity line of credit (based on equity in house)0 Refinance (pay off mortgage and redo to save money or
pay for something expensive)0Business loans
Other Bank Services
0Debit cards0Credit cards0Telephone bill pay0Online banking0Online statements0 Investment advice
Today’s AssignmentRead through the Money Matters newsletter. ThenComplete the puzzle on the handout.