Financial Services


Introduction | Depository Institutions | Managing a Checking Account | Earning Interest | Online Banking | Review


Introduction

Financial Services is a term used to refer to the services provided by the finance market. The financial services industry encompasses many types of businesses involved in managing money and plays a vital role in the world's economy. The industry as a whole is vast and includes companies engaged in activities such as investing, lending, insuring, securities trading and issuance, asset management, advising, accounting, and foreign exchange.

Flash Card Deck created by Shannon Anderson-Rush with GoConqr

Depository Institutions

Join Code: YHUFD

Assignment: Depository Institutions Nearpod

Directions: Complete the Nearpod lesson. You must join the lesson using the join code YHUFD. If you do not join and use your first and last name, you will not receive credit for this assignment. You must complete all exercises and quizzes contained within the lesson. Once you have completed the Nearpod lesson, reflect on 3 things that were contained in the lesson that will influence your financial decisions in the future. Your reflection should be at least 100 words.

Assignment: Saving without Depriving Discussion Board

saving moneyDirections: It is very important to save some money for a rainy day. Some savings come in handy when you need some cash for an emergency. We are encouraged to save from the moment we begin earning. It is one of the habits which shows financial responsibility. According to financial experts, we should save 30% of everything that we earn. While it sounds like a small fraction, it can actually be a big amount if you are earning little money in total. So how can you save money without straining when you have a small income? Post a thread to the discussion board with your ideas for saving money without feeling like you don't have any money to spend and then respond to at least two classmates to continue the discussion.


Managing a Checking Account

checkbook

Having a checking account at a bank or financial institution allows you to write checks to pay for goods and services, use a debit card to access your money, maintain a depository for your direct deposit paycheck or to get cash. Actually writing a check does not happen often anymore. "According to the Fed, debit cards and credit cards are by far consumers' favorite way to make payments. Some 43 percent of the consumers surveyed by the Fed said debit was their preferred method of payment. Another 22 percent preferred using credit cards. A solid 30 percent preferred cash. Checks? Only 3 percent of the people who took part in the Fed study preferred using checks." Patrick

There are still going to be circumstances when it is more financially responsible to write a check over using your debt or credit card. Certain parties will pass along debit/credit card fees, known as convenience fees to you. Paying your taxes is a good example. In Forsyth County, the Tax Commissioner office charges a 2.5% convenience fee for debit/credit card payments. If your property tax bill is $4000, then it would cost an extra $100 to use a debit or credit card as opposed to writing a check. If you owe income tax, the federal government will charge you $2.55 flat fee to pay with your debit card and 1.96% to pay using your credit card.

Assignment: Overdraft Fee Analysis

Directions: Many people make the mistake of thinking because they have checks or a debit card, then they have money. However, they fail to remember that once a check is written, it may be several days before it is cashed or when a purchase is made on a debit card, it take a little bit of time for the transaction to be reflected in your account. Don't make the mistake of spending money you do not have. An overdraft is when you accidentally spend more money than is in your account. Most financial institutions offer overdraft protection for an additional fee. This means if you overdraft on your account, you will be charged a fee but your check will go though. If you do not opt-in to be charged fees for overdraft protection, your transactions will get declined if you don't have enough money in your account and you will be charged an overdraft fee.

It can be a very costly lesson known as an overdraft fee. An overdraft fee charged when a withdrawal from an individual's bank account exceeds the available balance. The bank will institute such a fee to cover the cost of the transaction. Overdraft fees vary by financial institution and can be incurred for each transaction going over the available account balance.

Complete the Overdraft Fee Analysis assignment. Students will mathematically assess the overdraft fees associated with major banks' checking accounts and write a brief argument based on their analysis. Download the assignment instructions and then upload the completed document to itsLearning.


Endorsing a Check

check endorsement

When you receive a check from someone like your grandma, your bank will require you to endorse it before cashing it or depositing it. This is done by signing your name, in cursive (a really important reason to learn to write in cursive), on the back of the left end of the check. The endorsement gives your bank the legal right to process the check. There are several different types of check endorsements including a regular endorsement and a restrictive endorsement. Read the How to Endorse a Check wikiHow by Michael R. Lewis to learn more about bank endorsements including how to endorse a check.


Depositing Money

A deposit slip many be required when you deposit money into your checking or savings account. Many banks, like Wells Fargo, no longer require their customers to use deposit slips. Instead, many customers are using mobile banking or their debt card for accessing account information. Examine the interactive to learn how to complete a Deposit slip should it be required at your financial institution now or in the future. This interactive requires you to enable Flash and this interactive has sound (excuse the creepy voice).

If you have problems viewing this page as an embedded window, you can go directly to the lesson by clicking here -- Managing a Checking Account and then scrolling down to Deposit Slips.

deposit tips

Assignment: Maintaining a Checking Account

Directions: While a checking account can be a significant and simple component of your personal finances, that simplicity can also lead to your complacency. A checking account is a contractual relationship between you and your financial institution, with each party having specific responsibilities. The financial institution holds your money in a safe place and helps to facilitate your purchases. You are responsible for handling your account wisely by not writing checks for more money than you have in your account. Download the check register and the check register scenario. Upload the completed check register to the itsLearning assignment.


Earning Interest

Interest is money paid regularly at a particular rate for the use of money lent, or for delaying the repayment of a debt when you borrow money. But interest is also money that is paid to you when you have a savings account, certificate of deposit and sometimes even a checking account. Simple interest is based on the principal amount of a loan or deposit, while compound interest is based on the principal amount and the interest that accumulates on it in every period. Since simple interest is calculated only on the principal amount of a loan or deposit, it's easier to determine than compound interest. Money earns compound interest when the interest earned is added to the original deposit each time it is calculated. So in the case of a savings account, the interest is compounded, either daily (best) or monthly or quarterly, and you earn interest on the interest.

Compounding on Your Side

Join Code: TSGUX

Assignment: Compounding on Your Side Nearpod

Directions: Complete the Nearpod lesson. You must join the lesson using the join code TSGUX. If you do not join and use your first and last name, you will not receive credit for this assignment. You must complete all exercises and quizzes contained within the lesson. Once you have completed the Nearpod lesson, reflect on 3 things that were contained in the lesson that will influence your borrowing money decisions in the future. Your reflection should be at least 100 words.

Assignment: Simple vs. Compound Interest Exercise

Directions: Watch the Simple Vs. Compound Interest video. Then download and complete the Simple vs. Compound Interest Exercise. Upload the completed exercise to itsLearning.


Online Banking

Online banking, also known as internet banking, is an electronic payment system that enables customers of a bank or other financial institution to conduct a range of financial transactions through the financial institution's website.

82% of US consumers banked online more than once in the past 30 days, whereas 68% had used an ATM and 68% had visited a bank branch more than once during that same time period (Nielsen, 2014). As of April 2016, PayPal's traffic was 30 percent on mobile, and over a decade, PayPal has generated roughly $175 billion in mobile payments volume. Just five years ago, mobile accounted for only 1 percent of PayPal's payments volume. (paypal.com, 2016).

Online banking gives you the ability to manage money online with your mobile device or computer. There's no need to visit a bank branch, and you can do what you need to do when it's most convenient for you. They can be easier to use, they usually have higher interest rates, they're free or inexpensive, and they're better for tracking spending. Money is increasingly electronic. Some people still use cash, but other forms of payment have become more popular. Why? They can be easier to use, they're free or inexpensive, and they're better for tracking spending. Banks play a meaningful role in that evolution. Online banking used to be limited to banks that operated exclusively online. But now, even big brick-and-mortar banks and local credit unions offer online services. That said, you can still use an online-only bank. J. Pritchard (2019) "What is Online Banking?" the balance

Assignment: Online and Mobile Banking? Discussion

Directions: Watch the following three commercials regarding online and mobile banking at three different banks.

What common themes do you see between the three commercials? Compose your response and post to the What Are Online and Mobile Banking? discussion board. Respond to at least two classmates to continue the collaborative discussion.

Assignment: Online Banking Tools Analysis

Directions: Finishing reading "What is Online Banking?" by Justin Pritchard in the balance. Students will explore the ever-evolving line of online and mobile finance tools available to supplement their banking. Download the Online Banking Tools Assignment sheet. Follow the instructions and complete the assignment sheet. Upload the completed assignment sheet to itsLearning.


Review

Assignment: Financial Football

Directions: Complete the Financial Football. You will play as a single player, select the "All Pro" option and a 30-minute game. At the end of the simulation, make a screenshot of the final screen and then reflect on what you learned about financial services by playing some football.

Resources

If you are having problems viewing this page, opening videos, or accessing the URLs, the direct links are posted below. All assignments are submitted in itsLearning. If you have having problems, contact Mrs. Rush through the itsLearning email client.

What is Online Banking?: https://www.thebalance.com/what-is-an-online-bank-315204


Credits

Checkbook image: Copyright MMXIX Patrick's Place LLC.

Savings image: Great Performers Academy


Transcript of this lesson