Name Class Period UNIT 2 FINANCIAL LITERACY NOTES. DEPOSITORY INSTITUTIONS A business which offers multiple services in banking and finance.

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Type of Insurance Coverage Insurance Protects Interest Interest Rate Checking Account Savings Account Money Market

1 Types UNIT 2 FINANCIAL LITERACY NOTES DEPOSITORY INSTITUTIONS A business which offers multiple services in banking and finance Advantages Disadvantages Services Offered COMMERCIAL BANK CREDIT UNION Used By? Type of Insurance Coverage Insurance Protects Interest Interest Rate Checking Account Savings Account Money Market Deposit Account Certificate of Deposit Credit List advantages of E-banking. List disadvantages of E-banking. List safety tips to remember when using a debit card.

2 CHECKING ACCOUNT TERMS Direct Deposit Direct Payment Overdraft Endorsement Outstanding Checks Reconciling an Account SAVINGS VIDEO NOTES 1. must become a priority. Always pay first. What does it mean to pay yourself first? 2. The United States has a savings rate. 3. Savings money is about and. 4. You should save money for three basic reasons. 5. are going to happen. Count on it! A beginner emergency fund, is in the bank. Why do teenagers need an emergency fund? How much money should a teenager put in an emergency fund? A fully funded emergency funds is months of expenses. 6. A great place to keep your emergency fund is in a account from a mutual fund company. Your emergency fund is not an, it is insurance. The emergency fund is your priority. Do it quickly!! 7. The second thing you save money for is. Instead of money to make a purchase, pay cash buy using a. 8. The third thing you save money for is. is a key ingredient when it comes to building wealth. Building wealth is a, not a sprint. 9. Pre- withdrawals are a good way to build in discipline because it make saving automatic.

3 10. is a mathematical explosion. You must start. Define Compound Interest. What do Ben and Arthur teach us about savings? 11. The Rate of Return, or rate is important when determining the future value of an investment. The higher the interest rate the larger the return. INVESTING VIDEO NOTES 1. What is the difference between saving & investing? 2. means to spread around. Diversification lowers. 3. With virtually all investments, as the goes up so does the potential return. 4. When discussing investments, is availability. (How quickly assets can be turned in to cash.) 5. As there is more liquidity, there is typically return. 6. A C.D. is a, typically at a bank. 7. Money market mutual funds are risk money market accounts with check writing privileges. These are great for. 8. Single stock investing carries an extremely degree of risk. When you buy stock, you are buying a small piece of in the company. Your return comes as the company increases in value or pays you, its owner, some of the profits-- otherwise known as. A bull market is when the market goes. A bear market is when the market goes. 9. A bond is a instrument by which the company owes money. Your return is the fluctuation in price and the rate paid. Few individual do well with purchases. 10. A mutual fund is when a group of investors pool their and invest it. Portfolio managers manage the pool or. Your comes as the of the fund is increased. Mutual funds are good term investments. 11. Real estate is the least consumer investment. You should have lots of before using real estate as an. 12. The worst type of investments are, & Futures, Day, and Viaticals. 13. What can the Rule of 72 Determine?

CREDIT Credit Installment Credit Cosigner Non-Installment Credit

Describe the Truth in Lending Act: List safety tips to remember when

4 CREDIT Credit Installment Credit Cosigner Non-Installment Credit Credit Limit List the advantages of using credit. List the disadvantages of using credit. How is creditworthiness determined? What is the Schumer box? Describe the Truth in Lending Act: List safety tips to remember when using credit cards: CREDIT REPORT What is a credit report? What is found on a credit report? How do you build a credit history?

5 List 3 ways to develop positive credit? List 3 ways to devleop negative credit? What financial decisions do credit scores impact? DEBT VIDEO NOTES 1. According to The Wall Street Journal, % of Americans are living paycheck to paycheck. 2. When it comes to debt, if you tell a lie or spread a long enough, eventually it becomes accepted as the. 3. Debt has been to us with such intensity for so long that to imagine living without it requires a complete shift, a completely new way of looking at things. DEBUNKING DEBT MYTHS 4. Myth: If I money to a friend or relative, I will be helping them. Truth: The relationship will be strained or. 5. Myth: By a loan, I am helping out a friend or relative. Truth: The bank requires a cosigner because the person isn t likely to. Be ready to pay the loan and have your credit damaged. 6. Myth:, rent-to-own, title pawning, and tote-the-note lots are needed for lower income people to help them get ahead. Truth: These are greedy rip-offs that aren t needed and benefit no one but the owners of these companies. 7. Myth: The and other forms of gambling will make me. Truth: The lottery is a on the poor and on people who can t do math. 8. Myth: payments are a way of life and you ll always have one. Truth: Staying away from car payments by driving reliable cars is what the typical does that is how they became millionaires. The average car payment today is $464 per month. 9. Myth: You can get a good deal on a car. Truth: A new car loses of its value in the first four years. This is the largest purchase most consumers make that goes down in value. 10. Myth: You need a to rent a car or make online. Truth: A card does all of that. 11. Myth: I pay my off every month with no payment or fee. I get points, air miles, and a free hat.

6 Truth: When you use cash instead of plastic, you spend less because spending cash hurts. 12. Myth: Debt is a. It should be used to create prosperity. Truth: The is slave to the lender. When surveyed, the Forbes 400 was asked, What is the most important key to building wealth? replied that becoming and staying free was the number one key to wealth building. RETIREMENT 401 K 403 B IRA INSURANCE Risk: Policy: Policyholder: Premium: Deductible: Liability insurance: Medical Payment insurance: Uninsured/Underinsured Motorist: Physical Damage Insurance: Collision: Comprehensive:

7 Health Insurance: Life Insurance: Beneficiary: Dependent: Disability Insurance: Homeowners Insurance does not cover. What does renters insurance cover? INVESTING WHAT IS THE RULE OF 72? WHAT IS THE FORMULA FOR THE RULE OF 72? WHAT IS COMPOUND INTEREST? BANKRUPTCY Define Bankruptcy: What debts will not disappear even if you file for bankruptcy? List three ways to prevent bankrupcty? How long will bankruptcy stay on your credit report? How will bankruptcy affect future credit/loans?

8 ESTATE PLANNING Define Will: What is the difference between a will and a trust? Define Trust:

Tell Your Story. Week 4 How would it feel to be 100% debt-free now and forever? date

Tell Your Story. Week 4 How would it feel to be 100% debt-free now and forever? date Tell Your Story Week 4 How would it feel to be 100% debt-free now and forever? date dumping debt breaking the chains of debt Debt is the most successfully, aggressively marketed product in history. What?