© Family Economics & Financial Education – Revised April 2008– Saving Unit – Managing Your CashFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at
the University of Arizona
Managing Your Cash
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© Family Economics & Financial Education – April 2008 – Saving Unit – Managing Your CashFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at
the University of Arizona
$ How do small amounts of money saved and invested easily grow into larger sums?? INTEREST!! Money invested earns
interest The profit made on money
invested.
Did You Know?
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© Family Economics & Financial Education – April 2008 – Saving Unit – Managing Your CashFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at
the University of Arizona
Cash Management$The daily routine of handling
money to take care of individual or family needs
Cash Management
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© Family Economics & Financial Education – April 2008 – Saving Unit – Managing Your CashFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at
the University of Arizona
Cash ManagementEffective cash management
includes having available money for:
$Living expenses$Emergencies$Savings$Investing
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© Family Economics & Financial Education – April 2008 – Saving Unit – Managing Your CashFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at
the University of Arizona
Cash Management ToolCash Management Tool$ A financial account used to assist
with daily cash management
• 1) Checking Account• 2) Savings Account• 3) Certificate of Deposit
Three types of cash management tools
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© Family Economics & Financial Education – April 2008 – Saving Unit – Managing Your CashFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at
the University of Arizona
$Use: Tool used to transfer funds deposited into an account to make a cash purchases, write checks, and make ATM withdrawals
$Interest: Most checking accounts do not pay interest
$Accessibility: Money can be withdrawn at any time
Checking Account
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© Family Economics & Financial Education – April 2008 – Saving Unit – Managing Your CashFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at
the University of Arizona
Savings Account$Use: Tool used to hold or store
money for emergencies or large purchases
$Interest: Does earn interest
$Accessibility: Money can withdrawn at any time
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© Family Economics & Financial Education – April 2008 – Saving Unit – Managing Your CashFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at
the University of Arizona
Certificate of Deposit (CD)
$Use: Tool used to invest money on a short-term basis. A CD has a set term (1-5 years)
$Interest: Does earn interest! But rates vary. The longer the length of the term, the higher the interest rate
$Accessibility: Restricted access to the funds, must keep money in CD for the full term or pay penalties ):
1.14.2.G1
© Family Economics & Financial Education – April 2008 – Saving Unit – Managing Your CashFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at
the University of Arizona
Cash Management ToolsTool Average Interest Earned
Checking Account Zero!
Savings Account .06%-1%
Certificate of Deposit 1.5%-3%, depending on the length of deposit
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© Family Economics & Financial Education – April 2008 – Saving Unit – Managing Your CashFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at
the University of Arizona
Liquidity How quickly and easily an asset can be
converted into cash Liquid assets are important for
emergencies when cash must be quickly accessed
Liquidity
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© Family Economics & Financial Education – April 2008 – Saving Unit – Managing Your CashFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at
the University of Arizona
Liquidity
Checking Account
Savings Account
Certificate of Deposit
Most Liquid
Least Liquid
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© Family Economics & Financial Education – April 2008 – Saving Unit – Managing Your CashFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at
the University of Arizona
Low RiskThese three cash management tools
are LOW RISK: Funds in these type of accounts are
insured by the Federal Deposit Insurance Corporation (up to $250,000)
However, they have lower interest rates which causes low earnings
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© Family Economics & Financial Education – April 2008 – Saving Unit – Managing Your CashFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at
the University of Arizona
Checking Account Tools $ Debit Card
Withdraw money from an Automated Teller Machine (ATM)
Plastic card that looks like a credit card Electronically connected to a bank
account Money is automatically taken from the
bank account when purchases are made Requires a PIN (personal identification
number)$Confirms the user is authorized to access
the account
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© Family Economics & Financial Education – April 2008 – Saving Unit – Managing Your CashFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at
the University of Arizona
Checking Account Tools$ Checks
Write checks to transfer large sums of money
Deposit checks when receiving large sums of money
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© Family Economics & Financial Education – April 2008 – Saving Unit – Managing Your CashFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at
the University of Arizona
Parts of a Check $ Personal Information
Account holder’s name and address$ Check Number
Numbers used to identify checks$ Date
The date the check is written$ Pay to the Order of
The name of the person or business to whom the check is being written
$ Amount of the Check in Numerals The amount of the check written numerically in the box
$ Amount of the Check in Words Start at the far left of the line, write the amount in words, followed
by ‘and’, and the amount of cents over 100; draw a line from the end of the words to the word ‘dollars’
$ Memo Space used to identify the reason for writing a check; optional
$ Signature The account holder’s signature agreeing to the transaction
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© Family Economics & Financial Education – April 2008 – Saving Unit – Managing Your CashFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at
the University of Arizona
Checking Account Tools $ Checks are a DYING BREED
Direct deposit Apps- ex. Venmo, Paypal, Square
$https://www.youtube.com/watch?v=mbHQx3-pRI0
$http://www.slate.com/articles/technology/future_tense/2013/08/venmo_review_the_wallet_app_is_light_years_ahead_of_paypal.html
Google Wallet
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© Family Economics & Financial Education – April 2008 – Saving Unit – Managing Your CashFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at
the University of Arizona
THINK$ What are the apparent pros and cons
of checking, savings, and CD accounts?