Steve Artis

Matthew Onstad

Tina Orellana

Kevin Rishko

Logix Federal Credit UnionSmarter Banking

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Agenda• Understanding Terms • Basic Checking• Saving Money• Credit & Loans “Buy now pay later”

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Terms• Checking Account – An account where the

focus is placed on using the money to pay for other things

• Savings Account - An account where the focus

is placed on saving money rather than taking it

out

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Terms• Credit Card - A credit card is a payment card

issued to a person for purchasing goods and services and obtaining cash against a line of credit established by the issuer

• Loan- A loan is a thing that is borrowed, esp. a sum of money that is expected to be paid back with interest

• Budget – A plan of how much you need to spend and save each month to reach your goals

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Checking Accounts• Convenient Access

• Checks, Debit Cards

• Electronic Services• Keep track of how much you deposit and how much you spend

– know how much you have in your account!

• Monthly Charges & Usage Fees• Overdraft Protection• Subtract service fees and usage charges

• Processing Policies• Checks as Records/Receipts

• Record transactions• Check bank statements for mistakes

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Writing Checks• What are the major parts of a check?

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Balancing your book• Each student starts with

$150• Every Friday, you

receive $50 for allowance

• You can choose to spend the money or save

• How much do you have at the end of 3 weeks?

• You cant borrow from your parents

• Week 1:– Starbucks-$10– Movies-$15– Lunch out daily-$30– Dinner at the game-$15

• Week 2:– Friend needs a B-day gift-$35– Lunch out daily-$30– Starbucks-$10– Concert time-$75– Extra Chores for +$30 but can’t go to the

movies• Week 3:

– Starbucks again-$10– Lunch out daily-$30– New Video game-$50– Its your B-day and you get $75– Going to the big game-$20– You break your phone-$300

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Savings Facts• The average American family has about $3800 in

savings• 40% of Americans not saving for retirement • Only 18% of American’s confident about having enough

saved for retirement

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Savings Accounts• Share Savings: reports transactions monthly

• Money Market: typically require minimum balance and offer higher interest rates

• Certificate Accounts: pay higher interest rates based upon agreement to leave a specific amount in the account for a set amount of time

• 401k retirement plans and IRAs: an opportunity to save with taxes being deferred. Can be through employer or on your own

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How saving adds up!• How Much to save in 6 months for that $500 I-

Pad?– A month _____?– A week _____?– A day _____?

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Long Term Savings• Rich Moore

– Saving $3,000 a year starting at 19– Stopped at age 26 (8 years)– At 60, has deposited $24,000 but actually has

$964,129

• Les Little – Saving $3,000 a year starting at 27– Stopped at 60 (34 years) – Has deposited $102,000 but only has $810,073

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The Rule of 72• How can you double your money?

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Savings Vs. Checking • Checking?

– *– *– *– *– *

• Savings?– * – *– *– *– *

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Budgeting • How much money do you have each week?• Balance vs. Available-pending withdrawals• Use your computer, smartphone, phone to check

balances before spending – Use text alerts

• Are you looking to save for something specific?– Car?– Play-Station?– College?

• Can you afford an emergency?• How much should you save?

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Credit• Credit allows individuals to use money they currently don’t have

– Allows for more manageable monthly payments on large purchases like homes and cars

• Good credit allows for lower interest rates so saves you money– On a $20,000 car loan, 1.95% means a payment of $350 and 7.99%

means a payment of $403 (or $3,180 more over 5 years)

• Be aware of the fees• Be aware of the interest

– Don’t make the minimum payment on credit cards• Balance $500, Min payment $15, interest rate 15%, will take 3.7

years to payoff and $151 in additional fees

• Credit is important not only for the purposes of lower fees and rates but for jobs and renting-Can start at age 18

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Links• Balance a checking account tools

– https://www.balancepro.net/checking/index.html

 • Checking account education

– http://www.balancetrack.org/checking/index.html

• Teens and Money– http://www.balancetrack.org/teensandmoney/index.ht

ml

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Questions?