BANKING & SAVINGS How to Keep your Money Safe and Growing Presented by αλέξ A part of Financial Literacy Research Program

Objectives banking Understand the functions of a financial institution Overview of banking services Building a positive relationship with banks In-depth looking into Checking accounts

Objectives SAVINGS Understand why it is important to save Determine goals towards which you want to save Savings options with bank Ways you can save money in Berea

Suppose you have a $100 graduation gift cash. What are you going to do with it? Spend it right away Make a plan to use it

How do you set goals ? Bingo! is a SMART CHOICE. Make a plan to use it

I need some money for the trip. I’ll save any that’s left over at the end of the month I will make the trip in 5 days. I’ll have the money by early December. I want to do something fun over the Christmas break. Setting goals What does it take? I need $200 for the cost of the trip. I want to spend Christmas break in FL with Cosmo Club. It’s October and I have about 8 weeks to save: $25/week Cosmo Club offers ride and support your 5-day meals. I will have 75% of the money saved by December 1st.

What does it really mean? Shop ‘till you drop first Put money in your savings first Courtesy of Fifth Third Bank © 2010 Pay Yourself First! Treat saving as your first expenditure as when you receive your paycheck. Act. 1 PAY YOURSELF FIRST

Compound Interest Money earned on “previously paid” interest in your bank account Rule of 72 How many years it will take for your investment to double Years = 72  interest rate (%) Act. 2 WATCH YOUR MONEY GROWING

Now with your $2,000 scholarship. How much is it likely to grow in 4 years when you put it :

Now with your $2,000 scholarship. How much is it likely to grow in 4 years when you put it :

DID YOU KNOW? With the new financial reform bill going to be law: Merchants can charge different prices for cash or credit Merchants can set minimum purchase requirements if you want to pay with plastics. Source: Alice Gomstyn, "Financial Reform: Four Credit Card Changes You'll Want to Understand," ABCNews.com, June 29th, 2010 Act. 3 MANAGE YOUR EXPENSES

Act. 4 ENJOY YOUR COLLEGE LIFE Quick Fact SO DOES YOUR “PIGGY BANK”

Questions & Answers

and take advantage of banking industry What you are going to do with $1,000? Start making money by answering 10 questions Each correct answer will earn you $100 Who will achieve his/her goal first?