tailieunhanh - Lecture Focus on personal finance: An active approach to help you develop successful financial skills (2e) - Chapter 4

Chapter 4 - Savings and payment services. In this chapter, you will learn to: Identify commonly used financial services, compare the types of financial institutions, assess various types of savings plans, evaluate different types of payment methods. | 4 Savings and Payment Services Meeting Daily Money Needs Routine spending activities require a cash management plan Payment options: cash, check, credit cards, and debit cards Common Mistakes: Overspending Insufficient liquid assets Using savings or borrowing to pay for current expenses Failing to put unneeded funds in an interest bearing or investment account 4- Objective 1 Identify Commonly Used Financial Services Meeting Daily Money Needs Sources of Quick Cash: Liquidate savings Savings account CD Mutual fund Borrow Credit card advance Personal loan Both options reduce net worth 4- Types of Financial Services Savings Time deposits Savings accounts and certificates of deposit Payment services Checking accounts = demand deposits Automatic payments Borrowing for the short- or long-term Other financial services Insurance, investments, real estate purchases, tax assistance, financial planning, and asset management (cash management) accounts 4- Electronic and Online Banking Services Direct deposit Paychecks and other regular income Automatic Payments and Fund Transfers Recurring payments such as for utilities Remember to deduct them from your check register ATM Access Obtain cash, check account balances, and transfer funds Check out the fees! (use own bank ATM; larger sums) Debit Card Deducts money directly and immediately out of your checking account (no “float” time) Lost card liability $50 (2 days) to $500 (up to 60 days); unlimited liability after 60 days Traditional banks most offer online services Web-only banks (., E*Trade Bank, ING Direct) Services Provided: 4- Pros and Cons of Online Banking Benefits Concerns Time and money savings Potential privacy and security violations Convenience for transactions, comparing rates ATM fees can become costly No paper trail for identity thieves Difficulty depositing cash, checks Transfer access for loans, investments Overspending due to easy access E-mail notices of due dates Online scams, “phishing,” . | 4 Savings and Payment Services Meeting Daily Money Needs Routine spending activities require a cash management plan Payment options: cash, check, credit cards, and debit cards Common Mistakes: Overspending Insufficient liquid assets Using savings or borrowing to pay for current expenses Failing to put unneeded funds in an interest bearing or investment account 4- Objective 1 Identify Commonly Used Financial Services Meeting Daily Money Needs Sources of Quick Cash: Liquidate savings Savings account CD Mutual fund Borrow Credit card advance Personal loan Both options reduce net worth 4- Types of Financial Services Savings Time deposits Savings accounts and certificates of deposit Payment services Checking accounts = demand deposits Automatic payments Borrowing for the short- or long-term Other financial services Insurance, investments, real estate purchases, tax assistance, financial planning, and asset management (cash management) accounts 4- Electronic and Online Banking .