Banking & Finance Course Deck

Financial Literacy

I CAN. I WILL. I MUST.

I CAN.

• I CAN. Define the term financial institution.
• I CAN. Compare and Contrast the types of financial institutions and their major functions, services, and roles with the US Banking System.
• I CAN. Explain the impact financial institutions have on the economy and individual communities.

What is a Financial Institution?

A financial institution is an establishment that conducts financial transactions such as investments, loans and deposits.

Financial Institutions

Types of Financial Institutions

• Commercial Banks
• Credit Unions
• Savings & Loans
• Insurance Companies
• Money Center Banks

I CAN. I WILL. I MUST.

I CAN.

• I CAN. Explain the origins and purpose of banking.
• I CAN. Explore the history and influences of US Banking Systems.
• I CAN. Develop a timeline of major milestones in US Banking History.
• I CAN. Prepare a presentation on one milestone event to illustrate its impact on banking.

Flashback Friday

History of Banking

MONEY

WHAT IS MONEY AND WHY DOES IT HAVE VALUE?

Music Monday

What is Money?

Money is a medium of exchange for goods or services within an economy.

Why does money have value?

Other people will accept it to pay for Goods and Services.

I CAN. I WILL. I MUST.

At the end of today's lesson you will be able to say.

• I CAN. Identify the characteristics and functions of money
• I CAN. Explain how the money supply is created.
• I CAN. Describe how money is created, valued, and exchanged.
• I CAN. Explain the fractional reserve system.
• I CAN. Explain how banks make money.

Functions of Money

What does Money do?

Medium of Exchange

Store of Value

Unit of Account

Characteristics of Money

• Divisible
• Portable
• Acceptable
• Scarce
• Durable
• Stable

The Fed

No. Not them.

The Federal Reserve

What is the Federal Reserve?

The Federal Reserve is the Central Bank of the United States.

Big Bank Take Little Bank

The Money Team

The Money Supply

The total amount of money in the economy at any time.

Calculating the Money Supply

M1

M2

Cash

+ Funds and accounts on which demand withdrawals can be made

+ Travelers Checks

Everything in M1

+ Savings Accounts

+ CDs (Certificates of Deposit)

+ Money Market Mutual Funds

How is Money Created?

Fractional Reserve System: When a bank keeps only a Fraction of their money in reserve.

How do Banks make money?

• Simply: Lending at a Higher rate than they give.
• Bank Fees
• Investments

I CAN. I WILL. I MUST.

• I CAN. Explain why we need a Federal Reserve
• I CAN. List the Functions of the Federal Reserve
• I CAN. Describe the structure of the Federal Reserve
• I CAN. Identify the Reserve Banks and branches that serve communities in Tennessee and explain how members of the Board of Governors are selected.

Why?

"Sometimes, in order to understand why you need something, it helps to find out what it was like before that "something" was created."

What do they do?

The Federal Reserve has three primary functions:

• Monetary Policy
• Banking Supervision
• Financial Services

Stacking and Flipping it

The Federal Reserve Structure

kBCoins Introduction

Welcome to knowledgeBANK's 'Coins' program!

Coins is a resource for families to have conversations about money. The knowledgeBANK team believes that these conversations should begin early, therefore we provide the mechanism, the structure and resources for the entire family to be Fin-LIT!

In the next six lessons, we'll cover six topics, which include:

• Creating spending plans,
• Human capital,
• Net worth,
• Credit and debt,
• Investing, and
• Protecting your assets.

The value of wealth and knowledge is that they give you options. Money provides better access to education, healthcare, career opportunity, increased social equity and safer communities

In the Coins program, our goal is to ensure you learn:

• To manage your money
• To increase your earning potential
• To measure your financial health
• Healthy perspectives on borrowing
• Healthy perspectives on investing

Let's get started!

Lesson 1: Creating spending plans

Guiding Questions

• How do we become thoughtful and responsible about how we manage our money?
• How will developing effective spending habits affect my financial future?

I CAN. I WILL. I MUST.

• I CAN. Differentiate between wants and needs
• I CAN. Create spending plans that align with personal goals
• I CAN. Prioritize saving as a priority and a need
• I CAN. Save by setting aside money for emergencies, future needs and goals

Lesson 2: Human Capital

Guiding Question

What are the factors that affect my earnings potential?

Human Capital

1. Human capital is our combination of skills, education, experience, talent, relationships and passion.

2. Human Capital determines our likelihood to get selected or hired over other applicants & it determines our ability to maximize our earnings potential.

3. Your career path should satisfy your personal interests, your personal goals and supports your desired lifestyle.

Who Gets Hired?

Communicating Your Value

It's not what you say, it's how you say it.

Craft human capital statements on a scratch sheet of paper in the following format:

I am...

I can...

I was awarded...

I was acknowledged...

I resolved...

Through x-experience I...

I created...

I improved x by..., etc

Don't Forget!

1. Human capital is our combination of skills, education, experience, talent, relationships and passion.

2. Human Capital determines our likelihood to get selected or hired over other applicants & it determines our ability to maximize our earnings potential.

3. Your career path should satisfy your personal interests, your personal goals and supports your desired lifestyle.

Lesson 3: Net Worth

Guiding Question

How do we measure our financial health?

I CAN. I WILL. I MUST.

• I CAN. Calculate the Net Worth Formula.
• I CAN. Differentiate between assets and liabilities.

Hip Hop Cash Kings

Who do you think were the worlds highest paid hip hop acts for the year 2018?

Net Worth

Net Worth = Total Assets - Total Liabilities

Assets: Things we own that have value.

Liabilities: Debts we have to repay.

Net Worth: The measure of our financial health.

Reflection

• What decisions are you making today that impact our net worth?
• Making it Real: What people in your life do you feel are an asset? What people do you feel are a liability?

Banking Regulations & Consumer Protection

Guiding Question: Who's in control of my money? Am I protected?

Mindful Mondays

Why do financial institutions need to be regulated?

Depository Institutions Deregulation and Monetary Control Act of 1980

Gramm-Leach-Bliley Act

Check Clearing for the 21st Century Act

Reserve Requirements

Consumer Protection

Week & a Day at a Glance

Presentation Schedule

Monday

Thursday

Tuesday

EXAM JAM!

Waffles & Review

• Wilcox & Burch
• Cohnes
• Green & Reid
• Lockhart

• Mather-Burks
• Mtambala & Bright
• Reyna-Villalpando & Martinez-Escobar
• Baldinger
• Bell

Financial Services and Products

What can Financial Institutions do for me?

I CAN. I WILL. I MUST.

At the end of this lesson you will be able to say:

• I CAN. Research Financial Services & Products available across the financial services industry
• I CAN. Compare and contrast the benefits and costs of common deposit accounts as well as other products and services, including investment tools.
• I CAN. Take a scenario and provide a argument supported by evidence about selecting selecting a specific financial account or service that will best meet the need of a prospective customer.

Products & Services

Business Banking—Most banks offer financial services for business owners who need to differentiate professional and personal finances. Different types of business banking services include:

• Business loans
• Checking accounts
• Savings accounts
• Debit and credit cards
• Merchant services (credit card processing, reconciliation and reporting, check collection)
• Cash management (payroll services, deposit services, etc.)

Individual Banking—Banks typically offer a variety of services to assist individuals in managing their finances, including:

• Checking accounts
• Savings accounts
• Debit & credit cards
• Insurance*
• Wealth management

Digital Banking—The ability to manage your finances online from your computer, tablet, or smartphone is becoming more and more important to consumers. Banks will typically offer digital banking services that include:

Online, mobile, and tablet banking

Mobile check deposit

Text alerts

eStatements

Online bill pay

Loans—Loans are a common banking service offered, and they come in all shapes and sizes. Some common types of loans that banks provide include:

Personal loans

Home equity loans

Home equity lines of credit

Home loans

Business loans

I CAN. I WILL. I MUST.

• I CAN. Prepare financial statements and determine efficient and confidential means of distributing statements, ranging from e-banking options to in-person transactions.

Financial Statements

What is a Financial Statement?

Written records that convey the business activities and the financial performance of a company.

Types of Financial Statements

• Income Statement
• Balance Sheet
• Statement of Cash Flows
• Statement of Changes in Equity

When your card decline....

What financial statement are you familiar with?

A Bank Statement

Distributing Statements

What are efficient and confidential means of distributing statements?

Account Reconciliation

Account reconciliation is the process of comparing transactions you have recorded using internal record-keeping for financial accounts against monthly statements from external sources, such as a bank, credit card company, or other financial institution, to ensure that your account records agree with each other.

CREDIT

What is Credit and Why is it Important?

What is Credit?

The ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future

Why do we need credit?

Where did it come from anyway?

Why? People want things they can’t pay for all at once and credit makes it possible to obtain them.

Where? Like most things in history there is no guarantee where the concept of credit started. Our history of banking shows merchants were some of the first people who granted grain loans to farmers.

Types of Credit?

Installment Loans

Revolving Loans

Installment Loans are a set amount of money loaned to you to use for a specific purpose.

• Student Loans
• Auto Loans
• Mortgage Loans

Revolving Credit is a line of credit you can keep using after paying it off. You can make purchases with it as long as the balance stays under the credit limit, which can change over time. Credit cards are the most common type of revolving credit.

Interest

Interest is a cost of borrowing money.

Lenders generally charge a certain percentage of the average daily balance of your account, which is called an interest rate. This interest rate is applied to your outstanding balance on a monthly basis

Fees

Many credit cards charge fees, but not all cards charge the same fees. Take care to fully understand what fees you are responsible for.

Credit Limit

Your credit limit is the maximum balance you can have on your credit card. It is determined by your lender, based on your credit history and income.

Reporting my Credit

Credit Report

Credit Score

A credit report is a detailed report of an individual's credit history prepared by a credit bureau.

A numeric value that represents your credit history.

FICO = Fair Issac Company

What impacts your score?

• Payment History
• Amounts Owed
• Credit History Length
• New Credit
• Types of Credit Used
• Inquiries

What is Good Credit? What is Bad Credit?

Having Good Credit is a Super Power

• Having Good Credit Determines your purchasing power
• Having Good Credit determines your negotiating power
• Employers may do a credit check
• Utilities Companies, Apartments, and Insurance companies may pull credit.

Student Loans and Credit

In School

Grace Period

Repayment

Subsidized and Unsubsidized loans are federal student loans for eligible students to help cover the cost of higher education

Unsubsidized Loans

Subsidized Loans

With a unsubsidized loan the borrower is responsible for interest while they are in school.

Direct Subsidized Loans are federal loans where the federal government will pay the interest while the student is in school

Traditional Loans

Non-Traditional Loans

Credit Reports

Log into Schoology and Open the File titled

Credit Application

Today we are going to role-play the part of a bank credit counselor in a scenario instructing a denied applicant ways to improve his or her credit score. In your assigned groups create a script that will last 3-5 minutes. One group member will act as a bank credit counselor and the other group member(s) will act as an applicant. You will choose 2 unique reason why the application was denied. As always these are first come first serve.

Group Selection

Group 1: Canesha Bright, Ryan Wilcox, & Ja'Mari Bell

Group 2: Trechelle Burch, Marcus Green, & Eric Reyna-Villalpando

Group 3: Beatrice Mtambala, Machi Lockhart, & Sebastian Baldinger

Group 4: Atsaria Cohnes & Oscar Martinez-Escobar

Group 5: Solomon Reid & Eric Mather Burks

Marketing

Text

Images

Symbols

Videos

I CAN. Identify Market Segments for Financial Institutions

I CAN. Differentiate between mass and targeted marketing

I CAN. Develop a Marketing Presentation targeted at teachers and students.

I CAN. Analyze the impact of competition among financial institutions in the local community

I CAN. I WILL. I MUST.

Change the Layout and Colors

Change the Layout and Colors

CONTACT DETAILS

How do people find you?

Course Description

Safety First

Get Ready! This Course is going to challenge you, but in order to be successful in the Business World you have to embrace the challenge. Let's Lock in and Stay Focused!

Fasten your Seatbelts!

The Father of BHM

Double click to edit

The Father

Dr. Carter G. Woodson

Show him some Love

February