FINANCIAL MANAGEMENTFINANCIAL MANAGEMENT

What is money?

Bell ringer Bell ringer

• What is the purpose of a banking institution?

Federal Reserve SystemFederal Reserve System

Structure of the Federal Reserve• 12 Regional Bank districts

Why does our economic system Why does our economic system need a regulatory agency?need a regulatory agency?

Throughout the history of our country attempts have been made to develop a system that will provide for economic stability in times of recessions or depressions.

Types of InstitutionsTypes of Institutions

• Banks

• Finance Companies

• Credit Unions

What is the purpose of these What is the purpose of these financial institutions? financial institutions?

What type of financial institutions is What type of financial institutions is ….….

• Chase?

What type of financial institutions is What type of financial institutions is ….….

• First Busey Corporation?

What type of financial institutions is What type of financial institutions is ….….

• Community plus federal credit union

Money is anything that can be Money is anything that can be exchanged for goods, services and exchanged for goods, services and payment of debts.payment of debts.

Is this always what money looks like?

What form does money take?What form does money take?

• Currency• Checks• ATM• Debit Cards• Online Banking• Online Bill Pay

Three functions of MoneyThree functions of Money

• Medium of Exchange• Unit of Account

• Store Value

An An ““OwedOwed”” to MONEY! to MONEY!

• Using the form provided– Answer the questions about money

(any and all types).

– Create a poem about MONEY.

– Illustrate your poem.

Types of poems you can create Types of poems you can create

• Acrostic– The first letter of each line spells a word

• What does money mean to you?

• Security is something• All people long • For • Everyone needs money • To feel stable• You do too.

CinquainCinquain

• Line 1: Two syllablesLine2: Four syllablesLine 3: Six syllablesLine 4: Eight syllablesLine 5: Two syllables

• Money

• Multiple forms

• Cash, credit, debit cards

• Each form is used in many ways

• Moola

Free verseFree verse

• No rhyme or rhythm needed

• Choice is yours for how you break up the different lines

Money by Money by Gary R. HessGary R. Hess• Money is the thing that drives us• The more we have• The greedier we are• The less we have• The more we want• Money is power• If we have it• We can get what we want• If we have it• We only want more

Types of poems Types of poems

• Free Verse • Cinquain

– Line 1: Two syllablesLine2: Four syllablesLine 3: Six syllablesLine 4: Eight syllablesLine 5: Two syllable

• Acrostic– The first letter of each line spells a word

Financial InstitutionsFinancial Institutions

When opening an account at a financial institution what are some of

the things a consumer should consider?

CheckingChecking -- What it is! -- What it is!

• Checking & Banking Services• What is provides!

–A system for handling money–A record of spending–Relationship w/ a financial institution–Aide in establishing credit–Safety

What are some What are some services institutions offerservices institutions offer??

• Money Orders

• Cashiers Checks

• Certified Checks

• Travelers Checks

• Other Services

Special ChecksSpecial Checks

Account ElementsAccount Elements

• Demand Deposit Accounts

• Drawer• Drawee• Payee

Checking…The BasicsChecking…The Basics

• The Signature Card• Writing a check• Writing a deposit slip• Endorsements• Keeping a register

LetLet’’s practice…Writing a Checks practice…Writing a Check

LetLet’’s practice…Writing a Deposits practice…Writing a Deposit

Keeping a Running BalanceKeeping a Running Balance

Check#

Date Description Transaction Amount

Deposit Amount

Balance

Please complete the worksheet as a Please complete the worksheet as a groupgroup

What things can a bank statement What things can a bank statement tell you? tell you?

Bank Statements & Reconciliation'sBank Statements & Reconciliation's

• Bank Balance

• Posting

• Outstanding Deposits & Checks

Checking - ReconciliationChecking - Reconciliation

• Getting your checkbook to agree with the bank

• What will you need?

–Bank statement

–Cancelled checks

–Checkbook register

–Calculator

–Patience!

Reading a bank statementReading a bank statement

• Why would you check your bank statement?

Bank statements haveBank statements have

• Depositor’s beginning balance

• Individual & total deposits

• Individual & total checks

• Ending balance

Article review rotationArticle review rotation

Break into assigned groups

-Start at a table

-Read, discuss, and respond to questions in article. You do not have to write down each individual question. Just the title of the article and then answer the question in a full and complete sentence

-Example: I’m A Saver

1. I do agree with Damari’s idea of saving because it is better to be prepared for emergencies then have your immediate wants.