It’s really about understanding how much money you have, where it goes, and then planning how to best allocate those funds.
EOC study guidePersonal Finance #3
If they are Federal Deposit Insurance Corporation (FDIC) members
• Since the start of FDIC insurance on January 1, 1934, no depositor has lost a single cent of insured funds as a result of a failure
• Depositors are insured for up to $250,000
How does FDIC work?
EOC study guide
Personal Finance #8
FDIC Shuts Down Syringa Bank in Boise
•Commercial BankBank▫Provides transactional savings, money
market accounts▫Like all businesses, their goal is to
maximize corporate profits.
EOC study guide
Personal Finance #2
•Credit Union▫Financial institution that is not-for-profit and customers are members
EOC study guide
Personal Finance #2
Big banks ATMs are typically plentiful and branches are open on the weekend
Most offer a wealth of mobile and online tools
Credit unions Meant to serve local communities, often not available outside the area
Branded ATMs are practically nonexistent, most offer to reimburse customers for ATM fees if customers have to go out of network
Big banks Notorious for levying major fees against customers—from overdrafts to monthly maintenance fees According to MoneyRates.com the average monthly
maintenance fee is $12.26 Typical charge for out-of-network ATMs is $2.60
Credit unions Fewer fees across the board, for the most part
Overdraft fees are $20-$30, but usually only required to keep $30 in an account
70% offer free checking (39% of banks do) Many charge a $2-$5 maintenance fee
Big banks Interest-yielding bank accounts are rare now
Credit unions 70% do not pay interest on checking accounts those that do pay 0.17%
Big banks In 2012 they scored a 77 on the American Customer Satisfaction Index
Credit unions Scored an 82 on the American Customer Satisfaction Index in 2012
ARE YOU A GOOD RISK?
Financial institutions care about your character!!!
It matters what kind of "financial citizen" you have been
How do they know? By looking at your credit history
What is a credit score?
WHAT DO THEY CARE ABOUT MOST?
Factors that impact personal credit:
1. Payment history—have you paid your bills on time
2. Amounts owed—charge no more than 25% of your limit
3. Length of credit history—have you ben reliable for years?
3 important credit score factorsEOC study guide
Personal Finance #10
Principal—
a sum of money lent or invested on which interest is paid.
Interest—
money paid regularly at a particular rate for the use of money lentEOC study guide
Personal Finance #11