Investing and Banking FONTBONNE UNIVERSITY FINANCIAL LITERACY AND DEFAULT PREVENTION FACILITATED BY...

Investing and BankingFONTBONNE UNIVERSITY FINANCIAL LITERACY AND DEFAULT PREVENTION

FACILITATED BY JAMES “VINNY” VINCENTASSOCIATE DIRECTOR, FINANCIAL LITERACY LIAISON

Savings versus Investing

Saving: used to accomplish short-term/mid-term goals (vacations, holidays, emergencies, etc.) Checking Accounts Savings Accounts Money Market Accounts Certificates of Deposit (CDs) Bonds

Investing: used to accomplish long-term activity (retirement, college, etc.) Impact of Inflation: invest in areas which will maximize your return to combat against inflation (+3-4% per

year) Risk and Return Relationship: the higher the return, generally the higher the risk; can you afford a setback? Impact of Long-term Investing: the longer you let your money sit, the greater the return you require Simple Investment Options are Best: mutual funds, index funds, employer plans, guaranteed funds, IRAs

Banks versus Credit Unions

BanksMore

fees

Higher fees for bounced checks, ATMs, etc.

More branches/ATMs availabl

e

More savings plans/lo

an program

s

Higher minimu

m balances required

Low interest rates on

savings/higher interest

rates on loans

Very structured, more procedures/rules

Credit Unions

Fewer

fees

Lower fees for bounced checks, ATMs, etc.

Usually one

location or one region

Fewer savings plans/lo

an program

s

Low or no

minimum

balance required

Higher interest rates on

savings/lower interest rates on

loans

Loose structure, fewer procedures/rules

Tips for Banking

Utilize Direct Deposit

• Many banks waive account fees if your paycheck is direct deposited into your account

• Convenience of avoiding bank lines

Average Daily Balance

• Some banks charge a fees if your balance falls below a certain amount

Basic Checking

• Pays no interest but requires no minimum balance

• May limit number of checks or ATM withdrawals

Avoid ATM Fees

• Out-of-network ATMs may charge a fee on top of your bank’s fee

• Some banks charge a fee for using your card as a debit at the grocery store!

Wise Tips of the Trade

Have the “Customer” mentality• The banks are

fortunate that you chose them to house your money

• Fight for what is fair

Banking is a privilege• Be responsible with

your money• Avoids overdrafts

• Will accrue a fee for each transaction

Debit Cards• Using your own

money, not borrowing money

• Usually requires a PIN• Money is immediately

deducted

Cashing A Check• Banks will often hold

them a certain number of days

• Money is not always available immediately

Seminar Activity

For this activity, you will need to visit a bank. Step 1: Ask a staff member for information regarding their bank policies and

procedures with regards to their checking and savings account programs. Step 2: Ask a staff member for information regarding any investment

programs the bank may offer to customers. Step 3: Ask for a business card of the staff member who assisted you.

Questions?

Contact James “Vinny” Vincent jvincent@fontbonne.edu 314.719.4353

Office Hours: Monday thru Friday (8:30am-4:30pm)

Lunch taken daily from 12:30pm – 1:30pm