Wants/Needs
What is the Difference between a want and need?
Need - something necessary/required for life
Want- something unnecessary but desired
How does social media influence FOMO?
Social media makes everything look perfect. Vacations, shopping sprees, concerts, etc.
Everything we could ever want is at our fingertips - easy purchasing access
What are 3 reasons why you should open a checking account?
A way to keep your money safe
You have more options for paying
Dealing with checks is easier
You can get cash from an ATM
They make it easy to manage your money
They offer more features than digital wallets
List 3 reasons why you should save
Save for Your Emergency Fund
Save for Retirement
Special retirement accounts, such as a 401(k).
Save for a Down Payment on a House
Save To Maximize Interest Rates
Save for a Vacation, Car, or Other Big Purchase
Save for Irregular or Recurring Expenses
College Education
What is a Bank Statement?
With your checking account, you’ll receive a bank statement that you will want to review on a regular basis.
Something that is desirable and important
Influenced by family, friends, teachers, coaches, television, & movie
What are 2 different ways marketing companies incorporate FOMO in advertisements?
1) Stock Left: A product that’s limited in stock is perceived to be of high quality and people want to buy it.
2) Countdown Timer: Highlights scarcity and to make products appear time-sensitive.
3) Reviews and Testimonials: Reviews and ratings from customers shows how much people love the item.
4) Early Bird Discount: Giving discounts to the first few hundred customers.
5) Gated Content: Gated content requires a visitor to fill a form or register in order to get access to the content.
6) Missed Opportunities: Showing your audience what opportunities they have missed and what they’re about to miss if they don’t take action.
What does it mean to be "FDIC Insured?
In the unlikely event that something caused your bank or credit union to go out of business, the federal government makes sure will you will receive the money you’re entitled to from your deposit accounts.
What are 3 benefits to online banking?
Easier bill payments
24/7 account access.
Simpler fund transfers.
Better access to bank records.
Improved visibility of account balances and transactions.
Ability to sync your accounts with your apps.
Use of mobile apps.
When do you get your bank statement?
Everyone's statement varies- It's at the end of your monthly cycle.
What are the 4 types of values?
Inner
Social
Physical
Financial
What is another word for Herd Mentality
"Bandwagon Effect"
What are 2 things you need to open a checking account?
Identification
Drivers License, State ID, Passport, Social Security Card or Birth Certificate
Proof of Address:
Lease or Utility Bill (electric, heat, water) that displays your name and address
Opening Deposit
A minimum deposit of $25-$100 is usually required to open an account
What does it mean when a Certificate of Deposit (Bond) stops maturing?
Bonds stop earning interest when they mature. At this point, the this asset has no reason not to be cashed.
Overdraft fee
Monthly service fee
Non-sufficient funds (NSF) fee
ATM fee
Paper statement fee
Foreign transaction fee
Account closure fee
Each person has different values which guide their daily decisions
What you will want in your financial future and what you need to feel financially secure depends on your values.
What do most people value in nowadays?
You can be someone who value experiences- it just becomes a problem when it stops you from growing.
Set a plan that allows you to have all these experiences, while also saving money.
Set a goal to plan one large trip a year, or go to only two dinners a month with friends instead of four, or find ways to still have experiences without spending money.
Once you’re clear on your values/ priorities- you can align those with how you make financial decisions.
Every time you make a financial decision you know that it’s coming from a place of value and not a place of impulse.
What is a "Free Checking" account?
Checking account with no monthly maintenance fee and/or minimum balance requirements.
- There may be a minimum deposit amount (maybe $250 per month)
If you fail to meet that, you may lose the free checking status.
- Free doesn’t mean no fees!
You’ll still be on the hook for any overdraft charges and other fees.
50% of your budget goes to essentials/needs
30% of your budget goes to wants
20% of your budget goes to savings
List 2 bank alerts that can keep your account safe
Low Balance Alert
Direct Deposit Alert
Unusual Account Activity
Large Purchase Alert
Large ATM withdrawals
Debit Card Alert
Please define the 4 types of Values
Inner: Trusting one’s gut or following the inner voice
Social: Desire for belonging and relatedness with our family members, neighbors, friends, coworkers, etc.
Physical: Tangible aspects of life, the external world, our physical health and well-being
Financial: Unrelated to how much money we actually have, these values reflect what we think or believe about money.
What is Herd Mentality?
The tendency to choose an option that the majority chooses is due to a cognitive bias.
Herd mentality can influence our decisions either in a positive or negative way
What is an "Interest Bearing" Checking account?
With an interest-bearing checking account, you earn interest on the money in the account
Just as you would in a savings account, but the interest percent is lower.
Unlike a savings account, you can:
Write checks
Use your debit card to make purchases and pay bills.
What is the Rule of Thumb for an "emergency fund"
Emergency fund should have 3-6 months’ of expenses saved
Emergency fund should not be deposited in your checking account
What is Overdraft Protection?
- If you cannot afford the item, the bank will give you a loan or take the money out of your savings account.