Health DMA

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Health DMA Please take out a piece of paper and complete the following: 1.Write down the vocabulary word and definition. 2. Choose ONE of these options and complete it. Draw a picture that illustrates/explains the vocabulary word. Rewrite the definition in your own words. Write a sentence that includes the term and the information from the definition. Affect How we express our innermost feelings and how other people observe and interpret our expressions.

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Health DMA. Please take out a piece of paper and complete the following: 1. Write down the vocabulary word and definition. 2. Choose ONE of these options and complete it. – Draw a picture that illustrates/explains the vocabulary word. – Rewrite the definition in your own words. - PowerPoint PPT Presentation

Transcript of Health DMA

Page 1: Health DMA

Health DMAPlease take out a piece of paper and complete the

following:1.Write down the vocabulary word and definition.2. Choose ONE of these options and complete it.–Draw a picture that illustrates/explains the vocabulary word.–Rewrite the definition in your own words.–Write a sentence that includes the term and the information

from the definition.

Affect

How we express our innermost feelings and how other people observe and interpret our expressions.

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Today’s Agenda DMA Banks & finance

Pre-test Types of banks Types of accounts Types of loans

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Pre-TestEveryone needs a handoutWrite all your answers on your own paper.

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Insured Financial Institutions

Banks/Thrifts: Federal & state laws Make loans, pay checks, accept deposits, & other

services

Credit Unions: Same as banks (services) Non-profit financial institutions Require a membership

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Check Your Balances…. Always know how much is in your

account!

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FeesMonthly maintenance feesPenalty feesOverdraft fees

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FDICDeposit $ into a bank/thrift/credit

union up to $250,000.00

FDIC/NCUA insures it

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Bank vs. Check-Cashing ServicesWhich is the better deal?

Check-Cashing Services

Check-cashing fees:4 x $5 = $20 a month

$20 x 12 = $240 a year

Money order fees:5 x $1 = $5 a month$5 x 12 = $60 a year

Total: $300

Bank

Monthly fee:$5 a month

$5 x 12 = $60

Box of checks: $18Total: $78

Savings: $222

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Interest% of your balance that the bank pays you for keeping your $ at that bank

Description +/- Balance

Opening Balance +$100 $100Withdrawal -$20 $80Fees -$4 $76Interest +$1 $77

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If the FDIC insures accounts… how do people lose so much $ in the stock market?Discuss with a neighbor…

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Non-Deposit Accounts Includes stocks, bonds, & mutual funds Not FDIC-insured

You may risk losing your investment.

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Name That Service Everyone needs a handout

Put the name of the service next to its description The signs around the room have the names

of the services

Move around quietly to find the answers

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Why is credit important?Discuss with a neighbor…

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Why Is Credit Important? It’s convenient Emergencies Pay for purchases over time Can affect your ability to obtain employment,

housing, & insurance

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What is Collateral? Security/assest you pledge to the lender If you do not repay the loan

the lender is allowed to take/keep the collateral.

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Home LoansHome Purchase Loans

Primary loan for purchasing a home

Home Refinance LoansLoan that replaces primary home loan

Home Equity LoansSecond mortgage/loan secured by the

borrower’s home

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Home Equity

A lender may allow you to borrow up to a certain percentage of your home’s value (usually 80%)

Value of Home $250,000

Minus debt -200,000 Equity $50,00

0

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The Four Cs Capacity: Your ability to meet payments Capital: Value of your assets and net worth Character: How you paid your bills or debts in the

past Collateral: Property/assets used to secure the loan

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Predatory Lending Practices Predatory loans:

Are usually more expensive than other loans

Have repayment terms many consumers cannot meet

Exploit borrowers

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What are pay-day loans?List some companies that offer them…Discuss with a neighbor….

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Pay-Day Loan Services Short-term, costly loans

If you “roll over” or “renew” your loan, the lender will charge an additional fee:

$230 + $30 additional fee = $260!

Loan Amount

Loan Term Fee

You write a check

for:

$200 2 weeks $30 $230 (391%)

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When You Need $ Fast

Borrow from yourself first put money into an emergency savings account

Comparison shop for loans Look at ALL fees & risks

Check out emergency cash options with your bank