Health DMA
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Transcript of 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.
Today’s Agenda DMA Banks & finance
Pre-test Types of banks Types of accounts Types of loans
Pre-TestEveryone needs a handoutWrite all your answers on your own paper.
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
Check Your Balances…. Always know how much is in your
account!
FeesMonthly maintenance feesPenalty feesOverdraft fees
FDICDeposit $ into a bank/thrift/credit
union up to $250,000.00
FDIC/NCUA insures it
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
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
If the FDIC insures accounts… how do people lose so much $ in the stock market?Discuss with a neighbor…
Non-Deposit Accounts Includes stocks, bonds, & mutual funds Not FDIC-insured
You may risk losing your investment.
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
Why is credit important?Discuss with a neighbor…
Why Is Credit Important? It’s convenient Emergencies Pay for purchases over time Can affect your ability to obtain employment,
housing, & insurance
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.
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
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
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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
Predatory Lending Practices Predatory loans:
Are usually more expensive than other loans
Have repayment terms many consumers cannot meet
Exploit borrowers
What are pay-day loans?List some companies that offer them…Discuss with a neighbor….
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%)
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