Personal Finance

1. Personal Finance Unit 3-Money and Banking Chp. 7 Day 13

2. Other Banking Services • Some businesses may not accept a personal check. Instead you may use: • Certified check • Cashier’s check • Money order • Traveler’s checks

3. Certified Check • A personal check that has been stamped and signed by a bank officer. • Guarantees that your account has the money to cover the check. • Charged a fee to obtain. • Once certified, the bank immediately removes the money from your account.

4. Cashier’s Check • A bank’s own personal check signed by the bank’s cashier. • Payment comes from the bank’s own money. • You pay the amount for the check plus a fee.

5. Money Order • A check that draws on the money of the bank or other financial business that issued it. • Many companies sell money orders and take responsibility for paying them. • Your name appears on the money order. • Cost is amount of money order plus a fee.

6. Traveler’s Checks • Checks that you pay for in advance, and if they are lost or stolen, the company that you bought them from replaces them. • Two signature lines: one you sign when you purchase them, the other you sign when you use them to pay for something. • Payment is guaranteed by the organization that issued them.

7. Traveler’s Checks (cont.) • Record them like a check in the register given when you spend them. • Most important advantage: you can get them replaced quickly if they are lost or stolen.

8. Wire Transfer • An electronic communication that moves money from an account in one bank to an account in a different bank.

9. Advantages of Wire Transfers • Immediate transfer of money to a distant location. • Useful in an emergency.

10. Safe Deposit Box • Boxes with individual locks that you may rent from a bank. • Located in a vault, where they are safe from fire, theft, and loss. • Cost to rent is between $30 to $50 per year.

11. How Safe Deposit Boxes Work • You sign a signature card, show a valid ID, and the bank gives you a key. • You must sign in, show a valid ID, and give your key to a bank employee. • The bank employee uses your key and their key to gain access to the box.

12. Assignment • Article Presentations due tomorrow. • Start studying for Unit 3 Exam on Friday!