Day 23

Today we introduce the Fed., Depository Institutions, and the difference between Saving and Investing (risk pyramid).

We don’t spend much time on the Fed. except to explain that money isn’t real and that it’s perceived value of what the money can buy that determines the value of money.

Spend a good portion of the class explaining the difference (Pros/Cons) between Banks, Credit Unions, and Online Accounts. We generally favor Credit Unions and Online Banks over traditional banks. However, banks have their advantages (there are a lot of locations and many are international)

The idea that money has a price (Interest) is introduced. You can earn it or you can pay it. The choice is yours (here we focus on earning it.)

The Managing Your Cash section has ideas on how to Save money (reasonably short-term – extremely safe places to stash your cash.) All of these ideas are on the bottom level of the risk pyramid.

Budget Question Day 1:
1. It’s the 9th of the Month
  - Teacher: Bank Account = $1,039.64
  - Auto Technician: Bank Account = $1,233.34
  - Associate Professor: Bank Account = $1,928.65
  - Lab Technician: Bank Account = $2,632.20
  - Computer Programmer: Bank Account = $2,759.35
  1. You want to go to the last concert of your favorite Trapstep artists rave. The tickets cost $80. Do you have enough money in your budget?
Day 23 - Banking presentation
Depository Institutions
1. Bank
2. Credit Union
3. Online Savings Accounts
4. FDIC/NCUA
5. Interest/Interest Rate
6. Checking/Savings Accounts
7. Certificate of Deposit (CD)
8. Money Market Account
9. Savings Bond
10. Risk
11. Investment Pyramid