Financial Services

Sponsored by Discover and Discovery Education

Unit Overview

Using Financial Services introduces you to the scope of services offered by banks and other financial institutions. The unit begins with an introduction to financial institutions, including what they are and how they can help people achieve their financial goals. Then you explore what to look for when choosing a financial institution and learn the differences between banks, credit unions, and other financial service providers. Next, you will learn about what information is needed to open an account and how to decide what products they will need.

Section A - Understanding Financial Institutions

How can banks and credit unions help you achieve your financial goals?

Saving is a key principle. People who make a habit of saving regularly, even saving small amounts, are well on their way to success.  It’s important to open a bank or credit union account so it will be simple and easy for you to save regularly.   Then, use your savings to plan for life events and to be ready for unplanned or emergency needs.   

Safety of Financial Institutions
Commercial Banking	Federal Deposit Insurance Corporation Each depositor insured to at least $250,000 per insured bank
Credit Unions	National Credit Union Administration Each depositor savings is federally insured to $100,000 per credit union

Click here to watch a BrainPOP video on Banking.

You will need to create a free account. You can still access all the great features BrainPOP offers but now in your account.

Class Code: flour5601

Section B – Deciding Where and How to Bank

This module will give you an overview of factors to consider when choosing where to bank. You will learn how to compare features and costs of services offered by financial institutions.

Complete the learning module below and keep any necessary notes.

Section C – Opening New Accounts

What financial products will you need? How do you open an account at a financial institution?

In this section you will get an overview on the functions of a Student Checking Account and how to Opening a Checking Account.

Checking Account

A checking account is a type of bank account that offers easy access to deposited funds. Unlike other types of bank accounts – including savings – checking accounts typically allow unlimited withdrawals and deposits, making them a good choice to cover your everyday spending.

Student Checking Account

Student checking accounts function just like standard checking accounts, but they tend to offer lower account minimums and lower fees. Many banks and credit unions, for example, offer a monthly maintenance fee waiver – or at least a discount on the monthly fee – for student checking accounts. As with other checking accounts, you may be able to avoid fees if you set up direct deposit, maintain a minimum daily balance or make a certain number of debit card purchases each month. Student checking accounts are typically available to students ages 17-24; you may be required to provide proof of active enrollment in a qualifying high school, college, university or vocational program. 

Opening a Checking Account

Eligibility requirements for checking accounts are few. All banks require you to be 18 years of age or older, though most allow a minor to be a co-owner of a parent or legal guardian's account. Some banks turn you down if you have criminal convictions related to fraud or financial crimes or if another bank closed your account due to mismanagement, such as unpaid overdrafts.

To ensure the process of opening your checking account goes smoothly and efficiently, bring the appropriate documents with you to the bank, including photo identification, your Social Security card, and proof of current address, such as a utility bill, cable bill, mortgage statement, or signed lease agreement. While not all banks require every one of these banking documents, it is better to have them and not need them.

Beware of Banking Fees

Imagine that you are at an event that you bought tickets for. You want to buy a souvenir from one of the vendors but realize that you don’t have any cash, which is all they accept. You go to the ATM and find that it is going to charge you $3 to withdraw money from your account. Do you accept it? Why or why not?

How to Avoid Monthly Checking Account Fees

Meet the minimum balance requirements

Enroll in direct deposit

Open a savings account at the same institution

Look for free checking elsewhere