Defintions

1.  5 functions of Management: planning, organizing, staffing, leading, and controlling.
2. Resume: brief written account of personal, educational, and professional qualifications and experience, as that prepared by an applicant for a job.
3. Social Responsibility of business: Social responsibility entails developing businesses with a positive relationship to the society which they operate in.
4. Savings Account: Banks offer savings accounts to customers as a means of saving money.Saving accounts are accounts maintained by retail financial institutions that pay interest but cannot be used directly as money in the narrow sense of a medium.
5. Compound Interest: Compound interest is the type of interest that is paid usually to higher interest rates environments.
6. Simple Interest : interest payable only on the principal; interest that is not compounded.
7. Checking Account: a bank deposit against which checks can be drawn by the depositor.
8. Check Endorsement: Check endorsement is a crucial step in either cashing or depositing a check. If you miss this step, the bank usually cannot proceed with the transaction.
9. Check writing: you write a check using your checking account. You can write a check up to the monetary balance you have in your account.
10. Bank statement: a monthly statement of account mailed by a bank to each of its customers with checking or other accounts, recording the banking transactions and current balance during a period and usually including canceled checks.
11. Checkbook reconciliation: An accounting process used to compare two sets of records to ensure the figures are in agreement and are accurate. Reconciliation is the key process used to determine whether the money leaving an account matches the amount spent, ensuring the two values are balanced at the end of the recording period.
12.  Deposit slip: a slip for listing deposits made to a bank account.
13. Differences between a Bank and a Credit Union: Bank an institution for receiving, lending, exchanging, and safeguarding money and, in some cases, issuing notes and transacting other financial business. Credit union is a cooperative group that makes loans to its members at low rates of interest.   
14. Credit card: a card that identifies a person as entitled to have food, merchandise, services, etc., billed on a charge account.   
15. Credit history: A consumer's credit history consists of information such as: number and types of credit accounts, how long each account has been open, amounts owed, amount of available credit used, whether bills are paid on time, and number of recent credit inquiries. It also contains information regarding whether the consumer has any bankruptcies, liens, judgments or collections. This information is all contained on a consumer's credit report.
16. Credit report: A
    detailed report of an individual's credit history prepared by a credit bureau and used by a lender to in determining a loan applicant's creditworthiness, including:
    
    1. Personal data (current and previous addresses, social security number, employment history)
    2. Summary of credit history (number and type of accounts that are past-due or in good standing)
17. FICO score: The FICO Score is calculated from several different pieces of credit data in your credit report.A high FICO score indicates that you have healthy card balances and a low debt-to-income ratio, which compares the amount of money you owe in monthly debt payments to your take-home pay.
18. Debit card: resembles a credit card but functions like a check and through which payments for purchases or services are made electronically to the bank accounts of participating retailing establishments directly from those of card holders.
19. Credit and interest rate: Credit is an entry of payment or value received on an account. Interest rate is the usual way of calculating interest as a percentage of the sum borrowed.

                  

  

Banks vs. Credit Unions

Banks vs. Credit Unions Flyer

By Valentina Torres

• Credit Union is a non-profit money cooperative whose members can borrow from pooled deposits at low interest rates.

• Bank is a financial intermediary that accepts deposits an channels deposits into lending activities either by directly by loaning or indirectly through capital markets.

Credit Unions

• At credit unions, depositors are called members. Each member is an owner of the credit union.
• Since credit union members are owners, each member, regardless of how much money they have on deposit, has one vote in electing board members. Members can also run for election to the board.
• Credit unions are not-for-profit financial cooperatives, whose earnings are paid back to members in the form of higher savings rates and lower loan rates.
• Credit unions focus on consumer loans and member savings, as well as services needed by the membership.

Banks

• Banks’ depositors are called customers. Customers have no ownership interest in the institution. Banks are owned by investors who may or may not be depositors.
• Banks are owned and controlled by stockholders, whose number of votes depend upon number of shares owned. Customers don’t have voting rights, cannot be elected to the board, and have no say in how their bank is operated. Directors are selected by current directors or by large block stock acquisition.
• Banks are for-profit corporations, with declared earnings paid to stockholders only.
• Banks focus on commercial loans and accounts and services that generate significant income.

 

Financial Advice

Financial Advice

1. Explain what a credit report is. Name 3 facts that you learned about a credit report.

 

A credit report contains information about you, your credit, some bill repayment history, public records and the status of your credit accounts.



 

• Three credit reporting agencies are Equifax, Experian, and Trans Union.
• The FACT Act entitles you to one free copy of your credit report every 12 months from each of the three nationwide credit reporting companies.
•   Any organization or individual who obtains a copy of your credit report under false pretenses can be fined and jailed for up to a year.

2. Explain what your credit score is. Name 3 facts about your credit score.

 

Your credit score is calculated from your credit report.

• A credit report score in the 680-and-up range is a good score.
• When you apply for a credit card, mortgage or even a phone hookup, your credit score is checked.
• Credit scores makes it possible for stores to accept checks, for banks to issue credit or debit cards and for corporations to manage their operations. Depending on your credit score, lenders will determine what risk you pose to them.

3. What advice would you give about ID theft?

 

Identity theft happens when someone steals your personal information and uses it without your permission. It’s a serious crime that can wreak havoc with your finances, credit history, and reputation — and can take time, money, and patience to resolve.Don’t give out your SSN unnecessarily (only for tax reasons, credit or verified employment.) Before providing personal identifiers, know how it will be used and if it will be shared.Use a shredder to dispose of documents with personal information.Use firewall software to protect computer information. Keep virus and spyware software programs updated. If your identity has already been taken be sure to notify your bank so they can put a stop on the credit card.