Unit TwoSaving, Investing and

Risk Management

Lesson One: Financial

Institutions

Objective:Students will be able to identify

what a financial institution is and some of the services they

provide.

What is a Financial Institution?

A financial institution is an organization established to assist people with their financial matters.

Examples of Financial Institutions: • Credit unions• Banks• Savings and Loans• Investment firms

Who uses a Financial Institution?

Nearly everyone who • Works• buys a car• rents an apartment• purchases a house• buys food and clothing

Financial institutions help people with their financial transactions.

Why are Financial Institutions important?

• They help us save for the future. • They hold and transfer money for

individuals and businesses. • They handle credit and loan

transactions.• They provide mortgage and

consumer loans.

Most financial institutions now offer online banking where transactions can be made from an off-site computer.

invest- to commit money to gain a profit or earn interestprincipal- the amount of money originally investedinterest- a fee received or paid for the use of moneyopportunity cost- the next best thing given up when making a financial choice.

Small Group Activity1. Each group will be assigned a Know It All Card to read. (Pg.

34-35)

2.Read and discuss the card. You may also use the old workbook or the Internet for additional information.

3. Work together to create a 4 slide PowerPoint summarizing the type of savings. (You may add animations and transitions after your content slides are complete.) Don’t forget to increase the font size for easy viewing!•Type of Savings•What it is•2-3 facts •Risk level•Bonus points given to those who go above and beyond!

4.Groups will share with class on the big screen. Be prepared for each person to speak on the subject.

5.Students will take notes on each savings type during the presentations.