WHAT IS MONEY?

If you get money today:

You can do a lot of things with it

either save it. Spend all of it. Spend a part of it. or invest it.

? Do you say for the money your parents give. Allowance Or Income

The first thing that one should do after he/she receives an allowance or pocket money or income is prepare a BUDGET

? Is the first thing you should do each time you prepare a budget or receive your allowance.

Save

What else can you do with your pocket money/allowance

Spend all of it. Spend a part of it. or save it.

Saving & Investing

SavingInvesting

On the face of it saving and investing or making investments are the same thing.

They are both things that we do with our spare money.

Investments are money or other assets purchased with the hope that it will generate income, or appreciate in the future.

Savings are money kept over a period of time, usually in a bank or even in an old jam jar without the risk of loss or making profit.

When you save money your capital is secure. You are guaranteed to get back the sum you put in, plus interest.

When you invest you have no such guarantee. Your money/capital is at risk.

In return for the risk you take you expect to get more back than ? you put in.

In general terms, investment means the use money in the hope of making more money.

In relation to saving it is the deposit made in a bank, Or post office

In hopes getting a future return or interest from it.

Savings -account       

There are two basic kinds of interest:

»simple interest »compound interest

Simple interest

Simple interest is the interest that is figured only once on the principal.Example: If you loaned Rs 300 to a friend for one month and charged her 1% interest .Then at the end of the month you would receive 303.

Savings -account Compound interest is a little different.

With compound interest, the money you earn in interest becomes part of the principal, and also starts to earn interest.

Compound interest is when your interest earns additional interest;

simple interest is when only the original principle earns interest.

Savings -accountSavings accountAn savings account used to deposit money

in the bank.bank have certain rules for the minimum

balance which has to be held in the account.

This account gives interest for the money held in the account.

Money can be added or withdrawn at any time from this account.

Savings -account• Remember that if you add money to your account, your balance might grow a lot more.

• And, if you withdraw or take money out, it might grow much less.

• When you add or take away from your account, you're changing the amount you can earn as well.

• And when you're building a money TV of savings, every rupee counts.

Pass-Bookwhen we open a savings account with

any bank we are given a pass book.

The pass book contains the name of the

person in whose name the account is

opened.Each person is given a separate savings

account number.

the passbook gives you details of deposits & date of deposit, withdrawal… which are made by the person.

Current Account

Current Account

These are basically meant for businessman, firms and companies.

It does not give interest for the money held in the account.

Internet BankingFixed DepositsA fixed deposit is meant for those

investors who want to deposit a lump sum of money for a fixed period.

say for a minimum period of 15 days to five years and above.

Investor gets a lump sum (principal + interest) at the maturity of the deposit. 

Fixed deposits also give a higher rate of interest than a savings bank account. 

Internet BankingRecurring DepositThe minimum amount of Recurring

Deposit varies from bank to bank but usually it begins from Rs 100/-.

a specific sum of money is deposited on a monthly basis for a specific period of 6 months to 10 years.

At the end, you will get the principal sum as well as the interest earned during that period.

Internet BankingINTERNET BANKINGOne of the main reasons that people use

Internet banking over regular banking is because of the convenience.

Everybody wants methods that are going to save them time and make daily tasks easier on them, and that is exactly what Internet banking does.

allows customers to conduct financial transactions on a secure website

ATM CUM DEBIT CARD

ATM /Debt cards and Credit cards.These are basically issued by banks to persons who have an account with them.

An ATM card gives you access to your bank savings and current account 24 hours a day, 7 days of the week.

There are two types of cards they are theDebit and credit cards.

ATM /Debt cards and Credit cards.credit cardsA plastic card with magnetic strip on one

side which is used to swipe. It is used to buy goods and services.The bank issuing the credit card pays the

bill first then collects the money from the holder of the card.

Credit card offers a 25 day grace period during which no interest is charged.

ATM /Debt cards and Credit cards.Debit cardsA plastic card with magnetic strip on

one side which is used to swipe.It is used to buy goods and services.The bank issuing the debit card pays

the bill first then collects the money from the holders account immediately.

The Reserve bank of India was set up on April 1, 1935 in Kolkata.

The first governor of RBI was Sir Osborne Smith.

The First Indian Governor of RBI was Sir.C.D.Deshmukh(1943-1949)

500 RUPEE NOTE

You know there are identification marks

in a Indian rupee note that will help blind people in identifying the notes.

It is usually represented by a raised black circle OR triangle

Have we ever looked closely at a currency note or a coin?

Have you heard of the word Security Thread in a note?

It is a security feature in notes to protect against FORGERY/MAKING OF FAKE NOTES

It consist of a ribbon which is threaded through the paper .

The ribbon is usually made up of metal foil or plastic and usually has some text or numbers engraved on it.

Bartering worked for many years until it was no longer convenient to trade.

After bartering, metal became the most popular form of money in most of Europe and Asia.

People used gold, silver, and copper as money because they were pretty and hard to get.

The problem with the metal was that it was too heavy.

People hated carrying it around.

Kids next time you look at money remember that it has a very interesting history behind it.