Junior AchievementJunior Achievement3.13.1

““Bank On It”Bank On It”

Vocabulary Review Time!Vocabulary Review Time!

Income:Income:

The payment for the use of resourcesThe payment for the use of resources

Scarcity:Scarcity:

A situation where wants are greater A situation where wants are greater than the resources available to than the resources available to satisfy those wantssatisfy those wants

New VocabularyNew Vocabulary

Bank:Bank: A place of business that receives money, lends it to A place of business that receives money, lends it to

borrowers, and provides other services, such as checking borrowers, and provides other services, such as checking accounts and safety deposit boxesaccounts and safety deposit boxes

Credit Union:Credit Union: A financial institution owned by its members that provides A financial institution owned by its members that provides

savings and checking accounts, loans and other servicessavings and checking accounts, loans and other services

……More VocabularyMore Vocabulary

Circular Flow:Circular Flow: The movements of goods, services, resources, and money The movements of goods, services, resources, and money

between households and businessesbetween households and businesses

Households:Households: Families or individuals who pay money to businesses for Families or individuals who pay money to businesses for

goods and servicesgoods and services

Savings is an important step on the Savings is an important step on the way to financial well being, both in the way to financial well being, both in the

short term and the long term.short term and the long term.~www.investorguide.com~www.investorguide.com

Do you agree with this statement? Why or why not?Do you agree with this statement? Why or why not?

If you received $10.00 from someone for your birthday, how If you received $10.00 from someone for your birthday, how much of it would you save?much of it would you save?

Customers deposit their money into banks or Customers deposit their money into banks or credit unions for safe keeping. Usually credit unions for safe keeping. Usually

people put their money in checking accounts people put their money in checking accounts so they can pay bills and buy goods and so they can pay bills and buy goods and services…. Then people write checks to services…. Then people write checks to

access their money.access their money.

Banks As A Business!Banks As A Business!

Credit Cards

SafetyDeposit Boxes

AutomaticTeller

Machines(ATM)

Debit Cards

Personal Loans

Checking Accounts

Savings Accounts

Online Banking

Banks provide services such

as:

$$$ All Around JA BizTown$$$ All Around JA BizTown

DEPOSITS

LOANS

BUY MERCHANDISE

SALARY

Business

Bank

Student

Economic Flow in a Free Economic Flow in a Free Enterprise System…Enterprise System…

In a free enterprise system money In a free enterprise system money flows in a circular direction, flows in a circular direction, sometimes in both directions. The sometimes in both directions. The people put money into banks and people put money into banks and banks use their money to help banks use their money to help businesses. Then people buy goods businesses. Then people buy goods or services from those businesses. or services from those businesses.

Households pay money to businesses Households pay money to businesses for goods and services. This makes the for goods and services. This makes the

flow of money go back and forth flow of money go back and forth between households and businesses. between households and businesses.

Remember…businesses are Remember…businesses are companies that make or sell companies that make or sell

products or provide services to products or provide services to customers.customers.

Businesses also pay money to households Businesses also pay money to households (people) in exchange for resources such as (people) in exchange for resources such as

work.work.

Remember that banks, credit unions and Remember that banks, credit unions and other financial institutions play an important other financial institutions play an important

day-to-day role in the operation of the day-to-day role in the operation of the economy and the circular flow! economy and the circular flow!

Now it is time to see how much you Now it is time to see how much you remember… Turn to PG. 27 in your remember… Turn to PG. 27 in your

workbook.workbook.