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					MONEY, MONEY, MONEY! WORKBOOK
L&N FEDERAL CREDIT UNION
                      Credit Unions
                  What is a Credit Union?
Credit unions are known as not-for-profit financial cooperatives. While credit
unions resemble other financial institutions in many ways, there are three
important characteristics that distinguish them. Credit unions are:

   Member owned
        o A credit union is owned by its members, who elect its leadership
            (Board of Directors). The Board of Directors serves on a voluntary
            basis.
        o Each member owns one share of the credit union regardless of how
            many accounts he/she has or how much is on deposit.

   Not for profit
          o Earnings are returned, after operating expenses are deducted, to
              members in the form of higher earnings on their deposits
              (dividends), lower loan rates (interest), and additional products and
              services.

   Financial cooperatives
          o Members pool their money (shares) so that the credit union can
              make loans and provide other financial services to the membership.

How does the credit union make money?
The credit union is both a borrower and a lender. The credit union borrows
money from its members via their deposits. The credit union pays its members in
the form of dividends for their deposits. The credit union earns money by
investing the member’s deposits and by making loans to members. The credit
union’s net income comes from the difference between what the credit union
pays in interest on deposits and earns from investing and lending deposits.

How are you eligible to join a credit union?
Depending on the individual credit union, there can be three ways a person can
be eligible to join a credit union. Those ways are: immediate family member of
an existing member, live in the same household as an existing member, or work
for an employer that offers credit union membership as a benefit. However, L&N
is different. L&N is a community chartered credit union meaning that if you live,
work, worship, go to school, or belong to a legal entity in certain counties you are
eligible to join the credit union. Our counties include: Jefferson, Oldham,
Shelby, Spencer, Trimble, Henry, Bullitt, Laurel, Pulaski, Rockcastle, Whitley, or
Knox counties in Kentucky or Clark or Floyd counties in Indiana.
                       Credit Unions vs. Banks
       How are credit unions unique from other financial
                         institutions?



                                   Credit Union   Bank
Who Owns It?



Who runs the Institution?



Who Does This Institution Serve?



What Does It Do With Any
Additional Income?


What Are Its Patrons Called?



What Is Its Purpose?
Job Titles & Duties
Branch Operations Officer (BOO)
Market the CU in their designated area by attending meetings, dinner, and functions. To
improve the Credit Union's competitive position, consistent with its mission, within its
established communities while supervising the operations of a remote branch facility.
Increase member penetration and use of credit union services among their established
community area. Be available to coordinate and/or attend various community functions
for the purpose of representing the credit union to the community.

Branch Operations Manager (BOM)
The BOM will supervise the daily operations of a remote branch facility including
Member Service operations, Lending, and other operational functions while working
closely with the Branch Operations Officer.

MDO Coordinator (Member Development Officer)
MDO Coordinator is to monitor and assist the Branch staff with questions and be an
overall coordinator between the staff, the Branch Manager and Branch Supervisor. With
the continued effort to develop the entire branch staff and promote the retail sales
environment the Member Development Coordinator would assist branch management
on a daily basis. To assist with scheduling and various branch responsibilities that will
allow the management in the branches to continue with their duties overseeing the
branch operations.

Member Development Officer (MDO)
Work to develop deeper relationships with new and existing members of the credit union.
Promoting the sales environment with members and staff in regards to member
development throughout the branch. Provide routine information concerning services to
new and existing members. Open new member service accounts; handle any questions
or problems in regards to member service issues while looking for cross-sell
opportunities to better service the members. Direct member to appropriate MDO for
lending needs when situations warrant lending processing and or approval

Training Mentor
Assist new employees transitioning from classroom to the job, Assess new & current
employee training needs, Connect employee to resources of the daily branch operations,
Act as a liaison between trainee and training department, Assist trainee/manager in
completing 30-60-90 day new employee evaluations, Solicit feedback from trainee.


Member Service Representative (MSR)
MSR will assist members with their financial transactions, involving paying and receiving
cash and other negotiable instruments. MSR may be asked to travel to other offices or
seminars, which might require an overnight stay. May need to sit or stand for long
periods of time while processing member needs. All employees are expected to be
neat, clean and dress in a professional manner.
              Savings Accounts
Regular Savings
Features                                 Benefits
$5 minimum balance                       Establishes and assures continuing
                                         membership
Membership in the credit union           Allows access to all credit union’s
                                         benefits, Convenient
Competitive dividend rate                Earn money
Simple interest earned daily and paid    Earn money
quarterly
Statements mailed quarterly              Easy, Convenient
Payroll deduction/direct deposit         Convenient, Security, Peace of mind
available
Funds federally insured up to $100,000   Security, Peace of mind

Terms and Conditions
 Must be eligible for membership through community charter or immediate
   family member

Opportunity to explain product
 Eligible individual inquires about joining the credit union
 Eligible individual, not currently a member, inquires about opening another
  credit union account or service
Captain Cash
Features                                 Benefits
Minors 12 years old and younger          Help children to become comfortable
                                         with banking transaction
Need $5 to open account                  Saves money
Simple interest earned daily and paid    Earn money
quarterly
There are mailings and planned events    Helps them to become involved with
just for them                            banking practices
Statements mailed quarterly              Easy, Convenient

Opportunity to explain product
 A parent wants to introduce their children to financial institutions
 A parent wants to open their child a savings account
 A parent inquires as to how they can get their child excited about saving
  money


Christmas, Vacation, & Special Savings
Features                                 Benefits
Competitive dividend rate                Earn money
Simple interest earned daily and paid    Earn money
quarterly
Statements mailed quarterly              Easy, Convenient
Payroll deduction/direct deposit         Convenient, Security, Peace of mind
available
Available for any special need           Convenient

Terms and Conditions
 Must have regular share account with $5 balance
 $5.00 to open
 $0.01 to keep open

Opportunity to explain product
 Mention of travel plans, taxes, weddings, insurance, children’s account, or
  special occasion
 Declined for loan to payoff holiday bills or vacation
 Had checks returned NSF or late loan payments and gave the holiday season
  as an excuse
             Checking Accounts
CareFREE Checking
Features                                  Benefits
No minimum balance                        Save money
No monthly fee                            Save money
Unlimited check writing                   Save money, Convenient
Free Internet access                      Save money, Convenient
Free Daisy                                Convenient
Free Debit Card                           Save money, Convenient
Free ATM Card                             Save money, Convenient
Free unlimited ATM access at all L&N      Save money, Convenient
machines and no surcharge at all
Alliance One machines

Opportunity to explain product
 Member says that they do not keep a high balance in their account however;
  they would like to open a checking account.
 Member does not like to pay the $3 household maintenance fee. Mention
  that if a CareFREE checking account was opened that fee could be avoided
  in the future.
 Member is looking for a basic checking account.
 Complain of high fees on their checking account at another institution
 Opening a new savings account
 Large cash withdrawal on payday (to pay bills or deposit to another institution)
 Deposits or cashes personal their personal check from another institution
 Pays loan with a personal check from another institution
Gold Checking
Features                                  Benefits
$2000 minimum balance                     Save money
No monthly fee                            Save money
Earns dividends (if balance drops         Earn money
below $2000, $10/month service
charge, but still earns dividends)
Unlimited check writing                   Save money, Convenient
Free Internet access                      Save money, Convenient
Free Daisy                                Convenient
Free Debit Card                           Save money, Convenient
Free ATM Card                             Save money, Convenient
Free unlimited ATM access at all L&N      Save money, Convenient
machines and no surcharge at all
Alliance One machines

Opportunity to explain product
 Member keeps a $2000 balance in their checking account. Tell them that if
  they upgraded to a Gold checking account they could earn dividends on their
  money.
 Large cash withdrawal on payday (to pay bills or deposit to another institution)
 Deposits or cashes personal their personal check from another institution
 Pays loan with a personal check from another institution
Premium Checking
Must have 3 or more services (including checking) and an average
aggregate monthly balance of $40,000 or greater
Features                              Benefits
No minimum balance                    Save money
No monthly fee                        Save money
Earns dividends                       Earn money
Bonuses on loan and certificate rates Earn money, Save money
Unlimited check writing               Save money, Convenient
Free checks (basic style)             Save money
Free Debit card                       Save money
Free official checks                  Save money
Free stop payments                    Save money
Free Money Orders                     Save money, Convenient
Free Internet access                  Save money, Convenient
Free Daisy                            Convenient
Free Debit Card                       Save money, Convenient
Free ATM Card                         Save money, Convenient
Free unlimited ATM access at all L&N  Save money, Convenient
machines and no surcharge at all
Alliance One machines

Opportunity to explain product
 Member has 3 services with the Credit Union and an average aggregate
  monthly balance of $40,000 or greater.
 A member is placing a check order with you. Mention that if they upgraded to
  Premium checking account they could receive basic style checks for free.
 A member is buying a money order, official check, stop payment or certified
  check from you. Mention that if they upgraded to a Premium checking
  account they could receive these services for free.
 Member is opening a certificate
 Large cash withdrawal on payday (to pay bills or deposit to another institution)
 Deposits or cashes personal their personal check from another institution
 Pays loan with a personal check from another institution
Preferred Checking
(For members 50 years and older)
Features                                     Benefits
No minimum balance                           Save money
No monthly fee                               Save money
Unlimited check writing                      Save money, Convenient
Free checks (basic style)                    Save money
Free Daisy                                   Convenient
Free Debit card                              Convenient, Save money
Free ATM card                                Convenient
Free Internet access                         Save money, Convenient
Free unlimited ATM access at all L&N         Save money, Convenient
machines and no surcharge at all Alliance
One machines

Opportunity to explain product
 You notice on a members account that they are 50 plus years old.
 A member over 50 years old is placing a check order with you. Mention that if
  they upgraded to Preferred checking account they could receive basic style
  checks for free.
 Large cash withdrawal on payday (to pay bills or deposit to another institution)
 Deposits or cashes personal their personal check from another institution
 Pays loan with a personal check from another institution
Superior Checking
(For members 50 years and older)
Features                                  Benefits
No monthly fee                            Save money
Earns dividends (if balance drops         Earn money
below $2000, $10/month service
charge, but still earns dividends)
Free checks (basic style)                 Save money
Unlimited check writing                   Save money, Convenient
Free money orders                         Save money
Free official checks                      Save money
Free certified checks                     Save money
Free Internet access                      Save money, Convenient
Free Daisy                                Convenient
Free Debit card                           Convenient, Save money
Free ATM card                             Save money, Convenient
Free unlimited ATM access at all L&N      Save money, Convenient
machines and no surcharge at all
Alliance One machines

Opportunity to explain product
 You notice on a members account that they are 50 plus years old.
 A member over 50 years old is placing a check order with you. Mention that if
  they upgraded to Preferred checking account they could receive basic style
  checks for free.
 A member over 50 years old is buying a money order, official check, or
  certified check from you. Mention that if they upgraded to Superior checking
  account they could receive these services for free.
 Large cash withdrawal on payday (to pay bills or deposit to another institution)
 Deposits or cashes personal their personal check from another institution
 Pays loan with a personal check from another institution




Terms and Conditions of All Checking Accounts
   $0 to open, just deposit enough to cover the cost of checks
   $20 fee if account is closed within 6 months of opening
   If account remains inactive for 6 months, $5/month service fee will be
    assessed until balance reaches zero and is closed by the credit union

***Only one Preferred, Superior, Gold, or Premium Checking account per
membership. If the member has more than one checking account, they must
choose which account to make a “special” checking and all others must be
CareFREE.
          Share Certificate (CD)
Features                             Benefits
Variety of terms (91 days to 5 years)Able to choose term that best meets
                                     investment needs
Rates change weekly (based on market Earn money
conditions)
Dividends compounded daily and paid  Earn money
quarterly or monthly (91 day and 6
month earn simple interest paid at
maturity)
Statements mailed quarterly          Convenient

Terms and Conditions
 $1000 minimum balance (1-5 year terms)
 $2500 minimum balance (91 day, 6 month, 15 month, 18 month terms)
 $500 minimum balance (Youth Certificate – for members under 18)
 Early withdrawal penalty for certificates with maturity of 1 year or less –
   Dividends earned since date of issuance or 90 days dividends (the lesser of
   the two)
 Early withdrawal penalty for certificates with maturity greater than 1 year –
   Dividends earned since the date of issuance or 180 days dividends (the
   lesser of the two)
 Monthly dividends available for certificates with 1 year or less term
 $10,000 minimum balance to receive monthly dividends for all certificates with
   term greater than 1 year
 Automatically “rolls over” into the same term certificate at the current rate
 The member can close the certificate within 10 days of maturity without
   penalty
 10-day notice when CD is reaching maturity
 10-day grace period once CD has matured


Opportunity to explain product
 Making a large deposit into a savings account
 Complains about dividend rate on regular share account
 Mention of investment with another institution ready to mature
 Asks if we can pay dividends monthly on share account
Mention the need for supplemental income from dividends from savings
                 Auto Financing
Traditional Auto Loan
Features                                 Benefits
Rates are competitive and our terms      Save money, Convenient
plentiful
Rates and Terms are based upon the       Save money, Convenient
Model Year of the vehicle being
purchased and the member's credit
history
We generally finance up to the retail    Save money, Convenient
value of a vehicle as quoted in the
N.A.D.A. Value Guide plus any taxes or
transfer fees associated with the
vehicle
We offer Payment Protection Plan for     Security, Peace of Mind
eligible members, Mechanical
Breakdown Coverage, and Guaranteed
Auto Protection on all eligible auto
loans

Opportunity to explain product
 Member mentions to you that they are shopping around for a new car and
  need a loan
                 Home Financing
First Time Home Buyer Program
Features                                  Benefits
Our First-Time Home Buyers program        Convenient, Easy
will take you through the sequence,
step-by-step, and provide useful
assistance for every aspect of the
home-buying process
This program has no discount points,      Save money
no origination fee, reduced closing
fees, and requires an Escrow account
to pay for items such as property taxes
and insurance
We can finance up to 100% of your         Convenient
purchase up to $125,000
Available in Fixed Rate and Adjustable    Affordable, Convenient
Rate versions that allow you to choose
the plan that fits you like a glove
We offer terms up to 30 years             Convenient
First Mortgage
Features                                  Benefits
Competitive rates and terms               Save money, Flexibility
First Mortgage plans include our Fixed    Flexibility, Options
Rate First Mortgage Loan, Adjustable
Rate First Mortgage Loan, or our
Balloon Mortgage Loan
Plans include 10, 15, 20, and 30 year     Flexibility, Options
terms

Second Mortgages
Features                                  Benefits
Great for consolidating debt, making      Save money, Flexibility, Convenient
home repairs, and many other
purposes
Can get a Second Mortgage at a great      Convenient, Save money
fixed rate for up to 15 years
Special rate offered to members who       Convenient, Save money
take advantage of our 5-year term
Second Mortgage
We will loan up to 100% of the            Convenient, Affordable, Secure
appraised value of your home, you can
accomplish a lot. In addition to these
great features, your Second Mortgage
loan payment does not change

Home Improvement Loan
Features                                  Benefits
Home Improvement loans can be             Quick, Convenient, Save money
processed in as little as 1 week. As a
result, you could have your money in
as little as 2 weeks
This one-time loan offers low rates and   Convenient, Saves Time, Easy,
flexible terms, providing you             Affordable
convenience and affordability you won't
find anywhere else
Home Improvement loans feature a          Convenient, Saves Time, Easy,
maximum repayment period of 12            Affordable
years
Home Equity Line-of-Credit
Features                                   Benefits
They all feature low rates, low            Flexibility Save money
payments, and easy access
Home Equity Loans can be used for          Flexibility, Options
any need you may have, such as
school tuition, purchasing a new
automobile, home remodeling, the
vacation you’ve been longing for, or
even debt consolidation to pay off
those high interest rate credit cards
You may even qualify for a tax-            Save money
deduction for the interest you pay*
With a Credit Union Home Equity Loan,      Flexibility, Options
your money is at your fingertips
You can write a check or contact your      Convenient, Saves Time, Easy
branch location and have your money
deposited into your account. It is that
simple
Our Home Equity Loans are available        Flexibility, Options
in both Adjustable and Fixed Rate
Programs
Rates are based upon the “Prime Rate”      Save money
and include an added margin based
upon information appearing on your
credit bureau report
Features of these programs include: a      Convenient, Saves Time, Easy,
Draw period ranging from 2-5 years for     Affordable
the Fixed Rate Programs, and 5-7
years for the Adjustable Rate
Programs; Repayment Periods ranging
from 3-15 years for the Fixed Rate
Programs, and 13-15 years for the
Adjustable Rate Programs; Payments
are based upon the amount you
actually borrow; and, for Adjustable
Rate Programs, rates that may change
twice per year in the months of March
and September
You simply decide which program best       Flexibility
suits your needs

*Contact your tax advisor regarding deductibility of interest.

Refer members inquiring about our home Mortgages to the Mortgage
Specialist in your branch.
                 Personal Lending
CashXpress Loan (formally Overdraft Protection Loan)
Features                                  Benefits
Unsecured – No collateral                 Save money, Flexibility
Revolving line of credit – when a         Convenient, Saves time, Easy,
payment is made, that amount, minus       Affordable
the interest, is added to the available
balance of the loan
Credit Life & Disability Insurance        Convenient, Security, Peace of mind
available
Rates based on member’s credit            Flexibility, Options
history
Can use for family vacations, spur of     Convenient, Save money, Saves time,
the moment purchases, or a stash of       Easy
spending money. The options are
limitless.
If you prefer, you can attach             Convenient, Save money, Peace of
CashXpress to your primary checking       mind
account and use it as a safety net for
checks that might not otherwise clear
Terms ranging from 1 - 3 years and        Convenient, Saves time, Easy
rates as low as 10% to qualified
borrowers
Payments are based on the amount          Flexibility
used
Signature Loan
Features                                   Benefits
Unsecured – No collateral                  Save money, Flexibility
Competitive Rates and Terms                Convenient, Saves time, Easy,
                                           Affordable
Credit Life & Disability Insurance         Convenient, Security, Peace of mind
available
Rates based on member’s credit             Flexibility, Options
history
Terms range from 1 year to 5 years.        Convenient, Save money, Saves time,
The five year term is only available if    Easy
member borrows over $5000.



Opportunity to explain product
 Member needs extra cash for a purchase they would like to make.
 Member talks about a vacation they would like to take or a stereo system they
  want to buy but state that they just don’t have the money right now.




Share Loan
Features                                   Benefits
Competitive Rates and Terms                Convenient, Saves Time, Easy,
                                           Affordable
Credit Life & Disability Insurance         Convenient, security, peace of mind
available
Rates based on member’s credit             Flexibility, Options
history
By securing the amount of money you        Convenient, Save money
want to borrow from your available         Saves Time, Easy
funds in your savings account at L&N
we can advance your money at a rate
of 2.5% higher than the highest rate
earned on regular savings accounts
Earns dividends on full savings balance    Earn money
Up to 10 years to pay it off, as long as   Flexibility, Options
your loan payment is at least $25
Certificate Loan
Features                                   Benefits
Competitive Rates and Terms                Convenient, Saves Time, Easy,
                                           Affordable
Credit Life & Disability Insurance         Convenient, security, peace of mind
available
Rates based on member’s credit             Flexibility, Options
history
Allows you to borrow against the           Convenient
money deposited in your CD
Since it is secured by funds on deposit,   Convenient, Saves Time, Easy
it is automatically approved
Rates are based on the rate being          Flexibility, Options
earned on the certificate being used
If you finance less than $10,000 you       Save money, Flexibility
pay a rate of 2% above the rate being
earned on the CD
If you finance $10,000 or more, you        Save money, Flexibility
pay a rate of 1% over the rate being
earned on the CD
The maximum term is 10years as long        Convenient
as your payment is at least $25


Goal Saver Loan
Features                                   Benefits
Unsecured – No collateral                  Save money, Flexibility
Credit Life & Disability Insurance         Convenient, Saves Time, Easy,
available                                  Affordable
Rates based on member’s credit             Convenient, Security, Peace of mind
history
For members having trouble saving          Helpful
money
Money is advanced to a member and          Convenient, Security
deposited into a special account and
reserved until the loan is paid in full
Repayment period of up to 5 years, the     Convenient, Security, Peace of mind
maximum amount that can be
borrowed is $10,000

Opportunity to explain product
 Member complains about their bad credit and how they would like to find a
  way to repair it
 Member may have an event coming up in the future that they need to save for
 Member wants to establish a credit history
             Budgeting Finances
                     CAN YOU BELIVE?
                       With a partner, fill in the following:



On average, teens earn about $5.70 per hour and work

about 15 hours per week, for a weekly paycheck of over $                 .

In 1998, the average teenager earned almost $                   for the year.

The average teen receives $             a week from their parents.

Teenagers in the U.S. spent over $              in 2000.

Teen girls spend about $           per week on average,

while teen boys spend about $               .

A little over 1/3 of teens receive a regular allowance, and about               %

of teens Have a full- or part-time job.

            % of teens have checking accounts.

Almost            % of teens follow a 50/50 plan: half of any money received is

spent, and the other half goes into savings.
                       What is a Budget?
        Tracking money just for the sake of tracking it is pretty meaningless. It
makes a lot more sense to track money when you have a plan for it. That’s the
purpose of a budget (sometimes it’s called a spending/savings plan). A budget
is a plan for managing money during a given period of time. You decide your
goals for your money. The budget becomes your roadmap, showing you how to
reach your goals.
        You decide the length of time you want to use your budget. For now,
though, let’s begin by thinking about it in terms of months.

Money Coming In
        Income is any money coming in. There are many ways you can receive
money. Most people think of income as money earned from a job. But let’s get a
little more creative. Do you receive allowance? You’ve got an income. Did you
get a check on your birthday? That’s income too! Sell some clothes at a garage
sale? You received income.

Money Going Out
       The money you spend on your needs and wants, money going out, is
called expenses. Your expenses typically fall into one of two categories: fixed
and variable.
       Fixed expenses have set dollar amounts and are the exact amount every
time. For your parents, a mortgage payment (house payment) is usually a fixed
amount (For example $750 per month). For you, a car payment might be a fixed
income (For example $200 a month).
       Variable Expenses can change, which mean you usually have more
control over them. You might fill up on gas this week and not buy any next week.
You might go to the movies this week and rent a video next week. Or you might
chose between eating at home or going out to dinner with friends. Although it
sounds like fun, if you are low on cash, you might need to consider eating at
home this time.


P.Y.F. (“Pay Yourself First”)
       P.Y.F. stands for Pay Yourself First, and it’s a very simple, effective idea.
You don’t have a choice about paying taxes. P.Y.F. is the secret to getting what
you want and becoming a disciplined saver. Saving is simply setting aside
money to spend later. It’s the same technique the government uses to collect
income taxes on a regular basis.
       P.Y.F. (pay yourself first) follows this principle on a regular basis. Make it
a regular part of your budget. Think about it as a bill you owe yourself. Why?
Because it’s the P.Y.F. money in your plan that helps you reach your goals. Why
not begin today to save 10%, or just one thin dime, from every dollar you get.
             Create Your Own Budget:
Budget for                              for the month of

Money Coming In:
Work (after taxes)         __________

Gifts/Allowance            __________

Other                      __________

Total Income                                           __________


Money Going Out:

Fixed Expenses
Pay Yourself First         __________

Car Payment                __________

Car Insurance              __________

Other                      __________

Total Fixed Expenses                                   __________

Variable Expenses
Gas                        __________

Food                       __________

Clothing                   __________

Fun Stuff                  ___________

Big Events                 __________

Total Variable Expenses                                __________

Total Outgoing (fixed expenses + variable expenses)    __________



Any Leftover Money?
(Incoming money minus outgoing money)
                 How to Spend Your Money

Express Card
Features                                    Benefits
Access to savings or checking               Convenient, easy access to funds 24
accounts                                    hours a day, 7 days a week
Funds available on STAR network             Convenience of over 20,000 machines
                                            nationwide
Free unlimited usage at all L&N             Save money
machines
First 5 withdrawals on a foreign            Convenient, Save money
machine are free (does not include
other institution charge)
Member of Alliance One                      Convenient, Save money
No monthly fee                              Save money
No surcharge at Republic Banks ATMs         Convenient, Save money
No surcharge at Bank of Kentucky            Convenient, Save money
ATMs
No surcharge at Community Trust Bank        Convenient, Save money
ATMs
Express card transactions come              Convenient, Peace of mind
directly out of the checking account

Terms and Conditions
 $1 ATM usage fee after first 5 foreign withdrawals
 $24 NSF fee
 Up to $1000 POS daily limit
 Up to $500 ATM daily limit
 Express card is free to all members
 When calling for any type of inquiry on photo debit cards, pin changes,
   replacements, etc...specify that it is a photo debit card. The bin #'s for the
   photo debits are different.

Opportunity to explain product
 Member repeatedly comes into the branch to make withdraws
 Member wants more access to their checking account
ATM Card
Features                                Benefits
Access to savings accounts              Convenient, easy access to funds 24
                                        hours a day, 7 days a week
Funds available on STAR network         Convenience of over 20,000 machines
                                        nationwide
Free unlimited usage at all L&N         Save money
machines
First 5 withdrawals on a foreign        Convenient, Save money
machine are free (does not include
other institution charge)
Member of Alliance One                  Convenient, Save money
No surcharge at Republic Banks ATMs     Convenient, Save money
No surcharge at Bank of Kentucky        Convenient, Save money
ATMs
No surcharge at Community Trust Bank    Convenient, Save money
ATMs

Terms and Conditions
 $1 ATM usage fee after first 5 foreign withdrawals
 $5 ATM replacement card fee
 $24 NSF fee
 Up to $200 ATM daily limit for ATM cards
 ATM card is free

Opportunity to explain product
 Member repeatedly comes into the branch to make withdraws
 Member wants more access to their savings account




Check
Features                                Benefits
Access to checking account              Convenient, easy access to funds 24
                                        hours a day, 7 days a week
Can write unlimited amount              Convenient
Free Checks (on certain accounts)       Save money
Safe, have to have a signature          Security
      Cash Management Tools
Overdraft Protection
To protect member’s checking accounts, L&N will add overdraft protection. This
protection is added by allowing any items that would not normally clear to be
paid.
Savings Account: The funds are taken from the savings account and
transferred to the checking account, along with a $2 fee.

Platinum Overdraft: The checking account is allowed to go into a negative
balance to pay a check or debit. Funds can be negative up to $500. There is a
$24 fee each time L&N clears a check or debit causing the account to be
negative.

Cash Express Loan: The funds needed are taken from an open ended loan
and transferred into the checking account. The member pays no fee for this
service. However, they do pay interest on the loan. The member is only
required to make the monthly payment.

Abuse of tools
        If a member were to abuse these services they could have a bounced
check. Checks could bounce, or be returned to the retailer. Instead of L&N
paying the check, L&N will return the check to the retailer. In this case the
member would pay a return check fee of $24 to L&N. The member would also
pay a retailer return check fee, an amount determined by the retailer. The
members debit card could also be declined. This could be an embarrassing
situation for the member if they have abuse their services.
         Savings & Investments
                      Your Money @ Work

                       CAN YOU BELIVE?
                         With a partner, fill in the following:




              % of teenagers pay themselves first when they receive an allowance or

get paid for work.


              % of teenagers usually put savings into a checking or savings

account, while              % put savings into a certificate of deposit, mutual fund

or stocks.


              % of teenagers have sought advice (usually from a parent) on how or

where best to save or invest their money.


Of all young people who are familiar with investing in the stock market,             % are

teenage guys and                   % are saving for a car.


              % of teenagers are saving money for college, and               % are

saving for a car.
                   Saving Vs. Spending
       It’s possible for your money to work for you in two significant ways:
through savings and investments. Many people think saving and investing is the
same thing, but as you learn there’s a world of difference. If you really want to
learn to maximize your dollars, you’ll need to know when to save and when to
choose investing.

         Depending on your goals and the amount of money you have, you could
put it in a savings account, or you could begin to invest it. Understanding when
to save or when to invest is an essential step.

       The big difference between savings and investments is time. Savings is
usually money you set aside for short term goals. One reason you might save
money is so you have some money to invest later. Money that is deposited to a
savings account earns a small amount of money, dividends.

        When you invest, you set your money aside for future income, benefit, or
profit to meet long term goals. When you invest your money, there is no
guarantee that your money will grow or increase. The earnings or losses from
investments are usually more than what you would make or lose in a savings
account. Investors recognize that it usually takes a long time to earn the big
bucks, so most of the time they are in it for the long haul.



                                      Time

                                        is

                                     Money




 1. The more TIME you have to save, the more money you will have at the
 end of the time period.

 2. The more MONEY you have to save, the more money you will have at
 the end of the time period.

 3. The higher the RATE OF INTEREST you can earn, the more money
 you will have at the end of the time period.
         Questions/Comments/Concerns




Additional Resources:

www.lnfcu.com

http://members.cunamutual.com/H2/ResourceCenter.aspx

http://cuna.org/initiatives/youth/savingteen.html


**Portions of this manual were created using information,
graphs, & statistics from National Endowment For Financial
Education.

				
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