MONEY & BANKING San Francisco State University OFFICE OF INTERNATIONAL PROGRAMS Agenda Type of money - Protecting your money - How to write a check Selecting a bank - Common products and services - General Account Opening Requirements Credit History Protecting your financial assets Bills & Coins Paper money (also called “bills”) comes in denominations of: $1, $5, $10, $20, $50, $100, $500 & $1,000 All paper money is almost the same size, color & similar design so be careful & don’t be confused! Bills & Coins Currency in the form of coins is also called “change”. Coins come in denominations of: 0ne cent (penny) Five cents (nickel) Ten cents (dime) Twenty-five cents (quarter) Fifty cents (half-dollar) One dollar coins (Susan B. Anthony; Silver Dollar) Plastic money Credit Cards Visa, MasterCard, Discover, American Express Card. Debit Cards/Check Cards Can be used like credit cards, but funds are withdrawn directly from the your checking account. ATM (Automated Teller Machine) Card Use ATM card to withdraw cash. Beware of extra fees. Protecting Your Money Carry small denominations ($1, $5, $10 or $20 bills) and a small amount of cash needed for daily expenses. Many stores may not be able to make change for $100 or even $50. Keeping large amounts of cash at home or in your wallet can be dangerous! How do I pay…… Pay by personal checks – Tuition, rent, utilities or telephone bills Pay by credit cards or debit cards – Tuition, books, groceries, clothes, and other expenses Pay by cash – Breakfast or lunch, movie tickets, public transportation, gasoline….etc. How do I pay…… Online Payment Many banks, cell phone companies, & credit cards offer FREE online payment (E-payment) option. You can pay your bills anytime anywhere if you have reliable and secure internet access. BEWARE: Banks will NEVER ask you to enter personal data via an email. Go directly to the bank’s website. How to write a check….. Open a checking account at your bank’s “new accounts” desk The bank official will help you to select a checking account that is best for you You can either order checks through your bank or on-line (may be less expensive) Ask the bank official to show you how to write a check, record it in your checkbook, & balance your account each month How to write a check… Use checks or credit card (not cash) to pay for rent, tuition, groceries, textbooks, etc. Make sure you have enough funds in your account to cover the checks you’ve written! Review your monthly bank statement for accuracy How to write a check… 1. Make sure your name and current local U.S. address are printed in the upper left corner 2. Print the date in the upper right corner 3. In the “Pay to the order of” section, print the name of the store or person you are paying How to write a check… 4. Print the amount of the check in the space/box to the right (i.e. $19.95) 5. Write the amount in the line below (i.e. nineteen and 95/100 dollars) 6. In the space in lower left corner, you can write a reminder to yourself what you bought (i.e. textbook) How to write a check… 7. Sign your name in the lower right corner Record the check number, date, amount and purchase in your checkbook Always keep an accurate balance of your account in your checkbook Never write a check for more money than you have in your account! How to write a check… Keep a record of the money that is left in your account (called the “balance”) If you don’t, have enough money in your account, your check may “bounce” and you will need to pay a penalty to both your bank and the store to whom you wrote the check! Selecting A Bank - Select a bank that is conveniently located either close to SFSU or to your home. - Choose a bank with many branches. - Select a large international bank if transferring large amounts of money between your home country & the U.S. - Keep in mind that banks may only be open limited hours on Saturdays and not at all on Sundays. Selecting A Bank…… Recommendations Include: Bank of America CitiBank Washington Mutual Wells Fargo Bank Common Products & Services Checking – FREE or with monthly charge. Usually no interest. Saving – Sometimes has monthly charge and interest. Credit Services Investment Services Common Products & Services International & domestic fund wire transfers, bank draft, Travelers Checks, etc. ATM (Automated teller machine) card and debit card. Safe deposit boxes. On-Line access, 24-Hour phone services. On-Line bill pay. How to choose services and products? - Ask for student banking information: Many banks offer special promotion for students. Check out bank web sites, or obtain the information from customer services. Compare the products and services. How to choose services and products? - - Do not let the bank representative push you to purchase investment services if you are not ready to invest. Some banks might offer you debit card or credit cards. Consider taking advantage of these because you can start building credit history in the U.S.! General Account Opening Requirements Two Pieces of Identification (ID) Are Required Such As : Valid Passport Student ID with Photo State Driver’s License or ID Card Major Credit Card Social Security Number (if available) Bank Reference (if available) Credit History Your purchasing and payment habits are tracked by your bank, credit card companies, department stores, and other creditors and reported to credit bureaus. If you would like to make a big purchase in the future (For example, a car), the lenders can decide whether they want to take the risk of lending you money for your car purchase. Things to Know About Establishing Credit History in the U.S.: Maintain a good payment record. Payments are usually due monthly. Financial institutions look for credit history over the past 7 years. A secured credit card is a good way to get started. Try to obtain a credit card from a department store (Macy’s, Target, Best Buy, etc.) as they are usually easier to qualify for. Protecting Your Financial Assets Report any lost or stolen checks, debit/credit cards or ATM cards immediately to your bank. Check your monthly statement carefullybalance and update your checkbook. Notify your bank if you are expecting funds to be transferred into your account. Protecting Your Financial Assets Dispose of your monthly financial statement carefully. Be careful of Identity Theft! Don’t Give Personal Information such as your Mother’s maiden name, social security number, birth date/place, etc. to strangers. The End Be Careful With Your Money!