Credit Union National Association | CUNA



|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 quarterly |Earn money |

|Statements mailed quarterly |Easy, Convenient |

|Payroll deduction/direct deposit available |Convenient, Security, Peace of mind |

|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 quarterly |Earn money |

|There are mailings and planned events just for them |Helps them to become involved with 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 quarterly |Earn money |

|Statements mailed quarterly |Easy, Convenient |

|Payroll deduction/direct deposit available |Convenient, Security, Peace of mind |

|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 machines and no surcharge at|Save money, Convenient |

|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 below $2000, $10/month service |Earn money |

|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 machines and no surcharge at|Save money, Convenient |

|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 machines and no surcharge at|Save money, Convenient |

|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 machines and no surcharge at all |Save money, Convenient |

|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 below $2000, $10/month service |Earn money |

|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 machines and no surcharge at|Save money, Convenient |

|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 conditions) |Earn money |

|Dividends compounded daily and paid quarterly or monthly (91 day |Earn money |

|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 plentiful |Save money, Convenient |

|Rates and Terms are based upon the Model Year of the vehicle |Save money, Convenient |

|being purchased and the member's credit history | |

|We generally finance up to the retail value of a vehicle as |Save money, Convenient |

|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 eligible members, Mechanical|Security, Peace of Mind |

|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 will take you through the |Convenient, Easy |

|sequence, step-by-step, and provide useful assistance for every | |

|aspect of the home-buying process | |

|This program has no discount points, no origination fee, reduced |Save money |

|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 purchase up to $125,000 |Convenient |

|Available in Fixed Rate and Adjustable Rate versions that allow |Affordable, Convenient |

|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 Rate First Mortgage Loan, |Flexibility, Options |

|Adjustable Rate First Mortgage Loan, or our Balloon Mortgage Loan| |

|Plans include 10, 15, 20, and 30 year terms |Flexibility, Options |

Second Mortgages

|Features |Benefits |

|Great for consolidating debt, making home repairs, and many other|Save money, Flexibility, Convenient |

|purposes | |

|Can get a Second Mortgage at a great fixed rate for up to 15 |Convenient, Save money |

|years | |

|Special rate offered to members who take advantage of our 5-year |Convenient, Save money |

|term Second Mortgage | |

|We will loan up to 100% of the appraised value of your home, you |Convenient, Affordable, Secure |

|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 processed in as little as 1 week. |Quick, Convenient, Save money |

|As a result, you could have your money in as little as 2 weeks | |

|This one-time loan offers low rates and flexible terms, providing|Convenient, Saves Time, Easy, Affordable |

|you convenience and affordability you won't find anywhere else | |

|Home Improvement loans feature a maximum repayment period of 12 |Convenient, Saves Time, Easy, Affordable |

|years | |

Home Equity Line-of-Credit

|Features |Benefits |

|They all feature low rates, low payments, and easy access |Flexibility Save money |

|Home Equity Loans can be used for any need you may have, such as |Flexibility, Options |

|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-deduction for the interest you |Save money |

|pay* | |

|With a Credit Union Home Equity Loan, your money is at your |Flexibility, Options |

|fingertips | |

|You can write a check or contact your branch location and have |Convenient, Saves Time, Easy |

|your money deposited into your account. It is that simple | |

|Our Home Equity Loans are available in both Adjustable and Fixed |Flexibility, Options |

|Rate Programs | |

|Rates are based upon the “Prime Rate” and include an added margin|Save money |

|based upon information appearing on your credit bureau report | |

|Features of these programs include: a Draw period ranging from |Convenient, Saves Time, Easy, Affordable |

|2-5 years for 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 suits your needs |Flexibility |

*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 payment is made, that amount, |Convenient, Saves time, Easy, Affordable |

|minus the interest, is added to the available balance of the loan| |

|Credit Life & Disability Insurance available |Convenient, Security, Peace of mind |

|Rates based on member’s credit history |Flexibility, Options |

|Can use for family vacations, spur of the moment purchases, or a |Convenient, Save money, Saves time, Easy |

|stash of spending money. The options are limitless. | |

|If you prefer, you can attach CashXpress to your primary checking|Convenient, Save money, Peace of mind |

|account and use it as a safety net for checks that might not | |

|otherwise clear | |

|Terms ranging from 1 - 3 years and rates as low as 10% to |Convenient, Saves time, Easy |

|qualified borrowers | |

|Payments are based on the amount used |Flexibility |

Signature Loan

|Features |Benefits |

|Unsecured – No collateral |Save money, Flexibility |

|Competitive Rates and Terms |Convenient, Saves time, Easy, Affordable |

|Credit Life & Disability Insurance available |Convenient, Security, Peace of mind |

|Rates based on member’s credit history |Flexibility, Options |

|Terms range from 1 year to 5 years. The five year term is only |Convenient, Save money, Saves time, Easy |

|available if 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 available |Convenient, security, peace of mind |

|Rates based on member’s credit history |Flexibility, Options |

|By securing the amount of money you want to borrow from your |Convenient, Save money |

|available funds in your savings account at L&N we can advance |Saves Time, Easy |

|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 your loan payment is at |Flexibility, Options |

|least $25 | |

Certificate Loan

|Features |Benefits |

|Competitive Rates and Terms |Convenient, Saves Time, Easy, Affordable |

|Credit Life & Disability Insurance available |Convenient, security, peace of mind |

|Rates based on member’s credit history |Flexibility, Options |

|Allows you to borrow against the money deposited in your CD |Convenient |

|Since it is secured by funds on deposit, it is automatically |Convenient, Saves Time, Easy |

|approved | |

|Rates are based on the rate being earned on the certificate being|Flexibility, Options |

|used | |

|If you finance less than $10,000 you pay a rate of 2% above the |Save money, Flexibility |

|rate being earned on the CD | |

|If you finance $10,000 or more, you pay a rate of 1% over the |Save money, Flexibility |

|rate being earned on the CD | |

|The maximum term is 10years as long as your payment is at least |Convenient |

|$25 | |

Goal Saver Loan

|Features |Benefits |

|Unsecured – No collateral |Save money, Flexibility |

|Credit Life & Disability Insurance available |Convenient, Saves Time, Easy, Affordable |

|Rates based on member’s credit history |Convenient, Security, Peace of mind |

|For members having trouble saving money |Helpful |

|Money is advanced to a member and deposited into a special |Convenient, Security |

|account and reserved until the loan is paid in full | |

|Repayment period of up to 5 years, the maximum amount that can be|Convenient, Security, Peace of mind |

|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:

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:

How to Spend Your Money

Express Card

|Features |Benefits |

|Access to savings or checking 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 machines |Save money |

|First 5 withdrawals on a foreign machine are free (does not |Convenient, Save money |

|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 ATMs |Convenient, Save money |

|No surcharge at Community Trust Bank ATMs |Convenient, Save money |

|Express card transactions come directly out of the checking |Convenient, Peace of mind |

|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 machines |Save money |

|First 5 withdrawals on a foreign machine are free (does not |Convenient, Save money |

|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 ATMs |Convenient, Save money |

|No surcharge at Community Trust Bank ATMs |Convenient, Save money |

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:

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.

Questions/Comments/Concerns

Additional Resources:







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

-----------------------

[pic]

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.

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)

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.

% 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.

................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download