Lý thuyết tài chính - Managing your cash and savings

PFIN4Managing Your Cash and Savings 4Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. GITMAN/ JOEHNK/ BILLINGSLEY2Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1 Understand the role of cash management in the personal financial planning process2 Describe today’s financial services marketplace, both depository and nondepository financial institutions3 Select the checking, savings, electronic banking, and other bank services that meet your needsLEARNING OUTCOMESPFIN4 | CH43Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4 Open and use a checking account5 Calculate the interest earned on your money using compound interest and future value techniques6 Develop a savings strategy that incorporates a variety of savings plansLEARNING OUTCOMES (continued)PFIN4 | CH4Cash Management (Liquid Assets)4Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Routine administration of cash and near-cash resourcesEstablishes savings program that is an important part of personal financial planningPFIN4 | CH4Exhibit 4.15Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Representative Rates of ReturnPFIN4 | CH4Low Interest Rates6Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Have implications for personal finances by creating economic distortionsDiscourage savings and the reduction of debt levelsEncourage investors to search for investments that pay incomePFIN4 | CH4Financial productsChecking and savings accountsCredit cardsLoans and mortgagesInsuranceMutual fundsFinancial servicesFinancial planningSecurities brokerageTax filing and planningEstate planningTrustsRetirementCopyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 7PFIN4 | CH4Financial Products and ServicesTypes of Financial Institutions8Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Depository financial institutionsCommercial banks, savings and loan associations (S&Ls), savings banks, and credit unionsAccept depositsNondepository financial institutionsOther types of financial institutions that offer banking servicesDo not accept depositsPFIN4 | CH4Exhibit 4.39Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Federal Deposit Insurance ProgramsPFIN4 | CH4Checking and Savings Accounts10Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. PFIN4 | CH4Demand depositAccount from which funds can be withdrawn on demand by the account holderTime depositsSavings deposit that remains deposit for a longer time than a demand depositNegotiable order of withdrawal (NOW) accountsChecking account on which the financial institution pays interestHave no legal minimum balanceTypes of Accounts and Funds11Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Money market deposit accounts (MMDAs)Federally insured savings account, offered by banks and other depository institutionsMoney market mutual fund (MMMF)Pools the funds of small investors and purchases high-return, short-term marketable securitiesAsset management account (AMA)Comprehensive deposit account offered by brokerage houses and mutual fundsPFIN4 | CH4Electronic Funds Transfer Systems (EFTSs)12Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Uses latest telecommunications and computer technology to electronically transfer funds into and out of customers’ accountsPFIN4 | CH4Debit Cards and Automated Teller Machines (ATMs)13Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Debit cardsCoded plastic cards used to transfer funds from a customer’s bank account to the recipient’s account to pay for goods or servicesATMsRemote computer terminal that customers of depository institutions can use to make basic transactions 24 hours a day, 7 days a weekPFIN4 | CH4Services Offered by a Bank14Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Preauthorized deposits and paymentsBank-by-phone accountsOnline banking and bill paymentSafe-deposit boxesTrust servicesPFIN4 | CH4Electronic Funds Transfer Act of 197815Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Federal act that describes the rights and responsibilities of an EFTS userUnder the law, one cannot stop payment on a defective or questionable purchasePFIN4 | CH4Maintaining a Checking Account16Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Convenience, services, and cost influence the choice of where to maintain a checking accountChecking account can be an individual or a joint accountOverdraft: Result of writing a check for an amount greater than the current account balanceOverdraft protection: Depository institution automatically pays a check that overdraws the accountPFIN4 | CH4Monthly Statements17Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Itemized listing of all transactions in one’s checking accountAccount reconciliationVerifying the accuracy of one’s checking account balance in relation to the bank’s records as reflected in the bank statementPFIN4 | CH4Types of Checks18Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Cashier’s checkPayable to a third party that is drawn by a bank on itself in exchange for the amount specified and a service feeTraveller's checkSold by financial institutions that can be used for making purchases and exchanged for local currenciesCertified checkPersonal check guaranteed by the bank on which it is drawnPFIN4 | CH4Establishing Savings Program19Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Vital element of personal financial planningDevelop specific saving plan to accumulate fundsConsider risk preferences, period to retain money in deposits, level of interest ratesPFIN4 | CH4Types of Interests20Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Compound interestEarned in each subsequent period is determined by applying the nominal rate of interest to the sum of the initial deposit and the interest earned in each prior periodSimple interestPaid on the initial amount of the depositPFIN4 | CH4Types of Interests21Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Nominal (stated) rate of interestPromised rate of interest paid on a savings deposit or charged on a loanEffective rate of interestAnnual rate of return that is actually earned during the period the funds are heldPFIN4 | CH4Exhibit 4.622Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Magic of CompoundingPFIN4 | CH4Ways to Save23Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Certificates of deposit (CD)Issued by financial institutions in exchange for a depositU.S. Treasury bill (T-bill)Issued at a discount by the U.S. Treasury in its ongoing process of funding the national debtPFIN4 | CH4Ways to Save24Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Series EE bondsIssued in denominations by the U.S. TreasuryI savings bondsIssued at face value by the U.S. Treasury, whose fixed rates provide some inflation protectionPFIN4 | CH425Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Cash managementInternet banksShare draft accountsDeposit insuranceDemand depositTime depositsNegotiable order of withdrawal (NOW) accountsMoney market deposit accountsKEY TERMSMoney market mutual fundAsset management accountElectronic funds transfer systemsAutomated teller machinesCheckbook ledgerOverdraftOverdraft protectionPFIN4 | CH426Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Stop paymentAccount reconciliationCashier’s checkTraveler’s checksCertified checkTime depositsCompound interestNominal (stated) rate of interestEffective rate of interestKEY TERMSCertificate of depositU.S. Treasury billSeries EE bondsI savings bondsPFIN4 | CH427Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. SUMMARYCash management involves managing liquid assets which can be either held in cash or can be readily converted into cash with little or no loss in valueFinancial services industry is evolving due to technological advancement and changing regulationsMenu of cash management products helps in comparing different cash products and services offered by various financial institutionsPFIN4 | CH4