Financial Literacy Portfolio By: Anais Torres

Credit cards-

A credit card is a small plastic card issued by a bank, business, etc., allowing the holder to purchase goods or services on credit. Someone can purchase a good such as food, electronics, clothing, etc. Services can also be purchased when someone is doing something for you and you are paying for it. Such as a bus driver, a masseuse, etc. Decisions about credit and loans involve lots of factors, including how much money you need, what terms you’re offered, and who is behind the offer. Credit can also cause lots of problems and become complicated because of interest and band reconciliations.

This is a picture of a credit card.

Comparison Shopping-

Comparison shopping is the practice of comparing prices before shopping in order to get the best deals and pricing on goods and services. Comparison shopping is often done in anticipation of buying expensive items. This can include a TV, Iphone, Washing machine, etc. Sometimes you may need to do some comparison shopping so that you know you are getting the most out of your money. Some products can be much better than others so you need to be very careful to compare them to get the best product for your money.

Bank Reconciliation-

A bank reconciliation statement is a summary of banking and business activity that reconciles someones bank account with its financial records. The statement outlines the deposits, withdrawals, and other activity impacting a bank account for a specific period. A bank reconciliation statement is a useful financial internal control tool used to minimize fraud. A bank rec also helps the checking account holder and the bank be on the same page about what the bank hasn't received or any mistakes the checking account holder has made.

Check Endorsements-

The reason you endorse a check is to either deposit it or to sign it over to someone else. When endorsing a check, you turn the check over, and sign it on the back of the check. You should sign your name exactly the same way it is written on the front of the check.

BLANK ENDORSEMENT - Sign your name the same way it appears on the front of the check. If it is spelled wrong on the front, then sign it again correctly. IMPORTANT - Do not sign your check with a blank endorsement until you are about to either cash or deposit it, otherwise someone else could potentially try to cash your check. Anyone can cash a check once you endorse a check with a blank endorsement.

RESTRICTIVE ENDORSEMENT - This is the safer method to endorse your check and is recommended if you are mailing or someone else is depositing your check. Before signing your check, write a phrase such as "For deposit Only", or "For deposit to account number..." and then sign your same underneath. Then the check may only be deposited to either the bank or to your specific bank account.

SPECIAL ENDORSEMENT - This method allows you to sign your check over to someone else (a third party) who may then deposit it or cash it. Write "Pay to the order of" and then the name of the person you are giving the check to. Then, as above, sign your name underneath. Now you can give your check to that individual.

Investments-

Bonds- When you purchase a bond, you are lending out your money to a company or government. In return, they agree to give you interest on your money and eventually pay you back the amount you lent out. The main attraction of bonds is their relative safety. If you are buying bonds from a stable government, your investment is virtually guaranteed, or risk-free. The safety and stability, however, come at a cost. Because there is little risk, there is little potential return. As a result, the rate of interests on bonds is generally lower than other securities.

Stocks- While bonds provide a steady stream of income, they don't provide much reward. Stocks fluctuate in value on a daily basis. When you buy a stock, you aren't guaranteed anything. Compared to bonds, stocks provide relatively high interest. Of course, there is a price for this high rate: you must assume the risk of losing some or all of your money.

Mutual Funds- A mutual fund is a collection of stocks and bonds. When you buy a mutual fund, you are putting your money with a number of other people investing, which makes you able to pay a professional manager to select specific investments for you. The advantage of a mutual fund is that you can invest your money without the time or the experience that you need to choose an investment that is safe. You should get a better return by giving your money to a professional than you would if you were to choose investments yourself.

Credits:

Created with images by Sean MacEntee - "Beach" • falco - "cheque guarantee card credit card credit cards" • Photographing Travis - "Stock Market Cafe" • roblesse - "business woman phone case"

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