Spring Financial Handbook

Youth Student Guide 14x18 2.indd 1 4/29/13 9:42 AM

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A little guidance makes a BIG difference. Our Financial guide offers you all the right tools to help you make it BIG out of little.

Youth Student Guide 14x18 2.indd 2-3 4/29/13 9:42 AM

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Contents

Chapter 1 What’s a Budget Anyway

Chapter 2 Meet Your Current Account

Chapter 3 Savings 101 + 1 + 2 + ...(you get the point).

Chapter 4 21st Century Style Banking

Chapter 5 Everything You Wanted To Know About The Payment Card But Were Afraid to Ask

Chapter 6 Intro to Planning and Paying for College

Chapter 7The Banking Sector

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The Big Picture

A budget is a way to track the money you have (or income) and what you spend (expenses). Writing down (or typing, for the tech freaks out there) your monthly income and expenses lets you see the big picture and spend your money wisely, which is definitely better than being broke at home while everyone is out partying.A word to the wise, it’s easy to start a budget but it takes discipline (no one likes that, but you gotta do what you gotta do!) to stick with it. The first, second and third rules of budgeting are… spend less than you earn.

Chapter 1 What’s a Budget Anyway

Contrary to popular belief, budgeting does not mean you have to stay at home and forget about having a life, it just means that you have to spend smart by looking for less expensive alternatives and not getting carried away on a night out or a shopping spree.

The key here is planning… so if you have an upcoming trip that you would like to go on, start adjusting your budget to make it happen.

Step 1: Show Me The Money… And Where It’s Coming From.

Estimate how much you are making, that includes your salary from a part-time job, monthly/weekly allowance, birthday money (hope grandma was generous this year), etc., it’s all income.On the other hand, you will need to keep track of all your expenses, every gift, every food purchase, everything you pay money for (that’s where discipline comes in). Once you have all that written down, it’s time to separate your fixed and variable bills. Car payments, phone bills, and rent are considered fixed bills. In other words, they are bills that must be paid on a monthly or weekly basis. Variable bills include dining out, entertainment and clothes.

The rest is easy… just follow these steps:

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Step 2: Show Me Where The Money Is Going!

How many times have you thought to yourself “what?! Only three dollars left?! Where did all the money go?”

Knowing where the money is going will help you realize where you are overspending and need to cut down.Once you have all your expenses on paper, calculate what your monthly income is. If it is random, take an average (remember it’s always better to underestimate than overestimate the money coming in) and make sure to include any extra money you make on the side.

Step 3: So How Much Can I Spend Anyway?Now that you have all the income and expenses information, subtract your total expenses from your total income and if the number you are left with is positive, congratulations! You are spending less than you are making! If your number is negative, hard luck, but at least you can now figure out your spending habits and transform the negative number to a positive one.

Before buying anything ask yourself this four-word question “Do I need it?” (We know it’s hard, but you can do it!)

To avoid this ever happening again list down your purchases on your Smartphone or a piece of paper (for those who prefer to keep it low tech).

Step 4: Tricks To Stick With It

The surest way to lose track of your budget is to say “I’ll pay it next paycheck”...

9 out of 10 times that won’t happen! In no time you will find that you have dug yourself a hole that even Maxime Chaaya will have trouble climbing out of (and you know he can climb!)

Make sure you save at least 10% of the money you make. A great trick to do so is to divide the month into 5 weeks.

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Go confidently in the direction of your dreams. Live the life you have imagined.Henry David Thoreau


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Chapter 2Meet Your Current Account

What’s The Big Idea?

Your current account (A.K.A convenience account, and more famously, the account-I-use-everyday) can be found at any bank or other financial institutions. The money in a current account is very liquid (not the water kind) and can be withdrawn at the branch counter, by cheques, ATM and electronic debit cards.

What’s The Difference Anyway?

The difference between a current account and other bank accounts is the fact that you can withdraw money as many times as you wish (but don’t get carried away) and deposit money as much as you want (get carried away). A savings account on the other hand sometimes limits both.

Current accounts are also known as business accounts, student accounts and joint accounts, but whatever the name is, they all offer similar features.

And The Benefits Are…

SafetyIt’s simply safer to carry and pay by payment cards because unlike cash, they cannot be spent by anyone and are traceable. Plus (and that is a big plus) the bank pays you interest to keep your money there.

Convenience You can send, receive and spend your money without carrying cash (and worrying about it), you can also pay your bills and monthly payments like the PC, LCD, mobile, electricity, internet and credit cards without having to go in person, get stuck in traffic and stand in line (that’s a pretty sweet deal).

Budgeting Your MoneyIf you’re not keeping a record of your expenses and income, your current account will (think of it as your personal note taker).

Tracking Your MoneyOnline banking services, such as Internet, phone and mobile banking enable you to check your account savings, expenditures and balance any time you feel like it.

UbiquityThat’s just a fancy word for “you withdraw your money here or abroad through payment card or cheques.”


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Who Should, Would, Could Open a Current Account?Anyone who is 18 years old and above and would like to simplify his or her financial life.

Opening a Current Account in Three Easy Steps: Visit the branchHave a copy of ID or PassportFill all the required documents

Always remember, a balanced current account will make managing it easier.

Good habits formed at youth make all the difference.Aristotle


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Chapter 3 Chapter 3: Savings 101 + 1 + 2 +… (you get the point).

Different people save for different reasons, some are responsible and want to be prepared for life’s unexpected turns and some just want to buy that new 50-inch HDTV (or as it is better known 127 cm of perfect picture) with all the gadgets and add-ons. Whatever your reason is, all you need to know is, it’s never too late to start saving and it requires you to analyze, plan, organize and evaluate (who said buying a TV was irresponsible!)

Pay yourself first!

Start Saving Here

Step 1 Keep an eye on your account; the lower the numbers, the more important it is to start saving.

Step 2 Set long-term (car) and short-term (mobile bill) goals to make it easier for you to decide which amount goes where.

Step 3 Track your expenses for an entire month, if you are buying more “nice-to-haves” than “must-haves”, you may have to make a “savings sacrifice” until you get back on track.

Step 4 Save something (anything… no amount is too small) every month and you will slowly but surely build an «emergency» fund (some consider the HDTV an emergency, just sayin’!).

Step 5 It doesn’t make much sense to put money into emergency savings if you are carrying debt. So pay down your debt first.


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Did You Say Savings Account?

A savings account is also known as the ‘rainy day account’ (or the buy-a-ticket-to-a-sunny-island-somewhere-exotic account).

When choosing a savings account, always remember:

Generally, the less access you have to your money after depositing it, the higher the interest rate (which means more money for you).

Always read the fine print and make sure the terms and conditions suit you. Watch out for interest penalties, fees or if there is a limit to the number of transactions you can make.

To recap, what is a savings account and why should you have one?

A savings account or deposit account (as some like to call it) is an account provided by the bank (in all major currencies) that allows you to deposit money and earn interest over a certain period of time (to be used at a later date, but for now you’ll just have to be patient).

Types of Savings Accounts? Sight Deposit Account: Where you can keep the money you’re saving with the possibility of withdrawing it any time without notice.

Term Deposit Savings Account: Where you can ask the bank to block a certain amount of your deposits over a certain period of time.

The only thing to do with good advice is pass it on. It is never any use to oneself.Oscar Wilde


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Savings Account With Benefits

1. SafetyInstead of keeping your cash under your mattress where it can’t make more money (bankers call it ‘earning interest’) and where you have to worry about it getting stolen or going up in smoke, try keeping it at the bank for a change (FYI banks also have fireproof safes)

2. Emergency FundsA savings account is the best way to set aside a ‘rainy day fund’, money that may be needed in case of emergency or unexpected expenses.

3. InterestAnother benefit of a savings account is that the bank pays individual interest. In other (more fun) words, the bank pays you for giving it business (yeah, you read that right).

4. Automatic TransferYou can set up an automatic money transfer from you checking to your savings account; in other words, the bank will remove an amount of money from your checking account (you decide how much) and put it in your savings account (it makes saving easier).

5. Tracking Your Money Internet banking, mobile banking and phone banking allow you to keep track of how much money you are saving in your savings account.

Who Should Open A Savings Account?People who need to save up some money for a specific thinglike a future vacation, a dream car, etc.

Open A Savings Account In 1,2,3…Visit the branch

Have a copy of ID or Passport

Fill out all the required documents

A priceless piece of advice: Did you know if you save $5 a day for 5 years, you’ll have $9,130... that’s like cutting on a few cans of soft drink a day.


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Chapter 4 21st Century Style Banking First, It’s Beyond Convenient

Open 24 hours a day, 7 days a week, accessible from your PC or laptop, anywhere in the country or the world and whenever you want. Online banking is very liberating. Having said that, for cash withdrawals you may have to walk a few blocks to your nearest ATM (it’s good to exercise, that’s not a banking tip but we care).

Second, It’s Fast, Efficient and Effective (it’s like the superman of banking) What traditional banking can do in an hour, online banking can do in minutes.

With just a few clicks you can:

Manage your checking account from a secure site.Check your account balances and keep an eye on recent transactions, as often as you like. Transfer money between your accounts.Check online statements.

Now ask yourself would you rather drive to the bank, get stuck in traffic, look for a parking spot, find a parking spot, park your car and stand in line to transfer money from your checking to your savings account OR just walk to your living room, turn on your PC, log in to your account and transfer your money?

What is Online Banking?

Like most people, you’ve probably heard about online banking but haven’t tried it yourself. When you do, you’ll realize there is no quicker nor more efficient way to transfer money, settle cards payments and manage your finances without the time-consuming (and not-exactly-fun) aspects of traditional banking from the comfort of your own PC or laptop.


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Mobile Banking Is “Anywhere” BankingWhether you’re on the go (from one class/meeting to another, travels, etc.), or on the slow (from one end of the pool or ski slope to another), you can now access your bank account anywhere.

Banks who offer mobile access support some or all of the following services:

Account Balance EnquiryAccount Statement EnquiriesCheque Status Enquiry Cheque Book Requests Fund Transfer between AccountsRecent Transaction History Requests Information Requests like Interest Rates/Exchange Rates

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Precious advice If you lose your phone, report it to your bank instantly.

Priceless advice: The best thing to do with your money is put it into a savings account or you can carry it around, stress about it and risk losing it or having it stolen… It’s not exactly a tough choice.


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Chapter 5Everything You Wanted To Know About The Payment Card But Were Afraid to Ask

What Is A Payment Card And How Many Kinds Are There?

A payment card is any electronic plastic card that allows you to make purchases using your plastic instead of cash. It’s convenient, quick and most importantly it’s safe.

There are generally 3 types of cards:

Debit Card Spend Now & Pay Directly Credit Card Spend Now & Pay Later Prepaid Card Pay Now & Spend Later

Why Use Plastic Instead Of Cash?

Because it’s safer. Need we say more?

Ok. Here Goes Why Plastic Is Safer…

You can keep track of your spending by checking your monthly statements. It’s as fast and convenient as cash without the hassle. Why carry cash around and be weighed down by all the stress?If it’s stolen or lost, banks have increasingly sophisticated safeguards to deactivate your card and you can reclaim any fraudulent purchases, if you lose cash on the other hand… forget about it.

Now. Why Plastic Is Better…

You can build a credit history - using a credit card wisely is one of the best ways to establish good credit. This can be beneficial when you wish to apply for a loan or other consumer lending products. You can make online purchases or hotel booking, car rentals and make any other kind of online reservation. You can keep track of your purchases. Extra Rewards/Benefits - through loyalty programs, etc. Instant Cash Availability - payment cards are very handy to have for unexpected emergencies such as car repairs or unexpected expenses. A credit card can be a source of cash when no other source is available.

Valuable advice Sign up for SMS alerts.

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Is there a payment card that allows me to use my own money without having to take a loan from the bank? Yes there is, it’s called a Debit Card, what this card does is provide you with a direct link to your personal bank account. You will be able to spend your own money without the need to take a loan from the bank. The logic is simple; you can use the card as long as there is money in your bank account.

Is there a payment card that allows me to use my own money without the need to open a bank account? Yes, it is called a prepaid card, which allows you to load the card with your own money and the amount of your choice and use it anywhere in the world… and it is reloadable.

Is there a card that allows me to choose the percentage of the amount to be settled at the end of each month? Yes, bankers call that a credit card, it provides you with a pre-determined line of credit and the flexibility to choose how you would like to settle your minimum monthly due, starting with a percentage as low as 10% or go up to 20%, 30%, 50% or 100%. You can always choose to pay your full balance at the end of the month and avoid being charged with interest.

Is there a card that allows me to pay my bills in equal installments? Yes, it’s known as an installment card and provides you with the flexibility to settle your bills and repay it in equal monthly installments at either a 0% or a very low interest rate.

What is the difference between debit and credit cards? Debit cards directly subtract the money you spend from you personal account, while a credit card uses the bank’s money, which you have to return later.

What is the difference between credit and charge cards? The difference is the way you choose to settle your bill. A credit card gives you an option to settle your bills at 10%, 20%, 30%, 50% or even 100% (in exchange for a small interest), while with a charge card you fully settle your bill at the end of each month (without paying any interest).

What is the difference between prepaid and debit cards? A debit card is usually linked to your bank account, whereas with a prepaid card you don’t need to open a bank account.

What are the main payment card brands?The three names you need to know are Visa, MasterCard and American Express.

What is the difference between Visa and MasterCard?There is not much difference between Visa and MasterCard; they are both payment systems that enable and rely on banks to issue the credit cards you hold.

What does ‘payment card validity’ mean? It’s basically the expiry date found on the front of your card; you’ll find it right after “valid thru” or “active thru”.

What is a supplementary card and how can I get one?A supplementary card is an additional card offered by the basic cardholder to direct family members or friends and where the 2 cardholders share the same limit assigned to them. Now that’s nice!

What is a “line of credit” or “card limit”?It’s the maximum you can spend on your card. Each time you repay some of what you spend, the limit is refreshed and available for your disposal (but dispose of it wisely).

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What is a credit card statement?It’s the invoice that the bank sends you at the end of each period. It lists all transactions made on your card during that period; it also calculates your outstanding balance, as well as your available limit and the minimum amount you should pay on or before the due date.

What is a due date?The due date is the day by which you should be settling at least the minimum due amount. Once this date has passed, the interest starts to go up. So we recommend you do one of two things once your due date is up:

Settle the minimum due or bigger amount, while the remaining amount is spread over several installments (with interest).Reimburse the total amount spent with no interest or additional charges.

What is a minimum due?It is the minimum amount that you need to settle to the bank by the due date.

What is a grace period?The grace period is the period of time between your statement date and the due date. This period may vary depending on the transaction date.

What is an interest rate Or APR (Annual Percentage Rate)? There is no way to simplify this, so here it goes…

If you settle your charges before the due date, interest applies on the unpaid portion of your charges.

It is important to understand how interest rates are calculated on your credit card account:

All your purchases are noted on your card statement. Each statement reminds you of your minimum due amount and due date.The full minimum due amount must be settled, within the grace period.The remaining amount will be subject to the addition of monthly interest, calculated from the date of the transaction till the date of full repayment.Settlement of previous interest and fees take priority over settlement of other transactions.

And that’s as clear as it will ever get!

How are the monthly bills settled on a payment, credit or charge card? Card bills are usually domiciliated on your account and by the due date, the amount due is automatically deducted from it.

Don’t spend your coins (just because you don’t like it when they jiggle in your pocket), use them for park meters.

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Where can I use my card?You can use your card at any POS (Point Of Sale, which is a payment machine that is available at most retail outlets) locally or internationally as long as they accept Visa, MasterCard, American Express or the card brand you are carrying. You can also withdraw money from ATMs (Automated Teller Machines).

What is an ATM?An ATM (Automated Teller Machine) is a computerized telecommunication machine that provides you with 24/7 access to your money in a public space without the need for a cashier, human clerk or bank teller.

How to use an ATM?Be alert. As you approach the ATM, look around for other people. If it is dark, pick an ATM in a well-lit location. If you are uncomfortable with the area or the people around the machine, find a different machine or use it later.Insert your ATM card into the machine.Select a language Enter your PIN (Personal Identification Number), then press Enter. Make sure you enter the correct pin.Select a transactionChoose whether to do an additional transaction.Choose whether you want a receipt, select Yes or No. Take the receipt if you requested it.Wait while the system processes your transaction(s). When the machine beeps at you, take your card, cash and receipt (if you asked for one). Always make sure that you have both your cash and your card.

How to use my card online?Choose a secure site. Choose what you want to buy on the Internet.Enter the card number written on the front of the card.Enter your CVC (Card Validation Code) if you are using MasterCard card or your CVV (Card Verification Value) if you are using Visa card (if requested). This is basically the three-digit number on the back of your card.

If my card is in Dollars, can I purchase items in other currencies? Yes, you can. All transactions made in non-USD currency will be converted to USD. Your statement will show both the USD amount and the non-USD amount in which the charge was made in.

Can I use my credit card to withdraw cash? Yes, you can. Depending on the card brand, you can use any ATM displaying your card brand logo to withdraw cash.

How do I know which ATMs accept my card? Look for the MasterCard or Visa logo (depending on which card brand you have) on the ATM you want to withdraw money from.


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What is card fraud?It’s basically when your card is lost or stolen and your account information (name, account number, verification code, expiration date) is used by the thief (we have to keep it polite here) to go on a shopping spree with your money. Card fraud is not fun!

How do I protect myself against fraud?Keep your PIN number OUT of your wallet and don’t give it to anyone.Do not send your credit card number by email. Hackers can easily read them.Avoid online purchases and transactions on public computers (and that means internet cafes, office computers, etc.). It is safer to use a home-based computer. Ensure you keep your virus software up to date. Check your card statements and reconcile the transactions against receipts. It is also a good idea to check your card statement online during the month to pick up any strange transactions. When paying in a restaurant, pub or club, keep your eye on your card at all times. Always remember banks and credit card companies will NEVER call or send you an email asking for your banking details (and that is especially true about credit card numbers).

How do I shop securely online?Use a secure connection The most important thing to look for when paying with a credit card online is the padlock at the bottom of your browser. If the padlock is broken, DO NOT trust the site with your card information. Just so we are clear… a site with a broken padlock means you “can’t trust me”.

Buy from well-known stores Almost all businesses have websites these days and you should be able to buy whatever you are looking for at the official brand website at a good price. If you find that the product you want is cheaper or only available on an unknown site, check that they have contact details on their website. If there is no way of contacting the company other than on the web, don’t make a purchase. If they’re happy to take your money without giving you appropriate and verifiable contact information, it’s a big red flag. Make a note of what you order Check payment and delivery details and read the terms and conditions carefully.

What do I do if someone else has used my credit card or obtained a credit in my name without my authorization? In case of credit card misuse you need to submit a credit card dispute.

What is a credit card dispute? These are the steps you take to dispute a credit card transaction that you believe was not made by you. Any dispute should be submitted within 90 days of the date that appears on the transaction statement or receipt.

If your card is lost or stolen, you need to report it immediately by calling your bank’s hotline. Some recommendations for better use of your payment card:Keep your card in a safe place. Never leave it in your car, on your desk, or in a public place!Don’t forget to sign the back of your card upon receipt. Keep your card in sight when paying at a POS. Always keep a copy of the ticket after payment (and that doesn’t mean until you reach the closest garbage bin), to reconcile with your statement.


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Always check your card statement(s), your bank expects you to report any irregularities in the quickest delays (to help them help you). Note and remember your bank’s help desk number. There is always someone there to help you in case of card loss. Make sure that the merchant accepts your card. You can do that by checking the stickers displayed on the shop’s window (MasterCard, Visa, American Express, etc.). Open any credit card bill as soon as it arrives, check it thoroughly against your receipts and reconcile the account. If a charge appears suspicious or unknown to you, challenge it immediately by phoning your card issuer or your bank and then follow up the call with a written enquiry. When you speak to someone at the bank, ask for their name and make a note of it. Talking to the same person can make it easier and faster.If you change your address, notify your credit card issuers in advance of your change of address and keep a copy of that notification. If an error should occur you want to have proof that you did notify them on time. If you notice anything suspicious about your card, notify your issuer immediately. Use your card only for purchases and pay your entire card balance each month by the due date to avoid interest charges. This is a great way to help establish a good credit history. If you can’t pay the full balance, at least pay the minimum payment, plus as much of the remaining balance as possible.

Looking to make some extra cash? Instead of ending up in the trash, old university books can be sold or exchanged for new books.

Find a hobby you like and which could potentially make you money. So if you like Remote Control cars (Girls may prefer makeup or hairstyling), you can charge for it.

You are only young once, and if you work it right, once is enough.Joe Lewis


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Chapter 6Intro to Planning and Paying for College

To make financial planning easier, follow these simple steps

Step 1 Calculate the total cost of your education by adding all expenses such as tuition, fees, books, supplies, living costs and personal expenses.

Step 2 Once you know how much it’s going to cost you, apply for financial aid support by filling out an application. Financial aid comes in many shapes and forms some of which are student loans, work-study programs, scholarships and grants. Unlike student loans, scholarships and fellowships do not have to be repaid. Many scholarships and fellowships are awarded each year to students with special qualifications such as academic, athletic or artistic talent.

Step 3 Review the financial aid package given to you by your adviser and based on your needs.

Step 4 Set up a budget that includes all costs and available funds for the academic year.

Step 5 Determine if you will need additional resources and how much you can borrow in student loans.

Applying for a personal loan with a qualified co-signer helps in getting the best deals.


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Types of FundingWhat are the types of funding available to help pay for college?

Free Money (and you thought that didn’t exist)Scholarships and grants are free money since you do not have to pay them back. Scholarships are awarded to students with big achievements, whereas grants are given to students based on their needs.

Affordable Funding The work-study program provides jobs for students with financial needs.

Loans “Student loans” is borrowed money that has to be repaid with interest.

Ways You Can Make Money In CollegeGet a job There are plenty of places on, or near your campus that will hire college students and because of that you can expect them to adapt to your study schedule and even your time off from school (enjoy it while it lasts… real life bosses aren’t that flexible). Be a tutor If you excel at any subject, set up your own tutoring service and charge for it. You can also offer tutoring sessions online via chat rooms (Geek alert? Maybe. Rich? Certainly).

Get into a paid internship or a work-study program If you qualify you can earn money and college credit at the same time (two angry birds with one stone).

Take Odd Jobs Let friends and family know you are available to cut the grass, house/pet/baby sit, do light housework (you don’t want to exert yourself) plant flowers, whatever they need. You can make a pretty penny (or in Lebanon’s case a Lovely Lebanese Lira) while being your own boss.

Go confidently in the direction of your dreams. Live the life you have imagined.Henry David Thoreau


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Be a “Fixer-Upper!”If you can repair computers, leaky faucets, drafty windows, make-up, hair, heels, or anything else that needs fixing up… you can make money doing it for others (and save even more fixing your own stuff).

Offer to be your professor’s assistantSome departments will hire students to assist professors in grading papers, making photocopies, doing research, etc.

Look for on-campus jobs One of the biggest and best ways to make money in college is to look for an on-campus job. Check out the library or other university department. Many of these jobs come with discounted tuition so they are snapped up quickly. If you can’t manage to get a job on campus your freshman year, decide what you want to do and start lobbying for it – find out how to sign up so that you can get a good deal on your tuition the next year.

Teach a Mini-course Everyone at college is there to learn (or at the very least have fun), so if you have a specific skill like power-leveling video game characters, flipping websites, designing clothes, or even water skiing or knitting, then you’re in luck. Chances are other students would be willing to pay you a small amount to learn one of your skills (for a reasonable fee - unless you’re Roger Federer giving a tennis mini-course, in which case you can command an unreasonable fee).

Money never starts an idea; it is the idea that starts the money.W. J. Cameron

Review your budget regularly and take seasonality into account, because while Christmas and Ramadan may bring a financial windfall, remember that summer can be a little dry.


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What is a Bank?A bank is a financial institution that keeps money in accounts for individuals or organizations, grants loans, exchanges currencies, provides credit to businesses and offers other financial services.

What is a loan?Lending is a sort of agreement between the bank and its customer in which the bank lends money to the customer (unless you are Bill Gates then you may be able to do it the other way around). The customer, in return, accepts to repay the money, including interests and charges, based on the terms and conditions of that agreement.

What are the needed guarantees?The loan is generally granted against specific guarantees such as:Cash collateralPersonal guaranteeSalary domiciliationWarrantiesMortgage…

Who studies the loan?The Credit Information Department supervises the loan application from the moment it is submitted to the bank

(On a more interesting note) the word Bank is derived from the Italian word ‹banco› which means bench where it was customary to exchange money.

LOANS

BANKING PRODUCTSAND SERVICES

Chapter 7The Banking Sector


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until it is processed and approved by the concerned departments. Approval will be based on the provided guarantees and investigation results conducted by the Credit Information Department on each loan application.The credit facility process is closely monitored and followed in coordination with other concerned departments.

What are the types of loans?Home Loans A home loan is a loan granted to finance the purchase of a home (finished, under construction, for construction). A home loan can be in both USD and LBP.

Car LoansA car loan is a loan to finance the purchase of a new or used car.

Personal LoansA personal loan is a loan that is granted for personal use.

Education LoansAn education loan is designed to help students pay for university. It may differ from other types of loans in that the interest rate may be substantially lower and the repayment schedule may be deferred while the student is still studying.

High-Tech LoansA High-Tech loan is a personal loan taken in order to get a high-tech item. With this type of loan you can finance the latest technology of PC, LCD, LED, Camera, Mobile… (It’s like Santa Claus except you have to pay for it).

ACCOUNTS

An account is a fund deposited in a bank where the customer deposits and withdraws money. The bank keeps a record of it. An identification number is assigned to every account and customer.

An account balance is called a creditor balance when the bank owes the customer money and a debtor balance when the customer owes the bank money.

WITHDRAWAL

DEPOSIT

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DEBIT

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is a way to buy things (or basically make your life easier). It is made up of coins and paper notes. It’s what you get for working or (if you are lucky) from sweet old grandma.

is a place that looks after people’s money and keeps it safe for them. It also lends money, grants loans, exchanges currencies, provides credit to businesses and offers other banking stuff.

is to plan how you spend the money you earn. It includes how much money you earn (and where you earn it from) and how much you will save.

means not spending your money straight away (not easy), but instead putting it in a bank account so you can save up and spend later.

is the record your bank keeps to know how much money you have given them. It has your name on it so the bank knows it is your money. You can put money in your account and take it out when you need it. You get a bank account number which you can almost never remember for each account that you have with the bank.

is the money your bank pays you for letting them look after your money. It’s kind of like a reward for you not spending your money. The more money you put in the bank and the longer you leave it there, the more money you’ll get even if it’s just very hard to keep it there.

MONEY

BANK

BUDGET

SAVING

BANK ACCOUNT

INTEREST

BANKESE

BankeseGlossary

Because we know it’s sometimes hard to translate from Bankese to English.

A language unfamiliar to the young crowd comprising complex banking terms best suited for adults with calculators and extensive knowledge in the art of finance

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is something you do that changes the balance of your account. This can be either through depositing (see below for definition) money in your account or withdrawing it (see below for definition).

is when you put money IN your bank account. When you make a deposit, your account balance goes up. is when you take money OUT of your bank account. When you make a withdrawal, your account balance goes down.

is the amount of money the bank is saving for you. It’s like the “=” amount in a math problem. For example, if you start with $5 and deposit (add) $2, your balance is $7. If you then withdraw (take out) $3, your balance becomes $4 ($7 - $3 = $4). It’s simple math.

is an acronym (short fancy way) for Automated Teller Machine. It’s a special machine that has money inside it and lets the bank’s customers make cash withdrawals and check their account balance without the need to go into the bank. Many ATMs also allow people to deposit cash or cheques and transfer money between their bank accounts.

Is an acronym for Personal Identification Number. It is like a special password (made up of numbers) that you input into an ATM machine to tell the bank that it’s OK to do the transaction you are asking for. It is very important that you keep your PIN to yourself (after all it is called a PERSONAL Identification Number… not a public identification code).

TRANSACTION

DEPOSIT

WITHDRAWAL

ACCOUNT BALANCE

ATM

PIN

Before you are a leader, success is all about growing yourself. When you become a leader, success is all about growing others.Jack Welch


Spring Financial Handbook

Documents

Transcript of Spring Financial Handbook