Week 3 Women and Money

Systemic injustice

Economic disparities and barriers shaped by unfair systems, not just individual effort

three examples of systemic injustice?

Segregated neighborhoods influenced by landlords' rental restrictions; barriers to accessing mainstream banks; economic disparities shaped by unfair systems

What was mistrust of financial institutions a response to?

Exclusion

What did Black communities face and enter into?

Faced barriers to support and entered into inferior economic systems

What emerged in response to financial exclusion by Black communities?

Black-owned banks

What three things did Black-owned banks aim to do?

Support communities, create opportunities, build trust

What does the Great Migration show about being unbanked?

Being unbanked limited community participation

What three things were women historically limited in access to?

Bank accounts, loans, credit

What did some women do in response to financial exclusion?

Opened banks for women to access financial services

What did the Equal Credit Opportunity Act make illegal?

Discrimination in lending based on race, gender, or marital status

What is the key takeaway about citizenship and justice?

True citizenship requires justice, not just access to opportunity

What three things are fair financial systems fundamental to?

Trust, inclusion, exercise of full citizenship

What do banks do? (Three things)

Hold deposits, pay interest, make loans

What four types of loans do banks make?

Auto loan, mortgage, student loan, business loan

What are three ways banks help people save money?

Direct deposit; bill pay, recurring payments, Zelle, Venmo; credit card payments

What is interest?

Cost of borrowing money or the return on lending/investing it, expressed as a percentage

How do banks work?

You add money to savings; bank lends it out; bank charges interest on loans; bank pays you a small amount of interest to incentivize deposits

What are alternative financial systems? (Name at least four)

Check cashers, payday lenders, pawn shops, auto title loans, money orders, pre-paid debit cards

Why are some households unbanked or underbanked? (Three reasons)

Bank fees, minimum balance, distrust

What is true about alternative finance?

Convenient but often expensive and predatory

Why does trust in banks matter?

Allows many financial systems to run; businesses rely on money people put into the bank; trusting the bank puts you in a position to save, build credit, and access opportunities

What is an interest rate?

How quickly your money can grow in a savings account

What are fees? (Name at least four)

Monthly maintenance fees, minimum balance fees, paper billing fees, ATM fees, overdraft fees

What are account agreements?

Where you can find all information about an account

What are account features?

Different tools or services an account may offer

What is a checking account?

Everyday spending, connected to debit card, money frequently moving in and out

What is a savings account?

Holding funds separate from everyday spending with a future purpose

What is a high yield savings account?

A savings account that pays more interest, typically an online account

What is a bank statement?

Monthly spending information

What is budgeting?

A plan for your money that helps you make intentional spending choices and feel more in control

What are the benefits of budgeting? (Three benefits)

Become aware of spending; stay on track with savings goals; reduce financial stress