The subject of our first instruction is “Household Management”. You can learn the instruction dates from the closest TEB branch to you and you can take your place in there for the instruction. The instruction dates are updated on monthly bases and open to the general public.
The dates for the 2013 instructions will be broadcasted sooner..
Family Economy Management
We can think of the family like a company with its income and expenditures. Prior to all, we have to clearly determine our regular income and basic expenditures as a family. We can think of the family as if it is a company with its income and expenditures. Prior to all, we have to determine clearly our regular income and basic expenditures. We need to account the change of direction during times like school time or vacation, well and we should know the amount and time of incentives or other additional income, if there is any. Thus, you can determine when you can save, when you may need to borrow, how you can refund those debts in a year in a healthy way.
Also, you must consider the future while you are generating your balance of payment and spending. The investments you desire (buying a house, university cost of children, etc.) or possible revenues in the future (field sale, promotion, etc.) should be considered.
Deposit: It is the money saved in a bank or a similar institution where the account owner can withdraw whenever it is required or at the end of a term or at the end of a notification period. The account of the deposit is called as “deposit accounts”, “receivable current accounts” or “smaller current accounts” according to the place or type of the account. The deposit account is important; it prevents your money to devaluate against the inflation and your money values. If you money is in a bank, your cash flow is easier, your invoices can be paid with your instruction, your credit card debt or rent can be paid automatically, so you do not have to spend time for such details during your extensive daily life.
Bank Card: It is the card providing the use of banking services including deposit accounts or private current accounts. Bank card is almost equivalent of the cash, it spends the money in your account, not more and it is safer than using cash since it can be encoded. You can use your bank cards at ATMs and shopping. When you use your bank card during shopping, the amount of the payment will be deducted from your draw account.
Credit Card: It is an alternative payment tool that is given by bank or some financial institutions to make payments on the contractual points having POS devices without using cash or to draw cash advance from ATMs and the spending must be paid back at once or on monthly basis to the bank. The credit card is different than bank card or cash because of its some campaigns and instalment facility. It is especially useful for buying very expensive products. But the main misperception that suffers many credit card users is that they assume the credit card limit as the existed money and spending it aggressively or finding less the instalment as if they will only pay for it at once.
Credit: It is defined as to provide a purchasing power or transfer of such power to someone who will pay it back after a defined period of time. The credit is not the money you “do not have”, it is “your” money, it is the amount you foresee to earn. Using a bank credit is a process that requires right calculations which should be considered while the amount and payment conditions are set forth. It is not something you should be afraid of, today there are 13 millions of people using those credits in Turkey.
Fund: It is the portfolio that is generated by the institutions who are authorized by the Capital Market Board and collects savings of investors and included stocks, government bonds, currencies, valuable papers having mine or interest yielding to spread the risk. The investors receive a participation certificate for their savings in the fund. The interest fund varies as stock funds, mixed funds and generation funds. It is an investment instrument having a greater transaction fund in capital markets.
Stocks: It is one of equivalent parts of a company’s capital. People who buy the stock of a company become partners of that company. The stock defines the particular relationship between the company and the stock-holder..
Bond: An interest yielding certificate of a state or a company that promise to pay back the capital with its interest on a stated date in the future. One of the most important differences of the bonds from the long term credits is the pricing of the bond according to the perverseness and of credit according to the restructuring risk. If the bond debtor goes bankruptcy, the clients have no chance to compromise. It increases the cost..
Government Bond: They are middle and long term investment tools which are used to valorise your money by purchasing the debit instruments in TL or other currencies of government. You can sell those tools without waiting for the end of the term to turn into cash. It has lower return but has also lower risk, they are reliable. The treasury bills are issued by the Treasury of the Republic of Turkey and they have less than a year period.
Bill: The commercial paper that is signed by the debtor to give the creditor to indicate a stated amount of money will be paid on a certain date is called as bill (bill to order). The bono is always prepared as order; it is not for the bearer. The bills enliven the economy, a person who is a creditor may not have cash but s/he may have a customer not to be delayed, the customer may pay later, in such cases, the bill provides flexibility for the trade. The bills can be waited for the end of the term or they can be discounted in the banks before their terms. In case it is collected from a bank, the bank and the creditor have gaining and the debtor has no loss.
IPS (Individual Pension System): It is a saving feature retirement system. In our country, especially in metropolitan cities, the pensions of many people are not enough. And unfortunately, many people are wrong by considering their salaries will continue forever and do not consider their future. Even people, who want to save for their future, postpone it to a period after “end of an instalment, or buying another house”. IPS is very important to prevent such postponement and more regular and disciplined savings.
Interest: It is the yielding rate of a credit sale agreement. We can define the interest as the price of the money. While borrowing or saving…
The interest types are:
Simple interest: It is the interest that is added to the capital at the end of a defined term. The simple interest is calculated with that formula:
Simple interest = Capital * Interest rate * Term
Compound Interest: It is the interest of an investment earned on principal investment period plus interest that was earned earlier. In other words, it is the interest earning interest. For example, we consider 10% interest from the bank for a month. The rate is for a year. The monthly interest we earn will be 1/12 of the 10%. When we add the monthly interest to the capital before we consider the same ratio, the annual earning will be 10.47%. That rate will mean the annual compound of the monthly simple 10%.
Another important matter of the interest is whether it is gross or net. For example, the deposit interests are gross interests however, at the end of the term, the earning will be lower than that rate. The reason is the concept of the stoppage.
Stoppage (Collection at Source): It is possible to define the stoppage as an income tax from the source. It means for income tax that the tax debts of people having salaries are cut from the salary before the salary is paid to the related people. The stoppage rate is currently 15%. There is also a fund cut of 10% of the stoppage. The stoppage rates can differ according to the instruments which the government wants to promote. For example, it is 5% for individual pension system at the moment.
Another critical matter of the products we used is other commissions and costs in addition to the interest. For example, we should check the other costs in addition the interest rate while we are using a credit. You should ask your bank officer for the annual cost rate including all the costs and commissions of the credit. Sometimes you may prefer the credit with higher annual cost rate on account of your personal budget and income and spending balance.
When the return of a financial instrument that is offered to you is higher than another one, you must confirm whether the said return is constant or variable
Constant Return: If you avoid from risk, the constant return is exactly for you. Your money cannot devalue or valorise much in constant return. You know how much your money will valorise at the beginning. Government bonds, term deposit are ideal for such return
Variable Return: It is ideal for risk takers. Your money may be doubled or devalued. Such alternatives are currency, stock, gold, etc.
Some instruments may yield more returns as a result of the higher risk they have. The important points here are to understand the risk correctly, to consulate with your bank officer for the right time of waiting and to take the risk consciously. It is may be more sense to prepare a basket including constant returns and variable returns.
Basket: It means to invest different products. Thus, the profit is tried to be maximized and the risk is minimized, in other words, it can be seen as the insurance of the income. It is especially beneficial if the risk is not clear. For instance, you may invest a part of your money to government bonds, another part to the gold and another part to the currency. Thus, if one of them decreases, another one may increase so the loss will be minimized. You secure yourself by government bond even if the others, gold and currency, are decreased.
For the term deposit, the net interest must be known in addition to the gross and net interest rates and the interest must be calculated as amount according to the defined term.
Other investment products, the risk of the product should be clarified, if a basket will be prepared, the contents and the features should be searched, the changes in the market should be adopted accordingly on the right time and the cash requirement for the defined duration must also be considered.
Individual Pension System, a plan consisting with the accumulated money should be chosen, cuts of the management on others should be known, tax benefits are used and a company who informs the payers on time should be chosen.
If you need cash,
Straight line instalment credits, you should explain your requirement and monetary situation you are in to your bank officer correctly, you also should learn the annual cost rates from the officer, you should ask the interest, costs and commissions and consider additional income you may have like incentives.
Overdraft Deposit Account, it is a short term investment tool and ideal for immediate needs. It Works with a daily interest, you only pay the interest for the related day. Before use, the interest rates of the banks should be compared.
The insurance is the only product you cannot buy when you need it. Therefore, you need to take out a policy by considering all the possibilities consciously. You must be aware of its scope and how much it secures.
You must remember that we are open personal risks in addition to the physical risks. Therefore, there are many kinds of insurance against earthquake, fire, flood, theft, terror, etc. You must be sure that the values are determined correctly and the indemnities are correct.
For Saving Time
Payments, you may instruct for automatic payments nearly for all payments (invoices, rents, etc.) to your bank. If you instruct the bank to use your credit card, you may enjoy from many campaigns. In case there is not any money in your deposit, you may assure yourself with overdraft account against non-payment situation.
Alternative channels, you may be served all the banking services via online banking or call centres, like demanding a product, applications, reaching the desired documents and information. It is more cost effective to use alternative channels than branches.