GETTING TO

KNOW
FINANCIAL
PRODUCTS
PREPARED BY:
BOTOR, CYRIL
G.
 LESSON OBJECTIVES
At the end of this lesson you should be able to:
1. Define financial products;
2. Enumerate the different financial products available in the
community;
3. Describe the financial instruments in each financial product and
4. Appreciate the importance of financial products and their
instruments.
 What is financial products?
● Financial products are commodities relating to
monetary resources or funds which are used as tools
as tools or instruments to conduct financial
transactions.
Different financial
products
Saving instruments
1. Saving
a. savings account
Finance method of setting aside a b. Checking account
certain amount of money or a
portion of an income for a c. time deposits
specified period resulting in an d. pension plan
accumulated sum.
 a. Savings account
● Used to deposit and withdraw money

b. checking account
● A checking account is a bank account you can write
checks from, or access several other ways ,which tends
to make it your go to, daily transaction bank account
 c. Time deposits
● Saving deposits that cannot be withdrawn over a
fixed period of time

d. Pension plan
● Saving intended for expected retirement usually at the age of 56
for military personnel, 60 for employees in private companies
and it is mandatory at 65 and optional at 60 for government
employees
Different financial
products
2. Credit
finance method of getting money,
goods, or services in the present
and paying for it in the future
Kinds of credit
a. Investment credit
- is a long term credit extended by commercial
and industrial banks intended for large-scale
projects or indusries
b. Commercial credit
- form of short-term credit used to finance
small business enterprises or the movement of
good between the manufacturer and retailer.
c. consumer credit
- form of credit to purchase commodities and
services to satisfy the needs and desires of
individuals, and their family.
 Credit
instruments or
tools
 a. Credit card
● A thin rectangular card authorizing a purchase of
good or service

b. Written contract between the creditor

and the borrower
● Stipulates the amount of loan, interest rate, period of payment,
penalties and sub charges and other related information
 c. ledger
● This is a book containing accounts to which credits
and debits are recorded.
Different financial
products
3. Payment
Finance method of making
settlement for loan or credit
made from banks, loan agencies
and private individuals with
lending businesses.
Tools or instrument in
processing payments
a. paper transactions
b. electronic fund transfer
c. Payment cards
d. actual goods or
commodities
Different financial
products

4. insurance Types of insurance

Method of guaranteeing the
a. health insurance
protection of a person or property by b. educational insurance
a contract between one party (the c. health insurance
insured) and another party (the
insurance company) for a specified d. insurance on properties.
amount at a specified time.
Different financial
products
5. remittance
Method of transmitting a sum of
money from a place of origin to a
place of destination.
6. Investment
Finance method of placing savings
or sum of money in a more or less
permanent form with the expectation
of ensuring the security of the
principal and a moderate return or
interest
“This is a quote. Words
full of wisdom that
someone important said
and can make the reader
get inspired.”

—Someone Famous
2
itle. P5
Book T