Checking Accounts Debit Cards Check Writing Understanding Checking

Checking Accounts, Debit Cards & Check Writing Understanding Checking Accounts and Debit Card Transactions

1. 2. 3. G 1 What is a Checking Account? ¡ ¡ Common financial service used by many consumers Funds are easily accessed l l l ¡ Check ATM (automated teller machine) Debit card Telephone Internet Services and fees vary depending upon the financial institution © Take Charge Today – May 2006 – Checking Account & Debit Card Simulation – Slide 2 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

1. 2. 3. G 1 Why Do People Use Checking Accounts? ¡ ¡ ¡ Reduces the need to carry large amounts of cash Convenience – useful for paying bills Spending Plan Tool l ¡ Keeps a record of where money is spent Safety – using checks is safer than carrying cash © Take Charge Today – May 2006 – Checking Account & Debit Card Simulation – Slide 3 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

1. 2. 3. G 1 What is a Check? ¡ ¡ ¡ A contract promising payment of funds to a vendor Used at the time of purchase as the form of payment Piece of paper pre-printed with the account holder’s: l Name l Address l Financial institution l Routing and account numbers © Take Charge Today – May 2006 – Checking Account & Debit Card Simulation – Slide 4 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

1. 2. 3. G 1 Bouncing a Check ¡ Check written for an amount over the current balance held in the account l ¡ ¡ ¡ ‘Bounces’ due to insufficient funds, or not enough money in the account to cover the check written Bank will charge you with an overdraft fee Vendor will charge you a returned check fee Harms future opportunities for credit © Take Charge Today – May 2006 – Checking Account & Debit Card Simulation – Slide 5 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

1. 2. 3. G 1 Other Checking Components ¡ Checking Account Register l Place to immediately record all monetary transactions for a checking account: ¡ ¡ Written checks, ATM withdrawals, debit card purchases, deposits and additional bank fees Checkbook l Contains the checks and the register to track monetary transactions © Take Charge Today – May 2006 – Checking Account & Debit Card Simulation – Slide 6 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

1. 2. 3. G 1 ATM Automated teller machine, or a cash machine ¡ Can be used to withdraw cash and make deposits ¡ Additional fees may be assessed if the ATM used is not provided by the financial institution sponsoring the card ¡ © Take Charge Today – May 2006 – Checking Account & Debit Card Simulation – Slide 7 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

1. 2. 3. G 1 ATM Click the link below to watch a brief video. Answer these two questions in your notes: 1. 2. Can you be double-charged ATM fees? How can you prevent ATM Charges? How to Avoid Soaring ATM fees © Take Charge Today – May 2006 – Checking Account & Debit Card Simulation – Slide 8 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

1. 2. 3. G 1 Debit Card ¡ ¡ Plastic card that looks like credit card Electronically connected to bank account Money is automatically taken from the bank account when purchases are made Requires a PIN (personal identification number) l Confirms the user is authorized to access the account © Take Charge Today – May 2006 – Checking Account & Debit Card Simulation – Slide 9 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

1. 2. 3. G 1 To Use A Debit Card ¡ ¡ ¡ Swipe it through the store machine or put into an ATM Enter the PIN Complete the transaction © Take Charge Today – May 2006 – Checking Account & Debit Card Simulation – Slide 10 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

1. 2. 3. G 1 Debit Cards - Pros and Cons Pros ¡ ¡ ¡ Convenient Small Can be used like a credit card Allows a person to carry less cash Does not allow overspending © Take Charge Today – May 2006 – Checking Account & Debit Card Simulation – Slide 11 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

1. 2. 3. G 1 Debit Cards - Pros and Cons ¡ ¡ ¡ Can lose track of balance if transactions are not written down Opens checking account up to credit fraud Others can gain access to the account if the card is lost and PIN is known © Take Charge Today – May 2006 – Checking Account & Debit Card Simulation – Slide 12 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

1. 2. 3. G 1 DUDE, WHERE’S MY CARD? © Take Charge Today – May 2006 – Checking Account & Debit Card Simulation – Slide 13 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

1. 2. 3. G 1 WISE PRACTICE You give your friend your ATM card and PIN number so he/she can get $25 out of your account. He/she instead withdraws $100. What can you do about it? A. B. C. D. Demand your bank reimburse you File a complaint with the Federal Reserve Board Demand your friend’s bank reimburse you Nothing -- you authorized your friend to use your ATM card © Take Charge Today – May 2006 – Checking Account & Debit Card Simulation – Slide 14 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

1. 2. 3. G 1 WISE PRACTICE Jamie lost her debit card. She did not report it missing for three months. If an unauthorized person used her debit card, her maximum liability is: A. $50 C. unlimited B. $500 D. none -- she notified her financial institution © Take Charge Today – May 2006 – Checking Account & Debit Card Simulation – Slide 15 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

1. 2. 3. G 1 Writing a Check ¡ To pay for items using a checking account l l ¡ A check is given as a form of payment Must be completed and given to the person or business Pre-printed items on a check l l Name and address of account holder Name and address of financial institution Check number Identification numbers (account, routing) © Take Charge Today – May 2006 – Checking Account & Debit Card Simulation – Slide 16 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

1. 2. 3. G 1 Writing a Check ¡ Personal Information l l l Account holder’s name and address May include a phone number, not required DO NOT list a social security number for safety reasons © Take Charge Today – May 2006 – Checking Account & Debit Card Simulation – Slide 17 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

1. 2. 3. G 1 Writing a Check ¡ Check Number l l Numbers used to identify checks Printed chronologically © Take Charge Today – May 2006 – Checking Account & Debit Card Simulation – Slide 18 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

1. 2. 3. G 1 Writing a Check ¡ Date l The date the check is written © Take Charge Today – May 2006 – Checking Account & Debit Card Simulation – Slide 19 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

1. 2. 3. G 1 Writing a Check ¡ Pay to the Order of l The name of the person or business to whom the check is being written © Take Charge Today – May 2006 – Checking Account & Debit Card Simulation – Slide 20 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

1. 2. 3. G 1 Writing a Check ¡ Amount of the Check in Numerals l l l The amount of the check written numerically in the box Write the cents smaller and underline Write the numbers directly next the dollar sign to prevent someone else from adding numbers to change the amount © Take Charge Today – May 2006 – Checking Account & Debit Card Simulation – Slide 21 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

1. 2. 3. G 1 Writing a Check ¡ Amount of the Check in Words l l The amount of the check written in words on the second line Start at the far left of the line, write the amount in words, followed by ‘and’, and the amount of cents over 100; draw a line from the end of the words to the word ‘dollars’ © Take Charge Today – May 2006 – Checking Account & Debit Card Simulation – Slide 22 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

1. 2. 3. G 1 Writing a Check ¡ Memo l l Space used to identify the reason for writing a check; optional Good place to write information requested by a company when paying a bill, generally the account number © Take Charge Today – May 2006 – Checking Account & Debit Card Simulation – Slide 23 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

1. 2. 3. G 1 Writing a Check ¡ Signature l The account holder’s signature agreeing to the transaction © Take Charge Today – May 2006 – Checking Account & Debit Card Simulation – Slide 24 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

1. 2. 3. G 1 Writing a Check ¡ Identification Numbers l l l First - routing numbers to identify the account’s financial institution Second - account number Third - check number © Take Charge Today – May 2006 – Checking Account & Debit Card Simulation – Slide 25 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

1. 2. 3. G 1 Writing a Check ¡ ¡ When writing a check, use BLUE or BLACK ink only (no pencil or crazy colors)! It makes it harder for someone else to change what you wrote! © Take Charge Today – May 2006 – Checking Account & Debit Card Simulation – Slide 26 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

1. 2. 3. G 1 Complete three PRACTICE questions in your notes. Then, check your answers on the following slides. © Take Charge Today – May 2006 – Checking Account & Debit Card Simulation – Slide 27 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

1. 2. 3. G 1 PRACTICE ANSWERS Identify the Parts of a Check 1. January 15, 2017 2. Bill’s Marine Service 3. 301 4. Boat rental deposit 5. 1234567890 6. 0123456789 © Take Charge Today – May 2006 – Checking Account & Debit Card Simulation – Slide 28 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

1. 2. 3. G 1 PRACTICE ANSWERS © Take Charge Today – May 2006 – Checking Account & Debit Card Simulation – Slide 29 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

1. 2. 3. G 1 PRACTICE ANSWERS © Take Charge Today – May 2006 – Checking Account & Debit Card Simulation – Slide 30 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

1. 2. 3. G 1 Complete the Check Writing Practice worksheet and turn in before you leave today. It will be graded for correct answers! © Take Charge Today – May 2006 – Checking Account & Debit Card Simulation – Slide 31 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona