Checking Accounts USE A CHECKING ACCOUNT 1 2012

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Checking Accounts USE A CHECKING ACCOUNT 1 © 2012 National Endowment for Financial Education

Checking Accounts USE A CHECKING ACCOUNT 1 © 2012 National Endowment for Financial Education | Lesson 5 -1: Checking Accounts

Ways to Pay? How many different ways can you shop for and pay for

Ways to Pay? How many different ways can you shop for and pay for music? 2 © 2012 National Endowment for Financial Education | Lesson 5 -1: Checking Accounts

Preview Today we will answer these questions: • Why should I pay with a

Preview Today we will answer these questions: • Why should I pay with a check? • How do I use a checking account? • How can I find out how much money I have in my checking account? Use what you learn today to demonstrate how to use a checking account. 3 © 2012 National Endowment for Financial Education | Lesson 5 -1: Checking Accounts

Meet Jason and Brianna Jason – Senior • Has a checking account and debit

Meet Jason and Brianna Jason – Senior • Has a checking account and debit card • Pursuing career in law enforcement • Also considering joining the Coast Guard Brianna – Grade 9 • Starting a new job soon • Doesn’t have a bank account • Gets most of income from the “bank of mom and dad” • Likes to receive gift cards for gifts 4 © 2012 National Endowment for Financial Education | Lesson 5 -1: Checking Accounts

Demand Deposits Funds can be withdrawn on demand by a customer without advance notice

Demand Deposits Funds can be withdrawn on demand by a customer without advance notice to bank or credit union • Bank teller (in person) • ATM • Online • Phone • Check • Debit card 5 © 2012 National Endowment for Financial Education | Lesson 5 -1: Checking Accounts

What’s on a Check? 6 © 2012 National Endowment for Financial Education | Lesson

What’s on a Check? 6 © 2012 National Endowment for Financial Education | Lesson 5 -1: Checking Accounts

7 © 2012 National Endowment for Financial Education | Lesson 5 -1: Checking Accounts

7 © 2012 National Endowment for Financial Education | Lesson 5 -1: Checking Accounts

Make the Deposit XX/XX/201 X 1 4 7. 5 8 Your Name 1 4

Make the Deposit XX/XX/201 X 1 4 7. 5 8 Your Name 1 4 7. 5 8 Your signature (when taking cash) 0 5 1 3 5 7 9 2 4 6 8 8 © 2012 National Endowment for Financial Education | Lesson 5 -1: Checking Accounts -2 5. 0 0 1 2 2. 5 8

Endorsements Blank Endorsement Your signature 9 Restrictive Endorsement For deposit only Your signature ©

Endorsements Blank Endorsement Your signature 9 Restrictive Endorsement For deposit only Your signature © 2012 National Endowment for Financial Education | Lesson 5 -1: Checking Accounts

Jason’s Transactions Description of Transaction Code Date Mon 10 Payment ( —) Deposit (+)

Jason’s Transactions Description of Transaction Code Date Mon 10 Payment ( —) Deposit (+) Balance from previous page Balance 35. 00 d/c Mon Phone charger -19. 00 16. 00 d/c Mon Pizza -18. 00 -2. 00 Fee Mon NSF fee -30. 00 -32. 00 d/c Mon Food Fee Mon NSF fee -30. 00 -71. 00 213 Thur School fee -25. 00 -96. 00 Fee Mon NSF fee -30. 00 -126. 00 -9. 00 © 2012 National Endowment for Financial Education | Lesson 5 -1: Checking Accounts -41. 00

Keeping Track Description of Transaction Code Date 11 Payment ( —) Deposit (+) Dep

Keeping Track Description of Transaction Code Date 11 Payment ( —) Deposit (+) Dep Mon Cash deposit W/D Mon Checks -20. 00 180. 00 100 Wed Fine Foods – groceries -23. 11 156. 89 101 Wed Wayne’s Book World -13. 50 143. 39 d/c Thur Cash -30. 00 Auto w/d Fri Phone bill Dep Sat Paycheck 200. 00 Balance -25. 50 © 2012 National Endowment for Financial Education | Lesson 5 -1: Checking Accounts 200. 00 113. 39 87. 89 113. 76 201. 65

Balance Zoe’s Bucks Trans Date* Description of Transaction Dep Tues Deposit paycheck d/c Tues

Balance Zoe’s Bucks Trans Date* Description of Transaction Dep Tues Deposit paycheck d/c Tues Gas ($3. 69 x 15 gallons) 101 Wed Insurance premium d/c Sat Movie d/c Sat Theatre food Dep Mon Babysitting fee ($15 x 4 hours) 102 Mon Book NSF Dep 12 Thurs Insufficient funds fee Fri Payment ( —) Deposit (+) 280. 00 Balance 280. 00 -55. 35 224. 65 -115. 00 109. 65 -12. 00 97. 65 -6. 50 91. 15 60. 00 151. 15 -175. 00 -23. 85 -36. 00 -59. 85 Paycheck ($7. 50 x 42 hrs-$27 tax) © 2012 National Endowment for Financial Education | Lesson 5 -1: Checking Accounts 288. 00 228. 15

Reconcilable Differences The Bank Statement Balance + Outstanding Deposits - Outstanding Payments and Withdrawals

Reconcilable Differences The Bank Statement Balance + Outstanding Deposits - Outstanding Payments and Withdrawals Does the result equal what you tracked in your register? 13 © 2012 National Endowment for Financial Education | Lesson 5 -1: Checking Accounts

Hints to Find Math Errors Subtract to calculate the difference. – Does the difference

Hints to Find Math Errors Subtract to calculate the difference. – Does the difference match a transaction amount? » Look for a missing an entry for that same amount » Search for a duplicate entry for that amount – Is the difference twice a transaction amount? » Check for a deposit mistakenly labeled as withdrawal or vice versa – Is there a difference of 1, 100, or 1, 000? » Recheck work for an addition or subtraction error – Is the difference divisible by 9? » Look for a transposed number (i. e. $125 mistakenly entered as $152) 14 © 2012 National Endowment for Financial Education | Lesson 5 -1: Checking Accounts

Challenge 5 -A Use a Checking Account ü Track checking account payments and deposits

Challenge 5 -A Use a Checking Account ü Track checking account payments and deposits for two months. ü Reconcile the account at the end of each month to verify your calculations. 15 © 2012 National Endowment for Financial Education | Lesson 5 -1: Checking Accounts

Reflection What is your preferred method of payment? check debit card cash Why? 16

Reflection What is your preferred method of payment? check debit card cash Why? 16 © 2012 National Endowment for Financial Education | Lesson 5 -1: Checking Accounts

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