1. 7.2 Use Your Checking Account Goals: ◦Understand the purpose of a checking account. ◦Demonstrate how to write, endorse, record, and deposit checks. ◦Identify types of checking accounts and checking account fees.

2. What is a personal checking account?

3. Personal checking account A bank account that allows depositors to write checks to make payments is a checking account. How old do you need to be to open a checking account on your own? 18 years old You can open one between the ages of 13-17 but you must have a custodial account

4. How to open a checking account Try to think of the four things you will need to do at the bank: 1.Complete an application 2.Sign a signature card 3.Provide valid identification 4.Make an initial deposit

5. Checking Account Costs Two types of Checking Account Fees: 1.Monthly maintenance fee- this is a flat fee to cover the costs of maintaining your account regardless of the number of checks you write. 2.Service charge for each check you write. (usually between 15 and 25 cents per check) Be sure to investigate the fees charged by competing banks to find the best deal for your financial situation.

6. Making a deposit You may deposit cash into your checking account You may deposit all or part of a check into your account.

7. Sample Check 1.Date you write the check 2.Your name and address 3.Payee 4.Your signature 5.Amount of check in numbers 6.Amount of check in words 7.Check number 8.Bank the check is drawn on 9.Routing number & account number

8. How to write a check When writing a check you MUST fill out the following parts: 1. The date you write the check 2. The name of the payee 3. The amount of the check, written in numbers and words 4. Your signature

9. Rules to writing a check Always fill out checks in ink. Write clearly. When writing the amount in words show cents as a fraction. Start writing at the left of the amount space, so no one can alter your check, then fill that space with a line. Use the memo to write yourself a brief description of what the check is for.

10. Recording your checks in your register. Checks come with a booklet called a check register, for recording your transactions. 1. Record each transaction 2. Record fees 3. Record interest 4. Calculate your new balance- Your account balance is the total amount in account at a specific date. 5. Record check numbers. This is the most effective way to keep from overdrawing on your account.

11. Overdrawing means writing a check for more than you have in your account. When the bank receives a request to pay a check for which you have insufficient funds, it may refuse to pay and charge you a fee of $35 or more. Bouncing a check

12. Advantages of using checks 1. Safety- the greatest advantage of using a check is safety! 2. Convenience Don’t want to carry large sums of cash, bulky etc. Can mail checks of any amount. 3. Records of your Transactions Checks automatically serve as records for your transactions. Banks send you a statement, or it is available on-line, which is a record of all your transactions.

13. How to cash check To cash a check: 1.Take it to your bank 2.Sign your name on the back of the check in the designated space- endorsement. An endorsement acknowledges that you received the money or transferred your right to the money to someone else 3.Have ID ready

14. The check clearing process In order for you to have access to the money, the check has to “clear” first. This process can occur electronically overnight or used to take a week depending how far away the bank is located.

15. Banking Service 7.2 Use Your Checking Account