1. Checking & Banking Adult Living

2. Why checks? Safer than cash –Can cancel if lost/stolen –Can only be cashed by payee Can only spend what you have (vs. credit cards) Records are kept

3. Checking Account Vocabulary Payee: party that recieves the check Payor: person writing the check Check register: a booklet that is used to keep a record of all your checking releated transactions, including checks, deposits, and debit card transactions

4. Checking Vocab. Cont. Endorsement: payee signs their name on the back of a check to cash or deposit the check. Balance: the amount of money you currently have in your account Non-sufficent funds: when you write a check for more money than you have in your account

5. Minimum Balance: The minimum amount of money required in your account. Having an amount less than the minimum balance may result in extra service charges or reduced privileges Service Charge: An amount the bank charges (fees) for use of the checking account. Voided check: One that you write “void” on and record in your log, is never given to a payee, used for large mistakes

6. Check vocabulary cont. Canceled/ stop payment check: requesting the bank cancel that check, after it is given to the payee, before they cash it, will cost you a fee, done when service/product is not provided

7. Check Writing Tips Be sure not to leave any blank areas on your check. The safest method is to draw a line though any open spaces. When writing the check amount, be sure to always start at the beginning (the far left) of the line. This will help make sure no one tries to make any unauthorized changes to your check. Write clearly and only use ink when writing your check to help prevent anything from being altered or changed. Your check is not legal until you sign it. However, keep your checks in a safe place until you are ready to use them for payment. Also, never sign a blank check. If you post date your check, it may not be cashed until on or after that date. However, it is recommended that you do not post date a check. Banks will often process the check even if the check is post dated if they do not notice the date. Also, they may charge an additional processing fee. Make sure the amount box (where the amount of the check written in numbers) and the amount line (the amount of the check written in words) match. If you make a mistake when writing a check, write "VOID" in big letters on the check and tear it up. Keep a record in your check register of voided checks and canceled checks. Be sure to keep a record of all your written checks in your check register. Also, keep track of your check numbers. Each new written check should be written with the next available check number. When paying by check in person, keep in mind that you may need to show proper identification. This may include a drivers license, passport, or other form of ID. Check to make sure that the numbers written out in long-hand match the numbers written on the box on the check. Often, bank employees only look at the long-hand numbers, and ignore the numbers written in the box. A common mistake is an amount such as $100.42 is incorrectly written as One- hundred forty-two instead of One-hundred and 42/100. If you do this, the larger amount may be deducted from your account.

8. Write clearly and only use ink when writing your check to help prevent anything from being altered or changed. Your check is not legal until you sign it. However, keep your checks in a safe place until you are ready to use them for payment. Also, never sign a blank check.

9. If you post date your check, it may not be cashed until on or after that date. However, it is recommended that you do not post date a check. Banks will often process the check even if the check is post dated if they do not notice the date. Also, they may charge an additional processing fee.

10. Make sure the box and the written amount match. If you make a mistake when writing a check, write "VOID" in big letters on the check and tear it up. Keep a record in your check register of voided checks and canceled checks. Be sure to keep a record of all your written checks in your check register. Also, keep track of your check numbers. Each new written check should be written with the next available check number.

11. When paying by check in person, keep in mind that you may need to show proper identification. This may include a drivers license, passport, or other form of ID.

12. Check to make sure that the numbers written out in long-hand match the numbers written on the box on the check. Often, bank employees only look at the long-hand numbers, and ignore the numbers written in the box. A common mistake is an amount such as $100.42 is incorrectly written as One-hundred forty-two instead of One- hundred and 42/100. If you do this, the larger amount may be deducted from your account.

13. There are many banking services available Certified checks- from your account, but money is set aside and bank stamps “certified” Cashier’s check- from the bank’s account- you pay them, they write the check Money order- like a cashiers or certified check but bought at wal-mart or post office

14. Additional Banking Services Money order- like a cashiers or certified check but bought at wal-mart or post office Debit card Safe-deposit box- storage at the bank