 Safe – don’t have to carry cash, but easy access to money  If carry cash, too easy to spend  Provides you w/ a record

 Convenience – don’t have to have cash, good source of paying bills  Safety – Don’t have to carry a lot of cash  Easier budgeting – Provides a record  Proof of Payment – Have a printed proof of purchase

 A check is like a mini contract where you agree to pay someone

 Need deposit money  Need Soc Sec #  Need to forms of ID  Important to shop around for the best account

 Single – only you can sign checks  Joint – 2 people are equally responsible  Trust – only you act on acct but if something where to happen to you then $$$ go to beneficiary

 Monthly service fees  Withdrawal fees  Returned check fees (insufficient fund)  Check fees  Stop payment

 Overdraft protection – what does it mean to overdraw your account?  Stop payment  Debit card  Online banking

 Overdraft protection is a line of credit for overdrawn checkes  You pay a fee for this ranging from $2.00 to $10.00  Must have another account that it draws the money from  How do banks charge for an insufficient fund?  What would it cost you if you wrote a check to McDonalds and it bounced?  How long does it take a check to clear?

 Stop payment is an order for a bank not to cash a particular check  Banks charge a fee for this service ranging from $25 to $50  When might you use this

 Like a credit card, however, the funds are withdrawn directly from your checking account  Don’t forget to record these in your register

 Allows you to check accounts, transfer money & pay bills  Less expensive (less paper and processing)

 Payee – party to whom check is written (person who gets to cash the check)  Drawer – party who wrote check and is paying the money (drawing it from their acct)  Drawee – bank where the money comes from

 Always record payments in your register  When writing a check it’s a good habit to record it in your register before writing check

 Blank  Restrictive  Special

 Record of amount deposited  Fill out and give w/ money and checks to bank teller

 Bank reconciliation is a way of checking your records w/ the bank records  Should reconcile your account once per month  Cancelled checks – those that have cleared your account  Outstanding – checks and deposits that have not cleared the account (do not show up on statement)

 Check off all items from your statement in your check register (checks, Visa, withdrawals, deposits)  Record any fees from your statement to your register  List all outstanding checks and deposits on form  Use ending balance on statement and subtract outstanding checks and withdrawals then add in outstanding deposits  The final figure should equal your last balance in your check register