Junior Achievement 3.2 “Just Checking”

Vocabulary Review  Bank  A place of business that receives money, lends it to borrowers, and provides other services, such as checking accounts an safe deposit boxes.

 Credit Union  A financial institution owned by its members that provides savings and checking accounts, loans, and other services.

 Circular Flow  The movement of goods, services, resources, and money between households and businesses.

 Households  Families or individuals who pay money to businesses for goods and services.

Quote for the Day “There are plenty of ways to get ahead. The first is so basic I’m almost embarrassed to say it: spend less than you earn.” - Paul Clitheroe

Do you agree with this statement? Why or why not?

What can happen if people spend more money than they earn?

Today you will learn how to manage a checking account so you won’t ever spend more than you earn.

 Your success at JA BizTown depends on your ability to manage money.

There are lots of things you can do to help you handle money wisely. Can you think of a few?

Today we will take a look at checks.

 A check is a written order to a bank, credit union, or other financial institution to pay a certain amount of money from one account to another person, business, or organization.

Let’s look at a personal check written to Fantastic Cards. Please turn to page 36 in your workbook. (transparency 3-2a)

Now let’s look at a paycheck. This is a different kind of check. Please turn to page 37 in your workbook. (transparency 3-2b)

But how do you prove that you are the person who earned this money? How will the bank know that this is your paycheck?

 Banks have it figured out. You have to sign your name on the back of the check to make it payable. This is called “endorsing” the check.

 You also have to show a photo ID that has a signature on it to prove that it’s really you.

If you get a paycheck and you want to deposit some and spend some, you can have the cashier do that, too.

 The amount of money put into your account after you have taken some out to spend is called the  “net deposit”.

Please turn to page 38 in your workbook to practice writing checks. When you have finished, please complete the Word Map on page 39.