2 Introductions Instructor and student introductions Module overview
Check It Out 3 Student Introductions Your name Your expectations, questions, and concerns about checking accounts
Check It Out 4 Purpose Check It Out will teach you how to use a checking account responsibly.
Check It Out 5 Objectives By the end of this course, you will be able to: State the benefits of using a checking account. Determine which checking account is best for you. Identify the steps involved in opening a checking account.
Check It Out 6 Objectives (Continued) Add and withdraw money from a checking account. Reconcile a check register with a bank statement.
Check It Out 7 Agenda and Ground Rules 2 hours long Two 10-minute breaks Training methods Class participation
Check It Out 8 Checking Accounts A checking account lets you write checks and use a debit card to: Pay bills. Make purchases.
Check It Out 9 Benefits of Checking Accounts Convenience Cost Better money management Safety
Check It Out 10 Convenience Checking accounts: Give you quick and easy access to your money. Let you “direct-deposit” payroll and other checks. Eliminate the need to carry a lot of cash.
Check It Out 11 Cost Using a checking account is usually less expensive than using other services to cash checks or buy money orders.
Check It Out 12 Better Money Management Having a checking account lets you: Keep a record of “transactions.” Build a positive relationship with your bank.
Check It Out 13 Safety Having a checking account: Is safer than carrying large amounts of cash. Protects your checks and check card if they are lost or stolen. Means your money is insured up to the maximum amount allowed by law.
Check It Out 14 How to Find the Right Checking Account Get recommendations. Answer the questions on the Determining Your Checking Account Needs Worksheet.
Check It Out 15 Fee Schedule Some common bank fees include: Monthly service fee Minimum balance fee Automated Teller Machine (ATM) user fee Overdraft fee Stop payment fee
Check It Out 16 When a Checking Account Isn’t Right for You If you: Don’t write many checks. Tend to “bounce” checks. Can’t find a checking account for which you can maintain the minimum balance.
Check It Out 17 Practice Exercise: Choosing the Right Checking Account Instructions: Read each scenario carefully. Indicate whether or not David should get a checking account. Be prepared to explain your answer. Then read and answer the questions about fees a bank might charge.
Check It Out 18 Types of Checking Accounts Free/low-cost checking Electronic/ATM checking Regular checking Interest checking
Check It Out 19 Documents Needed to Open a Checking Account Photo ID Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN) A deposit
Check It Out 20 Account Verification The bank or credit union reviews your checking account history to make sure that: You will be a responsible customer. No one is trying to steal your identity to open an account.
Check It Out 21 Signature Card The document that identifies and contains the signature of the owner of the account.
Check It Out 22 Two Ways to Use Money in Your Checking Account Write a check. Use electronic banking.
Check It Out 23 Steps to Writing a Check Make sure you have enough money in your account. Complete the blank spaces on the check. Record the transaction in your check register.
Check It Out 24 Sample Check YOUR NAME YOUR ADDRESS YOUR PHONE NUMBER PAY TO THE ORDER OF 105 00-6879 770 Dollars FINANCIAL INSTITUTION Your City, State, Zip Code :00000000 : 0000 0000 0 000 0 0.: Memo $ Date: _______ 13 89 645 11 10 2 7
Check It Out 25 Back of the Check ENDORSE HERE DO NOT WRITE, STAMP OR SIGN BELOW THIS LINE RESERVED FOR FINANCIAL INSTITUTION USE *
Check It Out 26 Sample Checks YOUR NAME YOUR ADDRESS YOUR PHONE NUMBER PAY TO THE ORDER OF 105 00-6879 770 Dollars FINANCIAL INSTITUTION Your City, State, Zip Code :00000000 : 0000 0000 0 000 0 0.: Memo $ Date: _______ YOUR NAME YOUR ADDRESS YOUR PHONE NUMBER PAY TO THE ORDER OF 105 00-6879 770 Dollars FINANCIAL INSTITUTION Your City, State, Zip Code :00000000 : 0000 0000 0 000 0 0.: Memo $ Date: _______ 2/26/20XX Coffee Mart19.75 Nineteen and 75/100 Your signature coffeemaker
Check It Out 27 Electronic Banking Electronic banking uses computers to move money into and from your account. It includes: Debit card transactions Electronic bill pay ATM transactions
Check It Out 28 Debit Card A debit card lets you: Deposit cash into and withdraw it from your checking account. Make purchases at retail locations. BE CAREFUL! The money is immediately taken out of your account.
Check It Out 29 Electronic Bill Pay A service that automatically takes money out of your account to pay your bills. You don’t have to pay for postage. You don’t have to worry about late payments. You can also use bill pay to make payments to businesses to which you owe money.
Check It Out 30 Automated Teller Machine (ATM) 1 3 2 4
Check It Out 31 Four Ways to Add Money to Your Checking Account Cash or check deposit using the teller service ATM deposit Deposit by mail Direct deposit
Check It Out 32 Sample Deposit Slip Your Name Your Address Your Phone Number DEPOSIT TICKET DATE 3/22/20XX DEPOSITS MAY NOT BE AVAILABLE FOR IMMEDIATE WITHDRAWAL SIGN HERE IF CASH RECEIVED FROM DEPOSIT YOUR FINANCIAL INSTITUTION YOUR CITY, STATE Zip Code DO NOT USE FOR AUTOMATIC PAYMENT OR CHECK TRANSACTIONS :00000000 : 00000 00000.: CURRENCY COIN CHECKSCHECKS OR TOTAL FROM REVERSE SUBTOTAL LESS CASH RECEIVED NET DEPOSIT
Check It Out 33 Sign the Back of the Check ENDORSE HERE DO NOT WRITE, STAMP OR SIGN BELOW THIS LINE RESERVED FOR FINANCIAL INSTITUTION USE *
Check It Out 34 Sample Deposit Slip Front and Back Your Name Your Address Your Phone Number DEPOSIT TICKET DATE DEPOSITS MAY NOT BE AVAILABLE FOR IMMEDIATE WITHDRAWAL SIGN HERE IF CASH RECEIVED FROM DEPOSIT YOUR FINANCIAL INSTITUTION YOUR CITY, STATE Zip Code DO NOT USE FOR AUTOMATIC PAYMENT OR CHECK TRANSACTIONS :00000000 : 00000 00000.: CURRENCY COIN CHECKSCHECKS OR TOTAL FROM REVERSE SUBTOTAL LESS CASH RECEIVED NET DEPOSIT Check ENTER TOTAL ON THE FRONT OF THIS TICKET
Check It Out 35 ATM Deposits Similar to making an ATM withdrawal. Use the special deposit envelope. Remember to get a receipt.
Check It Out 36 Mail Deposits Include a deposit slip with the check. NEVER send cash through the mail.
Check It Out 37 Direct Deposit Checks are deposited directly into your checking account. Your money is available immediately. It’s the safest way to receive your money. Signing up is easy at your financial institution.
Check It Out 38 Keeping an Accurate Record of Checking Account Activity Record all transactions. Record maintenance fees, interest, and other bank charges. Review the monthly checking account statement. Reconcile your check register with your monthly checking account statement.
Check It Out 39 Checking Account Statement A record of all transactions made during the preceding month, including: Cashed checks All withdrawals and deposits Debit card purchases Fees
Check It Out 40 Reconciling Your Checking Account Finding the reasons for the difference between your checkbook register balance and the checking account statement balance caused by: Transactions on the bank statement that weren’t recorded in the check register. Transactions recorded in your check register that were made too late to appear on the bank statement.
Check It Out 41 Checking Account Reconciliation Form CHECKS OUTSTANDING - NOT CHARGED TO ACCOUNT $ Check Number Check Amount $ Total$ $ $ $ Balance$ * This balance should agree with balance in your check register. Total$ Bank balance shown on this statement Subtract withdrawals outstanding Add deposits outstanding
Check It Out 42 “Bad” or NSF Check A check you write when there isn’t enough money in your checking account to cover it.
Check It Out 43 Consequences of Writing Bad Checks Bad check fees Negative activity reported Bank closes your account Civil and/or criminal prosecution Merchants may not accept your checks Your credit may be impacted