Checking Checking AccountsAccounts

What Kind of Spender are You?

Take the Spending Challenge!

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U.S. Mint VideoU.S. Mint Video

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Federal Reserve Cont.Federal Reserve Cont.

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The Federal Reserve Created 1913 Goal: Economic stabilityGoal: Economic stability Monetary PolicyMonetary Policy

– Influences growth of money/creditInfluences growth of money/credit Bank for banksBank for banks

– Payroll, large payments, provide cashPayroll, large payments, provide cash Bank for govt. Bank for govt.

– Taxes go here to pay for military payrolls & Taxes go here to pay for military payrolls & SSSS

Supervisor/regulator of banksSupervisor/regulator of banks– Oversee institutionsOversee institutions

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The Role of Banks The Role of Banks (private (private entities)entities)

Banks are in business to earn a Banks are in business to earn a profitprofit– Interest charged for lendingInterest charged for lending– Interest depositors paid lower than Interest depositors paid lower than

interest bank charges = incomeinterest bank charges = income Banks provide securityBanks provide security

– Protect your money’s purchasing powerProtect your money’s purchasing power– Banks are regulatedBanks are regulated

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The Role of Banks The Role of Banks Cont.Cont.

FDIC (Federal Deposit Insurance FDIC (Federal Deposit Insurance Corp)Corp)

Insures maximum $250,000Insures maximum $250,000 Money and financial transactionsMoney and financial transactions

– BarterBarter Trading good and services without using Trading good and services without using

moneymoney Work only if you have something the Work only if you have something the

other person wantsother person wantsInternet: What is FDIC and Purpose

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10-J History of the 10-J History of the Federal Reserve Bank Federal Reserve Bank

of Kansas Cityof Kansas City

http://www.kc.frb.org

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Types of MoneyTypes of Money

CurrencyCurrency– paper money & coinpaper money & coin

CheckCheck– order bank to pay sum to order bank to pay sum to

person named on check person named on check (payee)(payee)

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The New Color Of Money

Progress Update

20032004

2008 2006

Did you know…Did you know…

Susan B. Anthony $1 coin replaced by Susan B. Anthony $1 coin replaced by Golden Dollar in 2000Golden Dollar in 2000

$100,000 largest note produced$100,000 largest note produced– December, 1934 - January, 1935December, 1934 - January, 1935– Used for transactions btn FRBUsed for transactions btn FRB– Not circulated to general publicNot circulated to general public

$100 note is largest denomination currently $100 note is largest denomination currently issued in United Statesissued in United States

““In God We Trust”In God We Trust”– Didn't appear on U.S. Federal Reserve Notes Didn't appear on U.S. Federal Reserve Notes

until Series 1963 currency.until Series 1963 currency.

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Checking Acct Checking Acct video – new onevideo – new one

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Advantages of Using Advantages of Using ChecksChecks SafetySafety

– Lost or stolenLost or stolen– Replaced – cash can’t!Replaced – cash can’t!

ConvenienceConvenience– Large purchasesLarge purchases– Safer to send through mail than cashSafer to send through mail than cash

Records of your transactionsRecords of your transactions– CheckCheck– Bank sends statementBank sends statement

Written record of all transactionsWritten record of all transactions

Checking Acct. TypesChecking Acct. Types

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Checking Account CostsChecking Account Costs

Checking account feesChecking account fees– Maintenance feeMaintenance fee

Flat fee to cover cost of maintaining Flat fee to cover cost of maintaining acct.acct.

No matter how many checks you writeNo matter how many checks you write

– Service ChargeService Charge Charge for each check you writeCharge for each check you write

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Your Checking AccountYour Checking Account

Open a checking accountOpen a checking account– 18 or older18 or older

Signature cardSignature card

Hand out voc. sheet

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DepositsDeposits

Deposit formDeposit form Record your depositRecord your deposit

Steven H. Williams3456 Willow RoadMaryville, MO 64468(660) 562-3234

Nodaway Valley BankMain StreetMaryville, MO 64468(660) 562-0000

:5434564436 433567 342

Parts of a CheckParts of a Check

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Drawer

Payee

Date written

Check Number

Amt in figures

Drawer’s SignaturePurpose of check

Acct/Routing Numbers

Drawee

Written Amt

Writing a CheckWriting a Check

Parts of a checkParts of a check– Use inkUse ink– Numerical amount vs. handwritten Numerical amount vs. handwritten

amountamount– How to fill one outHow to fill one out

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Now you write a check!

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EndorsementsEndorsements

BlankBlank– Your nameYour name

RestrictiveRestrictive– Restricts useRestricts use– ““For Deposit For Deposit

Only”Only”

SpecialSpecial– Transfer ownershipTransfer ownership

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Check Register and other Check Register and other infoinfo

Record checks in check registerRecord checks in check register– Record each transactionRecord each transaction– Record interestRecord interest– Calculate your new balanceCalculate your new balance– Record check numbersRecord check numbers

OverdrawnOverdrawn Stop paymentStop payment VoidVoid Post-datedPost-dated

Now you fill one out!

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Your Bank StatementYour Bank Statement

““Reconciliation”Reconciliation” Monthly statementMonthly statement

– Transactions (deposits/wd)Transactions (deposits/wd)– Bank feesBank fees

Balancing or reconciling your Balancing or reconciling your accountaccount

Confirm transactionsConfirm transactions

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Account ReconciliationAccount Reconciliation

Make adjustmentsMake adjustments– Record any maintenance Record any maintenance

fees/interest earned in check fees/interest earned in check register!register!

What if the bank made an error?What if the bank made an error? File your recordsFile your records

– Canceled checks proof of transactionCanceled checks proof of transaction– Make get back or copy ofMake get back or copy of

Do Checking Simulation 1

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Identity TheftIdentity Theft

Video & make flier

See flier & booklet

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Uses of Electronic FundsUses of Electronic Funds

Direct depositDirect deposit Automatic PaymentAutomatic Payment ATMATM Point of Sale TransactionPoint of Sale Transaction Stored-value cardsStored-value cards Prepaid cardsPrepaid cards Debit CardDebit Card CyberbankingCyberbanking

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Automated Teller Machines Automated Teller Machines (ATMs)(ATMs)

EFT: electronic funds transferEFT: electronic funds transfer Your ATM card and PINYour ATM card and PIN ATM transactions – savings/checkingATM transactions – savings/checking

– ATM depositATM deposit– ATM withdrawalATM withdrawal

FeesFees Use ATMs responsiblyUse ATMs responsibly

Act: Understanding ATM Fees Internet Search

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Consumer Protection Consumer Protection and Responsibilitiesand Responsibilities

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Different Checks for Different Checks for Different PurposesDifferent Purposes

Certified checksCertified checks Cashier’s checksCashier’s checks Money ordersMoney orders Traveler’s checksTraveler’s checks

Make fliers of different types

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Certified CheckCertified Check

Personal check signed and stamped by Personal check signed and stamped by bank bank

Guaranteed to have enough money in Guaranteed to have enough money in account to cover checkaccount to cover check

Written to specific payeeWritten to specific payee Low riskLow risk Fee: $5-$20Fee: $5-$20 EX: buying 1EX: buying 1stst house or automobile house or automobile Taken out of your account & no longer Taken out of your account & no longer

have access tohave access to

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Cashier’s CheckCashier’s Check

Bank’s OWN personal check singed by Bank’s OWN personal check singed by the bankthe bank

Request amount then pay bank and Request amount then pay bank and small service chargesmall service charge

Fee approx. $25Fee approx. $25 Sometimes called bank money order Sometimes called bank money order

or treasurer’s checkor treasurer’s check Do not need to have checking accountDo not need to have checking account EX: buying 1EX: buying 1stst house or other property house or other property

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Money OrderMoney Order

Check that draws on money of bank or Check that draws on money of bank or other financial institution that issued itother financial institution that issued it

Different than cashiersDifferent than cashiers– Companies, not just banks, issueCompanies, not just banks, issue– Your name, not the bank, appears on checkYour name, not the bank, appears on check

Fee: $1-$10Fee: $1-$10 Ex: utility payment, phone billEx: utility payment, phone bill

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Traveler's CheckTraveler's Check Form of payment often bought before Form of payment often bought before

going on tripgoing on trip– $20, $50, $100, and $500 denominations$20, $50, $100, and $500 denominations

Signed twice before being cashedSigned twice before being cashed Safer to use when traveling than cash Safer to use when traveling than cash

or personal checkor personal check Never expireNever expire Fee: 1% of amount of checksFee: 1% of amount of checks Can be replaced if lost or stolenCan be replaced if lost or stolen

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Other ServicesOther Services

Wire transfersWire transfers– Electronic communicationElectronic communication– Moves money from one acct to anotherMoves money from one acct to another– Large sums of moneyLarge sums of money– EmergenciesEmergencies– Fee: $20-$40Fee: $20-$40

Safe deposit boxesSafe deposit boxes– Individual boxes you rent from bankIndividual boxes you rent from bank– Store valuables (car titles, birth certificate)Store valuables (car titles, birth certificate)– Fee: $30-$40 yearFee: $30-$40 year– ID, sign, and have your key and obtain bank’s key to ID, sign, and have your key and obtain bank’s key to

accessaccess

Do checking simulation 2 and WB, QZ, Review, Test