PLEASE… Pick up a worksheet

from the basket Use the information from last

week to complete this Bell Ringer

AGENDA:

11:30-11:45: Bell Ringer

11:45 – 12:20: Checking Vocabulary/Notes

12:20 – 12:25: Break

12:25 – 1:00: Reconciliation Practice

OUTCOMES:

1. List checking vocabulary

2. Properly fill out a check, a checkbook register, and a deposit slip

3. Properly reconcile a checkbook

QUESTION… If you don’t want to use a credit card,

what else can you do to take advantage of our “cashless society”?

PLEASE… Pick up a notes sheet from the basket Complete the top portion labeled “Bell

Ringer”

Credit Union – A credit union is a cooperative financial

institution that is owned and controlled by its members and operated for the purpose of providing credit at competitive rates, and providing other financial services to its members.

Bank – An institution that deals in money and provides

other financial services. Primary function of banks is to put their account

holders' money to use by lending it out to others who can then use it to buy homes, businesses, send kids to college

Signature card – A part of the application process for opening an

account at a bank. The bank has you sign a signature card so that they can compare your signature with your signature on any checks or paperwork submitted to the bank. It helps to protect you and your account from fraud.

Minimum balance – This is the minimum amount that you

must keep in your bank account at all times. Different types of checking accounts may

require different minimum balance. Some student accounts do not require any

minimum balance.

Overdraft fee – When you write a check, withdraw money from an

ATM, use your debit card to make a purchase, or make an automatic bill payment or other electronic payment for more than the amount in your checking account You may be charged an overdraft fee - $30, $40, $50.00.

Withdrawal – Money that is taken out of your account by going

into the bank and asking for money or withdrawing amount from an ATM.

Deposit slip – A slip or form that is filled out with your

name, account number and a space for you to record the cash and/or checks that you are depositing.

Transfer – Is an action taken to transfer funds from one

account to another. Usually a transfer takes place between a checking and a savings account.

Interest Rate – Is the rate at which a bank will pay you to have

your money in their checking or saving accounts.

Usually the rate is stated at APR – annual percentage rate.

Service Fees – The fees a bank will charge you for various

services they provide…to use your visa card, to process checks, new checks, etc.

Debit Card – Also known as a check card or a bank card, it

can be used just like an electronic check. The funds paid using a debit card are

transferred immediately from your account

Credit Card – A credit card that can be issued by your

bank and when used, it charges the amount to your account

Your debit card/credit card can be one card and you are given to the option to use it in either way.

Check Register – An area to record information about

your transactions such as checks that you write, debit card or credit card transactions, ATM withdrawals.

Bank Statement – A financial report that is prepared at the

end of every month and tells you all the transactions which effected your account throughout the month. It shows you all your deposits, withdrawals, electronic payments, bills paid etc.

Bank Reconciliation – Is the act of comparing what your bank

says happened within your account to what you say happened within your account.

When completing the bank reconciliation you are comparing the two and then making changes (reconciling) them until they equal.

Payee – The payee is the person that you are

paying or writing the check to.

Payor – The payor is you, the account holder,

the person whose account is going to be affected by the check.

Account Number – Every bank account is assigned an account

number. That account number is written on every check and deposit slip in order to identify your account within the bank.

ABA Routing Number – Number that is assigned to the bank institute

and is written on every check and deposit slip so that the bank at which your account is located can be identified and the money can be retrieved from that particular bank.

Endorsement – The way that you sign the back of the check

when you going to cash or deposit the check. There are three basic types of endorsements:

A blank endorsement is made by signing your name on the back of the check. You must sign it exactly the way it appears on the “Pay to the Order of” line. Anyone can cash or deposit a check with a blank

endorsement, even if the check is not written to him or her. You should only do a blank endorsement if you are cashing a check, and don’t sign it until you are at the financial institution.

ENDORSEMENTS A restrictive endorsement is made by writing “For

deposit only” on the first line of the back of the check and then signing your name underneath. A check with a restrictive endorsement can only be

deposited into an account in your name.

A check is signed with a special endorsement when you want to give your check to another person. It is different from a blank endorsement in that the check can only be cashed or deposited by the person you are assigning the check to. To do a special endorsement, write “Pay to the order

of [name of person you are giving check to]”, and sign your name underneath.

check number

ABA number

name and address

date

payee

numeric amount

written amount

drawer or maker

account number

memo

WRITING CHECKS A checking account is a service provided by financial

institutions that allows you to deposit money with them and withdraw it at a later date

The safest place to keep your money is in a financial institution – banks and credit unions are insured, so within limits, even if your financial institution were to go out of business, you would not lose your money.

Types of accounts: Individual Joint Senior/student/teen Business

CHECKING ACCOUNTS Although some institutions let you apply

for a checking account online, most people apply in person at their local branch. Since opening an account can take several minutes, only go when you have plenty of time, Remember to bring identification and funds

to deposit with you.

STEPS TO FILL OUT A CHECK1. Fill in today's date2. Fill in the name of the individual or

company you are writing the check to.3. Fill in the amount of the check in

numerals, with cents after the decimal.4. Fill in the amount of the check in words,

except for cents, which is written in cents/100.

5. This is an optional field to describe the reason for the check. For example, groceries.

6. Sign your name.

April 2, 2012

PPL Electric 112.53

One hundred twelve and 53/100 ------------------------------------

March Electric Bill Melissa Mattie

CHECK WRITING What do you do if you make a mistake

on a check:Small error – cross it out and write your

initials above the mistakeLarge error – write VOID across the whole

check

Make sure to write in pen, not pencil Checks that are written incorrectly will

be returned to you, sometimes with a fee!

USING CHECKBOOK REGISTER It is easy to forget about a check once it

leaves your hands. To prevent this from happening, take the time to note at least the following for every check you write:Check number (this alerts you if a check is

missing in sequence) Date you wrote the checkWho the check was written out toWhat you wrote the check for The amount of the check

CHECKBOOK REGISTER Use the checkbook register to neatly

keep and record all transactions.

The checkbook register also gives you a running total of the account balance.

Fill in the Check Register for:Check #302 on March 17th, PPL Electric -

$112.53Deposit of $1298.00 on April 3rd Service charge $10.00 on April 26th

302 3/17 PPL Electric 112.53

4/3

887.47

Deposit 1298.00

2185.47

2175.4710.00Service Charge4/26

OTHER TYPES OF WITHDRAWALS A debit card, also called a check card looks like a

credit card, but it functions like a combination ATM card/check.

ATMs allow you to do many banking transactions, such as deposit checks, withdraw cash, and check your account balance.

When you insert your ATM card, you must enter your pin number Either you will be given a pin number when you receive

your card or have to create one before you can use it Memorize your pin number, and do not share it with

anyone or carry it in your wallet.

ONLINE BILL PAY Using on-line bill pay through your financial

institution offers convenience – you can pay your bills through one website instead of having to log onto the individual websites of every service provider and lender.

Instead of writing a paper check to pay a bill, you: Log into your checking account online Input the amount that you want to send to your

service provider, lender, or whoever else you need to pay.

Your financial institution will then either send an electronic check or

Print and mail a check for you.

DEPOSITS In order to deposit or cash a check, you

first need to endorse it.

DEPOSIT SLIP Fill in a deposit slip:

$260.50 Cash and CoinsPaycheck (check #34467) for $1040.55Rebate Check #4562 for $50.00Cash Back $25.00

260 50

34467

4562 50 001040 55

1351 05

25 00 1326 05

October 12, 2012

Melissa Mattie

REVIEW QUESTIONS Please complete the Review Questions at

the end Place these notes in the “Turn In” Basket

Make sure your name is on it! Take a quick stretch break!

FOR YOUR AGENDA…. Personal Finance Test

Wednesday1. Financial Planning2. Budgeting3. Payroll Deductions (including tax calculations)4. Credit Notes #1 (handwritten) and #2 (Typed)

5. Checking Notes (handwritten)

------------------------------------------------------------Please place your checking notes in the basket

(they will be returned to you either today or the beginning of class tomorrow)

BANK RECONCILIATION Why is it a bad thing to just use your

checkbook register to figure out how much money you have in your account?You forget to record thingsBanks can make mistakesSome checks take forever to process (they

don’t show up in your account right away) This is why you can’t use your online statement

eitherAlso, some people hold on to checks for

months before they cash themYou are charged certain fees from the bank

that may not show up in your register

BANK RECONCILIATION This is why we have to reconcile our

checkbooks every month! To do this, you will need:

Your checkbook registerYour bank statement (printed or online)Bank Reconciliation statement from the

bank

FOR THE REMAINDER OF CLASS… Place your bank reconciliation packet in

the basket Locate all your notes for Wednesday’s

test (print if you need to)