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STUDENT LEARNING PLAN
Lesson 5-1: Checking Accounts
©2014 National Endowment for Financial Education www.hsfpp.org Lesson 5-1: Checking Accounts
High School Financial Planning Program June 2014
OVERVIEW
Nothing beats the feel of a crisp new $20 bill in
your hand. But as you move toward the “real
world” after high school, you’ll run into situations
where handing someone cash isn’t the best
option—if it’s an option at all. And credit cards
aren’t always the best choice either. Especially
since the interest can mushroom into a mountain
of debt fast. Luckily, there are plenty more ways to
spend and receive money.
In this lesson you will learn about how to use a
checking account.
LEARNING TASKS These tasks match pages 3-21 in Student Guide 5.
__ 1. There’s a new song you want—quick! Brainstorm as many different ways you can shop for and/or pay
for this item.
__ 2. Brianna knows how to handle gift cards and cash but has never had to use other ways to pay for
items. Have you? Find out how checking accounts are used for payments.
__ 3. Learn how to use a checking account to give and receive money. Complete Activity 5.2:
Check Writing 101 and Activity 5.3: Make the Deposit for practice.
__ 4. Jason paid out a lot of money in fees because he wasn’t tracking his spending. Can you do any better?
Complete Activity 5.4: Keeping Track and the Balance Zoe’s Bucks task to practice keeping track of
payments and deposits from a checking account.
__ 5. Demonstrate how to track checking account payments and deposits. Complete Challenge 5-A: Use a
Checking Account. Reconcile the account at the end of each month to verify your calculations.
TAKING IT HOME
Ask an older family member if s/he has ever used a check
cashing service. If so, ask about the pros and cons to using
check cashing services and ask if there was a fee charged
for using the service.
FURTHER PRACTICE
Complete a Check Writing tutorial on the Goodwill
Community Foundation education website,
www.gcflearnfree.org/moneybasics/6. Additional tutorials
are available on this site for additional practice.
FURTHER STUDY
A written check is a contractual agreement
used to transfer money from one person
to another. When you open a bank
account, you sign papers that are also
considered a contract. Research the rights
and responsibilities of using various
payment methods, including check, debit
card, money order, or gift cards.
LEARNING OUTCOMES
In this lesson you will use a checking account to
handle business transactions. Along the way
you will:
Discuss reasons to use check payments.
Demonstrate how to use a checking
account.
Explain how to reconcile a checking
account.
Demonstrate what you learned by using a
checking account.
Activity 5.1: Proof of Payment
©2014 National Endowment for Financial Education www.hsfpp.org Activity 5.1: Proof of Payment
High School Financial Planning Program June 2014
NAME: DATE:
Directions:
Give two instances in your life when a check is a good option to use as proof of payment rather than
paying with cash.
Activity 5.2: Check Writing 101
©2014 National Endowment for Financial Education www.hsfpp.org Activity 5.2: Check Writing 101
High School Financial Planning Program June 2014
NAME: DATE:
Directions:
Practice writing checks for the following purchases. Always use permanent ink to write a check, and
be sure your handwriting is legible. In a real situation, you want to be sure that the bank can clearly
read the check to deduct the correct amount from your account. Don’t erase or cross out errors. If
you make a mistake, print “void” across the check, and then write out another check. You will find an
example of a written check on page 8 in the Student Guide.
Tips for writing numerals on checks:
The check amount is written twice on a check to verify the amounts. The bank will question the
validity of the check if both amounts don’t match.
Write the amount in figures in the box on the right side of the check, and write the same amount in
words on the line below beginning as close to the left of the check as possible. After all, you don’t
want anyone to make adjustments to the numbers after your write the check!
When writing out dollar amounts in words, write the amount as you say it out loud. For
example, $7,450 is written as seven thousand four hundred fifty. The word “dollar” is already
on the check to the right, so you don’t have to repeat the word.
When spelling out large numbers, use a hyphen to connect a word ending in –y to another
word. Examples: twenty-one or ninety-nine.
You don’t need to use the word “and” after “thousand” or “hundred.” Just write the amount.
Only write the dollar amount in words on the text line, not the cents amount. Any amount less
than a dollar is shown as a fraction. Example: 52.31 is written as fifty-two and 31/100.
To discourage anyone from modifying your written amount, fill in the line completely. Add a
wavy line to the right of the amount if necessary. Do the same after the payee’s name so no
other name can be added to the check.
Use your own name, your school name, and today’s date to write checks for these transactions:
Buy a pair of tickets for an upcoming school event with a check payable to your school,
$42.50
Pay rent to Mayfair Apartments, $750
Contribute to a disaster fund with a check payable to the American Red Cross, $5
Activity 5.2: Check Writing 101
©2014 National Endowment for Financial Education www.hsfpp.org Activity 5.2: Check Writing 101
High School Financial Planning Program June 2014
2008 _______________________________
_______________________________
_______________________________
1015
0 02 003 0 04 1 0 9 5 85 772 3 1 0 1 5
1016
0 02 003 0 04 1 0 9 5 85 772 3 1 0 1 6
1017
0 02 003 0 04 1 0 9 5 85 772 3 1 0 1 7
Activity 5.3: Make the Deposit
©2014 National Endowment for Financial Education www.hsfpp.org Activity 5.3 Make the Deposit
High School Financial Planning Program June 2014
NAME: DATE:
Directions:
Brianna received money for her birthday. To stay on track for her saving goals, she wants to deposit
all of the money in her savings account, except $20 for spending. Fill out a slip to deposit a $35
check and a $50 bill into her savings account #101-234556-678.
About the Endorsement
Regardless of how you deposit a check, you need to endorse it
first by signing your name on the backside, behind the “pay to
the order” phrase. This completes the transaction to transfer
money from the check writer to the person receiving the check.
Here’s an example of Brianna’s endorsement:
Brianna Richie
Activity 5.4: Keeping Track
©2014 National Endowment for Financial Education www.hsfpp.org Activity 5.4: Keeping Track
High School Financial Planning Program June 2014
NAME: DATE:
Directions:
Record the following seven transactions in Jason’s checkbook register. Use actual dates for this
week. Write the check number in the Number/Code column. For other transactions, create your own
coding system. Example: “D” is a deposit.
Code Date Description of Transaction Payment (—) Deposit (+) Balance
Is your final balance $201.65?
Monday: Opened checking account with cash deposit, $200
Automatic withdrawal to pay for personalized checks, $20
Wednesday: Wrote Check #100 at Fine Foods to buy groceries, $23.11
Wrote Check #101 to buy books at Wayne’s Book World, $13.50
Thursday: Wrote Check #102 to self for “Cash” to have spending money for the weekend, $30
Friday: Automatic withdrawal for monthly phone bill $25.50
Saturday: Deposited paycheck, $113.76
Activity 5.5: Does it Balance?
©2014 National Endowment for Financial Education www.hsfpp.org Activity 5.5: Does it Balance?
High School Financial Planning Program June 2014
NAME: DATE:
As you have learned in this module, the account balance shown on your bank statement isn’t the
amount that is actually available for you to use now. It doesn’t include any deposits or withdrawals
that were made but not yet processed by the bank. You need a system to keep track of every deposit
made to your account and every payment or withdrawal you make so you know the actual balance as
of the current moment.
To ensure that your tracking record matches your bank’s records, reconcile what you have recorded
with your bank account statement to compare transaction information. You should do this at least
once a month. This is a good habit to stick to so you confirm that your transactions are recorded
accurately and also regularly check for any unauthorized activity on your account.
Directions:
Reconcile Jason’s checking account to ensure that his records match his credit union’s records.
Compare the credit union statement with the checking account information that Jason tracks in a
spreadsheet.
Step 1. Compare the transactions listed on the statement with what Jason recorded in his
spreadsheet. Check () each cleared transaction in Jason’s list that is also shown on the
bank statement. Any unchecked items are outstanding—meaning that Jason has recorded
the transaction but the transaction hasn’t yet been processed by the bank.
Step 2. Use the formula in the box below to make adjustments to the bank statement balance. If
Jason’s information has been recorded accurately and your math is correct, the adjusted
bank balance should match the current balance Jason shows on his spreadsheet.
Credit Union Statement Ending Balance
+ Outstanding Deposits
- Outstanding Payments
Adjusted Credit Union Balance
Does adjusted number match Jason's ending balance?
Activity 5.5: Does it Balance?
©2014 National Endowment for Financial Education www.hsfpp.org Activity 5.5: Does it Balance?
High School Financial Planning Program June 2014
Jason’s Partial Spreadsheet (recent transactions)
Ck/Code Date Description Cleared Payment Deposit Balance
deb cd 10/5 JC Penney (clothes) -62.55
299.16
D 10/5 Deposit (BD money) 25.00 324.16
267 10/10 West High School (fee) -13.90
310.26
268 10/12 Chester Food Bank (donation) -25.00
285.26
D 10/20 Deposit (BD money) 100.00 385.26
269 11/1 Family Insurance (car ins) -126.50
258.76
270 11/3 Entertainment, Inc (concert tickets) -50.00
208.76
D 11/5 Deposit (paycheck) 60.00 268.76
deb cd 11/13 Bob's MiniMart (gas) -30.00
238.76
auto
w/d 11/15 Western Mutual Funds (investment) -100.00
138.76
Jason Price
Task: Balance Zoe’s Bucks
©2014 National Endowment for Financial Education www.hsfpp.org Task: Balance Zoe’s Bucks
High School Financial Planning Program June 2014
NAME: DATE:
Scenario:
Zoe is a college student who works part time and lives at home with her parents. She is paid every two
weeks. Her parents require her to work to be able to pay for her car insurance, college books, gas,
entertainment, and any other wants she might have.
Directions:
Use the information below to log Zoe’s payments and deposits in her checking account register.
Tuesday During her lunch break, Zoe opens a checking account with her first paycheck. She worked
40 hours over the past two weeks. Her paycheck totaled $280 after taxes were taken out.
Enter this amount as the first entry in the register.
On the way home from work Zoe stops to fill her car up with gas. Gas was $3.69 a gallon and
she pumped 15 gallons into the car. She swipes her debit card to pay for the gas.
Wednesday Zoe received her car insurance bill in the mail today. She writes a check for $115 to pay the
bill. Record the amount for check #101 in her check register.
Saturday The neighbors call to ask Zoe if she can babysit Friday night while they go out for dinner. She
gladly accepts the job offer and spends four hours with the neighbor’s children. They pay her
$15 an hour. She deposits the full amount into her checking account on Monday.
Zoe and her friends go to the movie on Saturday night. The price of admission is $12, and
she also buys popcorn and a soda for $6.50. She uses her debit card twice at the theatre to
pay for her entertainment purchases.
Monday The professor in Zoe’s finance class at the university tells the students that they will need to
purchase a book by the next class. The cost is $175. Zoe realizes she does not have enough
money in her checking account to pay for the book but she writes a check for it anyway. She
is hoping that her next paycheck will be deposited before this check goes through the bank.
Friday When she checks her account balance online, Zoe sees that she was charged $36 the
previous day for overdrawing on her account. Unfortunately for her, her last check was
deducted from her account before her next paycheck was deposited.
During the past two weeks Zoe worked 42 hours at $7.50 an hour. From the total pay,
$27 was taken out for taxes. Record the net pay that was automatically deposited into
her account today.
Task: Balance Zoe’s Bucks
©2014 National Endowment for Financial Education www.hsfpp.org Task: Balance Zoe’s Bucks
High School Financial Planning Program June 2014
Zoe’s Checking Account Register
Check No. Date Description of Transaction
Payment/
Debit (—)
Deposit/
Credit (+) Balance
