High School Financial Planning Program Use a checking account Lesson 5-1: Checking Accounts Checking Accounts Use a checking account Display this slide lesson to introduce the lesson. ©2012 National Endowment for Financial Education | Lesson 5-1: Checking Accounts ©2012 National Endowment for Financial Education | www.hsfpp.org

High School Financial Planning Program Lesson 5-1: Checking Accounts Preview Today we will answer these questions: How do I use a checking account? How do I keep track of how much money I have in my checking account? Use what you learn today to demonstrate how to use a checking account. Page 3 Preview the Learning Outcomes in the Student Learning Plan. By the end of this lesson, the students should be able to demonstrate how to use a checking account. ©2012 National Endowment for Financial Education | Lesson 5-1: Checking Accounts ©2012 National Endowment for Financial Education | www.hsfpp.org

High School Financial Planning Program Lesson 5-1: Checking Accounts Demand Deposits Funds can be withdrawn on demand by a customer without advance notice to bank or credit union Bank teller (in person) ATM (automated teller machine) Online Phone Check Debit card Student Guide, pages 4-7 Use the information on pages 4-5 to discuss reasons people might choose to pay for goods and services in ways other than using cash. Use this to transition into the benefits and potential negatives of using a checking account for purchases (page 6). Explain that checking accounts are considered types of demand deposit accounts because the account funds are accessible to the customer without any advance notice to the bank or credit union. Either as a whole class or in small groups, have the students brainstorm responses to Activity 5.1: Proof of Payment. ©2012 National Endowment for Financial Education | Lesson 5-1: Checking Accounts ©2012 National Endowment for Financial Education | www.hsfpp.org

High School Financial Planning Program Lesson 5-1: Checking Accounts What’s on a Check? and 50/100 Student Guide, pages 8-10 Explain that when a person writes a check or makes an electronic payment with checking account funds, s/he is ordering the bank or credit union to immediately transfer funds to someone else. When the check is signed or debit card used, the payer (owner of the checking account) enters into a contract to agree to pay the designated amount when the payee (person receiving payment) deposits the check or accepts the electronic payment. Revisit responses from the opening activity to point out that many checking account payments are made electronically, whether online, by phone, or with a debit card. However, there will be occasions when someone may need or choose to pay with a paper check. Use the slide and information on pages 8 and 10 to point out the information that is displayed on every check. Stress that a check needs to be filled out clearly, accurately, and in permanent ink to avoid any opportunities to misinterpret data or to prevent fraud. Use Activity 5.2: Check Writing 101 for students to practice writing checks. [An example of the completed activity are shown on the next slide.] ©2012 National Endowment for Financial Education | Lesson 5-1: Checking Accounts ©2012 National Endowment for Financial Education | www.hsfpp.org

High School Financial Planning Program Lesson 5-1: Checking Accounts Check Writing 101 Student Guide, page 9 Use Activity 5.2: Check Writing 101 for students to practice writing checks. An example of the completed activity are shown on this slide. ALTERNATE ACTIVITY: Arrange for the students to complete the 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. ©2012 National Endowment for Financial Education | Lesson 5-1: Checking Accounts ©2012 National Endowment for Financial Education | www.hsfpp.org

Checking Account Register ©2012 National Endowment for Financial Education | Lesson 5-1: Checking Accounts

High School Financial Planning Program Lesson 5-1: Checking Accounts Make the Deposit XX / XX / 201X 1 4 7 . 5 8 Your Name 1 4 7 . 5 8 Student Guide, pages 16-18 Remind the students that they need to have sufficient funds in their checking accounts to have money available for payments. A checking account is not like a credit card account. Rather, they will need to ensure that they deposit enough money into their accounts to have money available to pay on demand, whether by check or a debit card. Use the slide to illustrate how to fill out a deposit slip. In some cases of making a deposit at an ATM, a deposit ticket might not be needed. Regardless, point out that every deposit will require the depositor to designate the account receiving the funds and the amount when making a deposit. Use Activity 5.3: Make the Deposit so students practice filling out a deposit slip. Your signature (when taking cash) - 2 5 . 0 0 0 5 1 3 5 7 9 2 4 6 8 1 2 2 . 5 8 ©2012 National Endowment for Financial Education | Lesson 5-1: Checking Accounts ©2012 National Endowment for Financial Education | www.hsfpp.org

High School Financial Planning Program Lesson 5-1: Checking Accounts Endorsements Blank Endorsement Restrictive Endorsement Your signature For deposit only Your signature Student Guide, pages 17-18 Show examples of endorsements that are written on the back side of a check, behind the “Pay to the Order of” phrase written on the front side of the check. Point out that the bank receiving the endorsed check will match the endorsement with the designated payee on the front of the check. ©2012 National Endowment for Financial Education | Lesson 5-1: Checking Accounts ©2012 National Endowment for Financial Education | www.hsfpp.org

High School Financial Planning Program Lesson 5-1: Checking Accounts Does it Match? The Bank Statement Balance + Outstanding Deposits - Outstanding Payments and Withdrawals Does the result equal what you tracked in your register? Student Guide, pages 19-21 Point out the value in comparing your checking account records with the bank information. Explain how to reconcile an account as a way to compare the bank statement with an individual’s records. Stress the importance of routinely reconciling each account—at least once a month—to ensure that account records are complete and accurate. Have the students complete Activity 5.5: Does it Balance? to verify Jason’s account balance. ©2012 National Endowment for Financial Education | Lesson 5-1: Checking Accounts ©2012 National Endowment for Financial Education | www.hsfpp.org

Hints to Find Math Errors High School Financial Planning Program Lesson 5-1: Checking Accounts Hints to Find Math Errors Subtract to calculate the difference. Does the difference match a transaction amount? Look for a missing an entry for that same amount Search for a duplicate entry for that amount Is the difference twice a transaction amount? Check for a deposit mistakenly labeled as withdrawal or vice versa Is there a difference of 1, 10, 100, or 1,000? Recheck work for an addition or subtraction error Is the difference divisible by 9? Look for a transposed number (i.e. $125 mistakenly entered as $152) This is a good time to provide tips to find math errors when reconciled amounts don’t match. ©2012 National Endowment for Financial Education | Lesson 5-1: Checking Accounts ©2012 National Endowment for Financial Education | www.hsfpp.org

Now You Try It Complete the “You’re on Your Own” checking account exercises in the packet. Be careful, the check register is chronological and the entries are made as they occur. You will begin on July 15th with the deposit of the paycheck. When you have completed two months of transactions, you will use that information to set a reasonable budget. ©2012 National Endowment for Financial Education | Lesson 5-1: Checking Accounts