How many of you have checking accounts? How do you use them?

Why a checking account? Safety Convenience Record Keeping It is unsafe to carry around a large amount of money. CONVENIENCE you can write checks to pay bills set up payments for recurring bills (such as rent or mortgage or a car payment) to be automatically withdrawn (debited) from your account, so that you don't even have to write checks for those. RECORD KEEPING The canceled check (indicating that the check has gone to your financial institution and the sum has been drawn out of your account) is proof of payment. If a creditor believes he has not been paid, and you have paid him with a check, you can prove this by sending a copy of the canceled check (copy both the front and back) to the creditor. SAVING MONEY Checking accounts typically cost from $5.00 to $12.00 per month. Some financial institutions offer free checking, and others offer free checking if a minimum balance is maintained. Even with a fee, this is cheaper than paying for each money order ($.80 to $8.00) Saving Money $$$$

ICE Student 755 Pulaski Road Calumet City, IL 60409 Writing a check… Jan 29, 11 US Cellular 87.50 Eighty-seven and no cents Illiana Financial Credit Union 1600 Huntington Drive Calumet City, IL 60409 Date: record the date in which you write the check. Do not post-date checks. Payee: person or institution to which you write the check. Numerical amount: 87.50 if under a dollar put a “0” in front of the decimal point and insert the work cents ie “$0.85 cents” So that the amount cannot be altered, place the figures close to the dollar sign.

Use this to put account number on or what the check is for Written Amount: Write out the dollar amount, place the word “and” then put in the cent amount 35/100. If less than a dollar write “Only eighty-five cents” and draw a line through the word Dollars The written amount is the legal amount on a check if the numerical and written amounts differ. Memo Use this to put account number on or what the check is for Signature Match with your signature card Jan 29, 11 US Cellular 87.50 Eighty seven and 50/100 Cell phone Jennifer Donovan

Write the transaction in your check register right away. Number Date Description Pay Ment Amt (-) Tax Deposit Amt (+) New Balance  208 1/15 Best Image 57.13   189.31 DEP 1/17 Paycheck 304.50 493.81 209 1/21 The Safe and Secure Bank (Car Loan) 383.33 110.48 210 1/29 US Cellular – Cell phone bill 87.50 22.98 Write the transaction in your check register right away.

You need to deposit the following two checks and get cash back XYZ Corporation Payroll check number 02470383 1000 Corporation Court Pay Date: 01/26/11 New Town, USA 10000 Social Security No. 123-45-6789 Pay to the Emily Biegel $ 273.85 order of The amount TWO HUNDRED SEVENTY-THREE AND 85/100 DOLLARS ADP _Scott Bradford_________ AUTHORIZED SIGNATURE |’02470383”| |:043301627|: 1008448402|’ Endorse Here ___________________________ Do not write or sign below the line Reserved for financial institution use Blank Endorsement – most likely to be stolen Sign your name the same way it's written on the front of the check. Make certain to sign it only when you're ready to cash it or deposit the money into your account. Once the check is signed on the back (endorsed), if you lose it, someone else could get your money. Emily Biegel

Check #2 For Deposit Only Emily Biegel Grandma Pushover Check number 2389 911Emergency Lane Date: 01/26/11 New Town, USA 10000 Pay to the Emily Biegel $ 153.06 order of The amount ONE HUNDRED FIFTY-THREE AND 06/100 DOLLARS MEMO: Winter Ball Stuff Grandma Pushover_______ AUTHORIZED SIGNATURE |’2389”| |:043301627|: 1069448401|’ Endorse Here ___________________________ Do not write or sign below the line Reserved for financial institution use Restrictive Endorsement - Safest When you want your check to be very safe, like when you send it to your financial institution in the mail, use a restrictive endorsement. Write "for deposit only" and sign underneath. Now the check can only be deposited into your account, and not cashed For Deposit Only Emily Biegel What do your paychecks and Grandma’s check have in common? (look carefully!)

Routing Transit Number Why is it important to know these items? When may you use them? XYZ Corporation Payroll check number 02470383 1000 Corporation Court Pay Date: 01/26/11 New Town, USA 10000 Social Security No. 123-45-6789 Pay to the ICE Student________________________ $ 273.85 order of The amount TWO HUNDRED SEVENTY-THREE AND 85/100 DOLLARS ADP _Scptt Bradford_________ AUTHORIZED SIGNATURE |’02470383”| |:043301627|: 1008448402|’ Routing Transit Number ABA number is nine digits, which appears on the bottom of a check …this identifies which financial institution it is drawn upon. This code is also used by the Automated Clearing House to process direct deposits and other automated transfers. Account Number An individuals specific bank account number unique to that persons financial institution.

Making a Deposit Using the example above… ______Deposit Ticket _______ Your name Your Address Hometown, State 12345 Date: ___January 30, 2011___ __________________________ Sign here if cash received from deposit Safe & Secure Financial Institution in Your Community 05107373 873 9047 Cash Checks 02470383 273 85 2389 153 06 Total from other side Total 426 91 Less cash received 00 Net deposit Using the example above… Do I have to sign the DEPOSIT TICKET?

Deposit Slip when money is received from deposit ______Deposit Ticket _______ Your name Your Address Hometown, State 12345 Date: ___January 30, 2011___ _____Emily Biegel ___________ Sign here if cash received from deposit Safe & Secure Financial Institution in Your Community 05107373 873 9047 Cash Checks 02470383 273 85 2389 153 06 Total from other side Total 426 91 Less cash received 150 00 Net deposit 276

YOU MUST KEEP A RUNNING BALANCE IN YOUR CHECK REGISTER AT ALL TIMES! Number Date Description Pay Ment Amt (-) Tax Deposit Amt (+) New Balance  208 1/15 Best Image 57.13   189.31 DEP 1/17 Paycheck 304.50 493.81 209 1/21 The Safe and Secure Bank (Car Loan) 383.33 110.48 201 1/29 US Cellular – Cell phone Bill 87.50 22.98 1/30 Paycheck & Ck from Grandma 276.91 299.89 ATM 02/02 ATM 120.00 + 2.25 122.25 177.64 IMPORTANT YOU MUST KEEP A RUNNING BALANCE IN YOUR CHECK REGISTER AT ALL TIMES!

One Last Endorsement you need to know… Special Endorsement Do this when you want to give someone else the money. Write "pay to the order of" and that person's name below it. Then sign your name underneath. Now that person is the only one who can cash the check.

Your Check Register – Keeping a Running Balance Number Date Description Pay Ment Amt (-) Tax Deposit Amt (+) New Balance May 26th Balance   527.96 107 5/27 Mrs. Wilson – June Rent 226.00 301.96 DBT 5/28 Foodland 22.52 279.44 108 6/1 Bank of IL 156.32 123.12 Void Void of check 108 109 165.23 114.21

Reconciling What does reconciling mean. Why do you want to reconcile Reconciling What does reconciling mean? Why do you want to reconcile? What errors can be found?

Reconciling – you are comparing what the bank has received at a certain date with what you have in your check register Bank One Meadow Street Branch Hometown, State 12333 Your Name Account Number: 999 6584 1515 My Home Avenue Statement Covers: 8/1 - 8/31 Whiting, Indiana 46394 Total Deposit 1,650.00 Beginning Balance 500.00 Total Payments/Withdrawals 1,515.60 Ending Balance 627.96 Date Deposits 8/3 Customer Deposit 750.00 8/19 800.00 8/20 IRS - Tax Return Electronic Dep 100.00 8/31 August Interest Earned 3.56 Payments/Withdrawals 8/11 ATM Withdrawal (Whiting, In) 200.00 ATM Fee 1.25 8/17 ATM Withdrawal (Hammond, In) 1.00 Check 301 53.00 8/8 Check 302 70.00 Check 303 80.00 8/18 Check 304 257.35 Check 306 65.00 Check 307 88.00 Check 309   8/30 Maintenance Fee 10.00

Reconciling, step #2 List Outstanding Checks Outstanding Deposits Check Date/Number Amt. Date   Total Balance Your Checkbook 1. Review your statement for service charges and other transactions not recorded in your register. Bring your register up to date and enter your new balance here. $ With the Bank's Records 2. Enter ending balance from your statement 3. Enter amount of any outstanding deposits. 4. Add line 2 plus line 3 and enter sum. 5. Enter the dollar amt of total outstanding checks 6. Subtract line 5 from 4. This figure should agree with your new checkbook balance shown on line 1

endorsements To deposit a check, you need to endorse it. That means you sign your name in ink on the back of the check. You must sign your name the same way it's written on the check. If your name is spelled wrong, also sign your name the correct way on the next line. 1. Blank Endorsement – most likely to be stolen Sign your name the same way it's written on the front of the check. Make certain to sign it only when you're ready to cash it or deposit the money into your account. Once the check is signed on the back (endorsed), if you lose it, someone else could get your money. 3. Restrictive Endorsement - Safest When you want your check to be very safe, like when you send it to your financial institution in the mail, use a restrictive endorsement. Write "for deposit only" and sign underneath. Now the check can only be deposited into your account, and not cashed

Opening a Checking Account - Signature Card Answers the questions Who is authorized to make transactions on this account? Your First Bank 18555 Burnham Avenue Account Number ______________ Lansing, Il 60409 Date: _______________________ SIGNATURE AUTHORIZATION CARD Name: _________________________ Address: _______________________ ______________________________ Phone: ________________________ Social Security No. __ __ __ - __ __ - __ __ __ __ Your are hereby authorized to recognize any of the signatures subscribed here in the payment of funds or the transaction of any business for this account. It is agreed that all transactions between the bank and the depositor shall be governed by the contract printed on the reverse side of this card. ___________________________________ AUTHORIZED SIGNATURE w Type of account Individual Joint Business Partnership Always sign your checks the same way you sign the signature card Always use ink

Checking Accounts Shopping around for a checking account There are many differences between financial institutions and the services they offer, including the specifics of checking accounts. Here are some things to consider when shopping for a checking account: Location Availability of ATMs Branch Offices Hours of Operation Fees Monthly Fees (Balance Requirement) Per Check Fees Balance Inquiry Fees ATM Fees Other Charges Overdraft Charges Compounding Method Stop-Payment Fees Certified Check Fees Interest +Rate Earned Restrictions Minimum Balance, Minimum Deposit Requirement Deposit Insurance Holding Period for Deposited Checks Special Features Direct Deposit Automatic Payments Overdraft Protection Online Banking Discounts or Free Checking for Students, Seniors or Certain Companies

Common Charges Overdraft: when you write a check for more that you have in your account. It is known as “bouncing” a check. May be charged a NSF fee (non-sufficient funds fee can be charged this by the bank and by the place you wrote the check to) Stop-payment Fee: when you write a check and decide that you do not want the bank to disburse that money to the recipient