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3. 3 2. What are check OVERDRAFTS and how can this impact my account and other accounts? 1. Why should I maintain a check register? 3. How do I reconcile a checking account?

4. Deposits Payments Withdrawals Put $ In Take $ Out Pay Your Bills

5. Slide 1 - Checking Account Terms Lesson Reference: Basic Banking Services, Activity 3 – Handout 1 Bank Statement Cancelled Check Check Register Bank Statement Cancelled Check Check Register Outstanding Transactions Overdraft Outstanding Transactions Overdraft 5 Checking Terms 5

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7. Slide 1 – Check 21 Lesson Reference: Basic Banking Services, Activity 6 – Handout 1 You want to make sure you always have enough money in your account to cover 7 7 Why is it important to maintain a balanced checking account? $ coming out of your account …

8. Slide 1 – Check 21 Lesson Reference: Basic Banking Services, Activity 6 – Handout 1 8 8 checks ATM withdrawals Debit card purchases

9. Slide 1 – Check 21 Lesson Reference: Basic Banking Services, Activity 6 – Handout 1 9 9 YouFred What Happens After You Give a A Birthday Check to Your Best Friend, Fred?

10. Slide 1 – Check 21 Lesson Reference: Basic Banking Services, Activity 6 – Handout 1 10 You Fred Fred’s Bank Your Bank Fred’s Bank gets the $ from Your Account

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17. OVERDRAFTS AND BOUNCED CHECKS Slide 6 – Overdrafts and Bounced Checks Lesson Reference: Basic Banking Services, Activity 6 – Overhead 1 17 Overdrafts and bounced checks occur when you complete a financial transaction (e.g., write a check) for more than what is available in the account. Your financial institution may pay the amount and charge you a fee, known as an “overdraft fee” or a “nonsufficient funds fee.” Tip: Avoid overdraft or non-sufficient funds fees by making a habit of monitoring the balance in your checking account. See if your bank offers overdraft protection, where the bank will cover any overdrafts by pulling from a savings account.

18. WHAT IS A CHECK REGISTER? 18 AND YOUR CURRENT ACCOUNT BALANCE A RECORD YOU KEEP OF ALL YOUR TRANSACTIONS

19. KEEPING A CHECK REGISTER 19

20. teens 2 – lesson 6 - slide 6-3b Debit / Check Card Check Transaction ATM Card

21. RECONCILING A BANK STATEMENT 21

22. Step 1: Get the current balance from your bank statement. Step 2: Add deposits recorded in your check register that are not on this statement. Step 3: Subtract outstanding checks. These are checks you have written that have not yet cleared the banking system. Teens 2 – Lesson 6 - Slide 6-3e

23. Compare the bank balance and the checkbook balance. They should be the same! Teens 2 – Lesson 6 - Slide 6-3e Step 4: Correct any errors in your checkbook (you added wrong, you missed a check or debit card, etc.)

24. 24 Don’t get lost in the crowd!