1. Balancing your Checkbook
© Family Economics & Financial Education – Revised February 2008 – Financial Institutions Unit – Electronic Banking
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

2. Monthly Statement
Lists each monetary transaction and the current account balance for a specified time period
Includes:
Dates
Identification for each transaction (number or type, date, amount)
Transaction amounts for withdrawals and/or deposits
Interest earned (if applicable)
Fees or charges (if applicable)
© Family Economics & Financial Education – Revised February 2008 – Financial Institutions Unit – Electronic Banking
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

3. Reconciling a Checking Account
Reconcile
Balance the checkbook register each month to the balance shown on the statement
Knowing the correct balance can help to avoid bouncing checks
© Family Economics & Financial Education – Revised February 2008 – Financial Institutions Unit – Electronic Banking
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

4. Steps for Reconciling
Make sure every transaction matches the check register
Place a check next to each transaction that has cleared
Do this for both withdrawals and deposits
Identify any outstanding transactions in the check register
© Family Economics & Financial Education – Revised February 2008 – Financial Institutions Unit – Electronic Banking
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

5. Steps for Reconciling continued
Start with checking account balance on the statement
Add any outstanding deposits
Subtract any outstanding withdrawals
Compare this result with the current balance in the check register
They should be the same
© Family Economics & Financial Education – Revised February 2008 – Financial Institutions Unit – Electronic Banking
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

6. Check 21 Check 21- Law created to transfers checks electronically
This eliminates most or all of the time between writing the check to when the money is withdrawn from the account
Checks can be processed as quickly as a debit card
© Family Economics & Financial Education – Revised February 2008 – Financial Institutions Unit – Electronic Banking
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

7. Take Charge of Your Finances
Electronic Banking
Take Charge of Your Finances
© Family Economics & Financial Education – Revised February 2008 – Financial Institutions Unit – Electronic Banking
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

8. Electronic Banking
Electronic Funds Transfer (EFT) is the electronic movement of money
E-banking allows a person to make withdrawals, deposits, and bill payments by one of the following methods:
Phone
Computer
Automated teller machine (ATM)
Point of sale terminal (POS)
© Family Economics & Financial Education – Revised February 2008 – Financial Institutions Unit – Electronic Banking
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

9. Electronic Banking Benefits of e-banking include: 24 hour access
Fast transactions
Paperless transactions
Convenience
Worldwide access
© Family Economics & Financial Education – Revised February 2008 – Financial Institutions Unit – Electronic Banking
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

10. Debit Cards
plastic cards that are electronically connected to a card holder’s bank/CU accounts.
Money is automatically withdrawn from the designated account when a purchase is made.
© Family Economics & Financial Education – Revised February 2008 – Financial Institutions Unit – Electronic Banking
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

11. Personal Identification Numbers
Debit cards require the use of PIN
(PIN) is a number that is entered in at an (ATM) or Point of Sale Terminal (POS)
This confirms that the individual is authorized to access that particular account.
© Family Economics & Financial Education – Revised February 2008 – Financial Institutions Unit – Electronic Banking
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

12. Consumer Liability
According to the Federal Trade Commission, a consumer is held liable for any unauthorized charges under the following conditions:
notice is given within two business days:
The consumer is held responsible for no more then $50.
notified within the first 60 days:
The consumer is held liable for no more then $500.
If the institution is notified after the first 60 days:
The consumer is held liable for the amount of the unauthorized transfers.
© Family Economics & Financial Education – Revised February 2008 – Financial Institutions Unit – Electronic Banking
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

13. Debit Card Downfalls Does not build credit history
Always have money source available
Must keep accurate records
Car rentals- no insurance coverage through debit
Must buy extra insurance coverage
Some companies will not rent car with debit
Courtesy overdraft protection
Debit cards can be used when there is not enough money in the account
results in a non- sufficient fund fee
© Family Economics & Financial Education – Revised February 2008 – Financial Institutions Unit – Electronic Banking
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

14. Overdraft protection
Overdraft protection- mini loans made by banks to cover negative balance charges
incredibly expensive
Most purchases that force overdraft loans are for small purchases,
The median overdraft loan is $14.75.
The average fee is more than double that amount.
can be as high as 20,000% profit for bank
© Family Economics & Financial Education – Revised February 2008 – Financial Institutions Unit – Electronic Banking
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

15. Ways to cover overdraft
Possible cost for each overdraft*
Good account management- $0
Link to savings account- $5
Link to line of credit- $15 annual fee + 12% APR
Courtesy overdraft protection- $20 to $30 per transaction
© Family Economics & Financial Education – Revised February 2008 – Financial Institutions Unit – Electronic Banking
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

16. Risks of Debit Cards Theft can wipe out Checking account
Gas stations routinely block a card in advance for the estimated cost of purchase. ($50.00-$100.00)
May take 1-2 days to unblock your money
Risk of overdraft fees or declined purchases
© Family Economics & Financial Education – Revised February 2008 – Financial Institutions Unit – Electronic Banking
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

17. How can you lower the risk of using a Debit card?
Use cautiously online
Defective goods hard to return
They already have your money
Never let card leave your sight
Paying at a restaurant
Could copy info
Protect PIN #
Memorize
Cover key pad
© Family Economics & Financial Education – Revised February 2008 – Financial Institutions Unit – Electronic Banking
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

18. Automated Teller Machines (ATM)
Transactions allowed may include:
Deposits
Cash withdrawals
Transfers between accounts
Account balance information
© Family Economics & Financial Education – Revised February 2008 – Financial Institutions Unit – Electronic Banking
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona