1. Lesson #1 - How to write a check
Checking Accounts
Lesson #1 - How to write a check

2. Why open a checking account
Safety: you may not feel safe walking around with cash in your pocket. Stolen checks/atm cards can be replaced, stolen cash cannot.
Convenience: if you use an ATM card or checks you don’t always have to have cash to make a purchase. Also a bad idea to send cash through the mail.
Easier budgeting: When you use your check book you are keeping track of what you spend.
Proof of payment: Check is written proof that you made a payment to someone.
Cash in your pocket is too easily spent. May help you be less impulsive.

3. Easy to do-things to consider
Location: Find a bank that is convenient for you.
Fees: monthly fees, per check fee, cost of checks, atm fees, etc…
Other charges: overdraft, stop payment fees
Interest: rates earned, minimum deposit to earn interest, fee for falling below minimum balance.
Restriction: Minimum balance
Special features: Direct deposit, automatic payments, overdraft protection, online banking.

4. Now what??-Important to remember
When you sign a check you are agreeing to pay that specific amount on demand, like a contract.
If you write a check in which you do not have the specific funds for that check will “bounce”.
If you “bounce” a check you usually will have to pay a fee on top of paying that person the amount you owe them.
Many banks will also charge a $25 “returned check fee”.
If you bounce a check of $25 you may pay up to $75 for the purchase.
$25 (check) + $25 Overdraft +$25 “returned check fee” = $75

5. Precautions! Always write in ink
Once you endorse a check anyone can cash it. So do pre sign your checks
Keep unused checks in a place where others will not have easy access to them.
Check your statement regularly to make sure there was no unauthorized activity.

6. Debit Cards Increasingly popular alternative to writing checks.
When you open up a checking account you will receive a debit card in addition to a check book.
They’re more convenient.
Credit card: payment is received later on with a bill +interest.
Check card: payment is instantly taken out of your checking account.

7. The 6 parts of writing a check
Date: the date you are writing the check
Name or organization: Who are you writing the check to?
Amount in numerals: Numerical value of the check (ex: $50.00)
Amount in words: (Fifty Dollars)
Signature Line: Your signature, very important!!!!!
What is the transaction for: “memo” a note to yourself so that you know why you wrote the check.

8. 5 important features of a check
Your name and address
Check number in the upper right-hand corner
Account number in lower left-hand corner
Date the account was opened
Name and address of the bank

9. Vocabulary: Check stub: part of the check that is retained for a copy.
Void: to cancel out a check
Endorse: to sign the check
Debit: Money that comes directly out of your checking account
Balance forward: When the balance of your account from one page is carried to the next page
Credit: amount of $ the bank is letting you borrow.

11. Depositing money
A deposit slip contains the account holder’s account number and allows $ to be deposited into the account.
Checking acct deposit slips are located behind the checks in the checkbook.
Deposits are made at a bank with the teller or in an atm.
You must record your deposits to keep your checkbook current.

13. Using a debit card
Looks like a credit card but is electronically connected to the cardholders checking account for purchases.
When a purchase is made, $ is automatically deducted from the designated account.
Require a use of a Personal Identification Number (Pin)
When using an Atm not provided by the financial institution there may be fees ranging from $1.75-$3.50 or more.

15. Checking account safety
If you feel your number was stolen Immediately report it to the financial institution.
If you report it quickly you most likely will not be liable for fraudulent charges.
If reported within 2 days, you may only be liable for $50.00
If you wait you can be liable for up to $500
Will vary depending upon institution and if correct steps were taken.
Beware of scams – phone calls from “credit card companies” asking for pins, security numbers, etc…
Check your statements regularly, keep receipts.