1. BANKING AND YOUR CHECKING ACCOUNT For your Green backs

2. U. S. Federal Mint  U.S. Federal _____ operating bureau of the Department of the Treasury makes ________.  U.S. Bureau of Engraving and Printing prints new currency.  New coins and currency are sent to the _________________ which distributes as needed.

3. Federal Reserve  The FED uses _________ to regulate the nation’s money supply.  Provides __________ to depository institutions.  ________ and _______ most large banks.  Formulates and implements money policy.

4. Cash cards  Consumers purchase cash cards for a ______________.  Money is _____ and _______ on the card’s memory.  Money can be spent.  Some merchants allow customers to reloaded money on the cash cards.

5. Depositing large amounts of money  If a person makes a deposit of _______ or more into a bank account, the bank must notify the ____________________.

6. What is a Series EE savings bond?  Series ___________ are issued by the ____________.  They can be purchased for one-half of the face value.  Earn interest monthly  Buy a $50 Series EE bond for $25  Within 17 years is guaranteed to reach face value of ______!

7. How can you earn interest on your money?  Certificates of deposit “CD” – ____ liquid  Earns higher _______ ____ than Money Market or Savings accounts.  Larger amounts of money deposited for a period of time for a fixed interest rate. Cannot be withdrawn without penalty! 31 days to 8 years Can be rolled over into another CD Must pay ______ on interest earned

8. How can you earn interest on your money?  Money market account – ____ liquid  Earns ______ interest rate than Savings accounts  ____ amount of money deposited for a ____ period of time for a ____ interest rate.  Must pay _____ on interest earned.

9. How can you earn interest on your money?  Savings account – _________  Earns ____ interest than Certificates of deposit and Money market with ___ fixed period of time.  Must pay ____ on interest earned.

10. Safe-Deposit Box  Safe-Deposit box is a metal box in a bank’s vault  Requires _ keys 1 required by bank 1 required by customer/owner  Only owner can access box  Pay a ___ to rent  Store _______ papers – Mortgage Loan Papers

11. Automated Teller Machine  No fees if you use ____ own bank  Personal Identification Number “___”  Keep it ____!

12. Checking Accounts

13. Why use a Financial Institution Money deposited is insured – Banks: ____ insured – Credit Unions: _____ Savings will earn interest while the depository institution “uses” the money to make _____ Most funds are “____” – you can convert them to cash _____ and ______. CDs are less liquid than savings and checking.

14. Services Offered at Financial Institutions Savings accounts – _____ interest Certificate of Deposit (CD) Checking accounts – may or may not earn interest Debit Card / ATM Card Bill Payment ____ (Individual Retirement Account) – _____ Credit Cards (discussed later) Loans – Mortgage, Personal, Automobile (discussed later) Other services such as safe deposit boxes, financial advice, etc.

15. Savings Accounts Compound interest: interest _____ on interest Rate of Return: the APR (______________) received on money saved – $1000 earning $20 a year in interest has a 2% rate of return ($20 is 2% of $1000). Most savings accounts pay interest ________ (4 times a year). Interest is __________. __________________: money received today is worth more today than the same amount of money received sometime in the future – To determine the time value of depositing money in a savings account, you need to know the ________ and _________. If the inflation rate is higher than the interest rate, the money will be worth ____ at the end of the year than at the beginning. Savings Bonds – Series EE – purchase at ½ the face value and when they mature, they are worth the entire face value. Pay interest for 30 years.

16. Rule of 72 Easy way to calculate how fast your savings will ____________ at given interest rates The formula is ___ divided by the _____ rate earned. For example, at 10%, $100 will double in a little over 7 years (72/10 = 7.2 years). – How long would it take $100 to double at a rate of 2%? – http://www.investopedia.com/video/play/rule-of-72/ http://www.investopedia.com/video/play/rule-of-72/

17. Certificate of Deposit (CD) ____ are savings instruments that require a deposit for a period of time during which there is a penalty for withdrawals. Issued with an interest rate that is fixed for the term of the deposit. This makes them the most predictable. Typically pays the ______ rate of interest because it is “_________” for a specified time. If interest rates are predicted to ____ in the future, you may want to invest in a _______, fixed rate CD. CD terms range from days to months to years.

18. Checking Accounts Some accounts pay interest (________________) but they may require a _________ balance and/or limit the amount of checks written Most banks do not _____ the checks written to you but they must maintain a copy (this saves them money) When making a deposit, list the checks and cash separately on the deposit slip. Checks are normally “_____” (not available as funds) for ____ days. Cash is immediately available for use. Checks are proof of payment so make sure you ____ them! Personal checks will be paid by the bank as long as there is money in the _____ (if not, you are ______ an insufficient funds fee ($35.00) and the check is not honored) If your balance does not match the bank’s balance, determine that checks already written have ______. If there is still an error, let the bank know so they can investigate.

19. Checks Checks are the method in which you make _________ to your checking account ______ endorsements (you sign the back of the check with just your signature) can be cashed by anyone. _________ and _________ checks are bank checks and the funds are _______. Personal checks are not guaranteed (may not have the money in the account). _________ are purchased to pay a specified amount to a specific person. They are sold for a fee. Paychecks are normally ______ deposit – money is available sooner than if you had to deposit it in person. Cashing a check somewhere other than your bank may incur _____.

20. Debit/ATM Cards Using an electronic device (such as an ___) to make debits (withdrawals) or credits (deposits) is a form of electronic funds transfer (___). Purchases made with your debit card are _______ immediately from your checking account. Debit cards expose you to a greater likelihood of _____________. If you lose your debit or ATM card, notify the bank ________. If reported within __ business days, you are only liable for up to ____ in unauthorized purchases. After ___ days, you may be liable for the ___________! Using an ATM requires a PIN (personal identification number). Your pin should be a random selection of letters and numbers but something you can remember (never write it down and carry it with you). _____________ your PIN! Using another bank’s ATM or store ATM will result in ____.

21. Cash/Gift Cards Cash cards can be _________ or ________ with money to be used to pay for goods and services. Examples of cash cards are _________ (reloadable), _________ (reloadable), ___________ (disposable), etc. Cash cards are not the same as debit cards since they are not ____ to a bank account.

22. Bill Payment / Funds Transfer Bill Payment or funds transfer is a form of EFT. Setting up _______________ is a good way to pay fixed amount bills such as mortgage payments, car payments, tuition payments, etc. Setting up an automated transfer from checking to savings each month is a good way to establish a __________.

23. Individual Retirement Accounts You can set up an IRA at a bank or credit union in addition to brokerages. IRAs are intended to be used at _________. There is a ____ _______ on any money ________ before the age of ___. Roth IRAs have the __________ when the money is deposited; Traditional IRAs have the taxes paid when the money is ________ (at retirement). Both earn interest / dividends. The amount you contribute to a traditional IRA reduces your taxable income by the amount you __________. ____ accounts are usually retirement accounts at your job which you can contribute to as either pre-tax or after-tax income. Sometimes the employer will ________ up to a certain %.

24. Types of Checking Accounts  ______________ Checking  Designed for people who write a ____ checks each month and do not keep a minimum amount of money in the account  _______________  Account that earns interest on the balance  Requires a ________ amount in the account at all times

25. Tools for Checking Accounts  Check / Debit Card  Can be used _______ Visa & Mastercard are accepted  Instantly drafts payment from your account  Always sign or write “________” on the ____!  Check Book  Official check forms from the bank  Check Register  Used to ______ all checking transactions (debits, checks, deposits, transfers,, etc.)  Bank Statement  Official bank document listing all checking ________  Emailed or mailed every month

26. Types of Checks  Personal  ________  _________  __________ Click here to learn about the difference between each type of check.here

27. Certified Check  Certified Check is a check for which the bank ________ __________.  It is ______ by the bank  Funds to cover are immediately _______ from depositor’s account.

28. Elements of a Check  _________ : the owner of the account & the person who signs the check  _________ : the person to whom the check is written  _________ : the bank or financial institution that pays the check

29. Cashing Checks  Endorsing a check is ________ that you are the _______ listed.  _____ the line on the back of the check when you cash or deposit it.  You can also _____ _______a check to another payee. ENDORSE CHECK HERE X_____________________ ______________________ ______________________ ______________________ ______________________ ______________________ ______________________ DO NOT SIGN / WRITE / STAMP BELOW THIS LINE -------------------------------------------------------------------

30. Parts of a Check Today’s Date Name of Payee Amount Amount Spelled Out In Words PurposeSignature Name & Address of Bank

31. Writing Personal Checks  Use checks in _____ by ______  Always use the ______ date  Write the payee’s name ______ on the line labeled _________________  Write the amount to be paid in _______ figures after the printed dollar sign ___

32. Writing Personal Checks 5. ______ out in _____ the amount to be paid clearly on the line below the payees name 6. Indicate the _______ of the check on the line labeled For 7. ____ your check

33. Tips for Writing Checks  Write checks in ____  Only write checks if you have ________ ____ in your account to cover it  Use the _______ date

34. Tips for Writing Checks  Always fill in the _________  ____ checks on which you make an ______  Record _____ payment in your __________, including _____

35. Caution! If you are not careful with your checking account, you might incur service charges from the bank!  ________ – using more debits or writing more checks than the money available in your account  __________ - an order for a bank not to cash a particular check or set of checks

36. Reconciliation  Process of ______ your check ______ to your _______ bank ________  Verify that _____ and ______ balances ______

37. THEMINT.ORG Follow the directions to practice writing checks and learn how to track your checking account! http://www.themint.org/teens/writing- a-check.html http://www.themint.org/teens/balanc e-your-checking-account.html

38. HOW TO COMPLETE A DEPOSIT SLIP Watch the video on how to complete a deposit slip and then practice!