1. Checking Account Simulation Understanding Checking Accounts

2. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account Simulation Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman 1.7.1.G1 What is a Checking Account?  Tool used to transfer funds deposited into the account to make a cash purchase  Could also be named a transaction account  Common financial service used by many consumers  Available at banks

3. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account Simulation Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman 1.7.1.G1 Checking Accounts continued  Services and fees will vary depending upon the financial institution Research the financial institution and type of account before choosing  Many financial institutions offer telephone and internet banking services to customers

4. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account Simulation Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman 1.7.1.G1 Benefits  Can help to manage money  Written record of expenses Check register  Makes bill paying more convenient  Reduces the need to carry large amounts of cash  Most liquid of cash management tools Considered cash

5. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account Simulation Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman 1.7.1.G1 How Do They Work?  Money is deposited into the account with a deposit slip  Pay the transaction by: Writing a check Using an ATM and/or debit card Using electronic banking

6. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account Simulation Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman 1.7.1.G1 Characteristics  Funds are easily accessible through: A check Automated teller machine (ATM) Debit card Telephone Internet

7. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account Simulation Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman 1.7.1.G1 What is a Check?  Piece of paper pre-printed with the account holder’s: Name Address Financial institution Identification numbers  To completed check, fill in the: Amount Payee  To whom the check was written Date Signature  Used at the time of purchase as the form of payment

8. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account Simulation Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman 1.7.1.G1 Bouncing a Check  Check written for an amount over the current balance held in the account ‘Bounces’ due to insufficient funds  Assessed a substantial fee by both the financial institution and the payee  Can cause harm to credit report Financial institutions report to credit bureaus the account holder’s failure/success to manage his/her checking account properly  Used as a guide for future inquiries for credit

9. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account Simulation Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman 1.7.1.G1 Other Checking Components  Register Place to immediately record all monetary transactions for a checking account  Written checks, ATM withdrawals, debit card purchases, deposits, fees, etc.  Checkbook Contains the checks and the register to track monetary transactions

10. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account Simulation Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman 1.7.1.G1 ATM Fees  ATMs are owned by different financial institutions  Fees may be charged to the account for ATM use  Fees range from $0.50 to $5.00 Usually free to account holders of the financial institution

11. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account Simulation Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman 1.7.1.G1 ATM Card  Card given to account holder to make financial transactions at ATMs  In the shape of a credit card, but can only be used in designated places  Must use personal identification number (PIN) to access the account A protected number given or chosen by the account holder to allow access to the account

12. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account Simulation Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman 1.7.1.G1 Types of Accounts Available  Financial institutions offer different types of checking accounts All have own characteristics Research all of the requirements and restrictions before opening the account  Basic types/guidelines include: Regular checking Free checking Special checking Interest-Earning checking

13. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account Simulation Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman 1.7.1.G1 Regular Checking  No monthly charge if minimum balance is maintained  No interest is given  Unlimited check writing

14. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account Simulation Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman 1.7.1.G1 Free Checking  No charges or fees for using the account  No minimum balance required  Unlimited check writing  Usually for a specific group: Students Seniors

15. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account Simulation Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman 1.7.1.G1 Special Checking  Generally for people who write only a few checks and keep a low balance  Basic account which pays no interest  Monthly service charge or fee for each transaction  May have restrictions on number of transactions each month

16. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account Simulation Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman 1.7.1.G1 Interest-Earning Checking  Pays interest on money in account Usually the lowest interest rate of all the cash management tools  Minimum balance required  Unlimited check writing  Called a share draft at credit unions

17. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account Simulation Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman 1.7.1.G1 Opening a Checking Account  Most applications are completed on a computer to process quickly Customer may have to complete a brief hand-written application to be entered into the computer by new accounts personnel  Customer must have: Picture identification Name, address, phone number, and social security number

18. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account Simulation Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman 1.7.1.G1 Opening continued  If customer is approved, he/she completes a signature card Contains account information about the new account and his/her signature Used to verify the signature for each signed transaction for the account to prevent fraud  Completion of the signature card means the customer agrees to all terms and conditions of the account

19. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account Simulation Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman 1.7.1.G1 Signature Card example

20. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account Simulation Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman 1.7.1.G1 Opening continued  If offered, customers may choose to have an ATM and/or debit card for the account May be required to complete another form  An initial deposit must be made Amount will vary among different financial institutions and type of account

21. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account Simulation Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman 1.7.1.G1 Ordering Checks  New customers are provided starter checks to use until the ordered checks arrive Generic checks with account number and financial institution pre- printed Customer information is hand written  Many businesses do not accept starter checks Take this into consideration before making the initial deposit Ordered checks may take 5 to 10 business days to arrive

22. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account Simulation Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman 1.7.1.G1 Ordering continued  Personal information on checks Name Address Optional: phone number, driver’s license number DO NOT put the account holder’s social security number on the check for security reasons

23. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account Simulation Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman 1.7.1.G1 Ordering continued  Design of the check is customer’s choice Customer pays for checks  Price depends on the style Style of the check does not change how a check works Some financial institutions may offer basic checks free of charge  Single or duplicate checks are available

24. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account Simulation Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman 1.7.1.G1 Ordering continued  No records of written checks  Each check must be logged in the register immediately to track transactions  Provides a written record of each check with the carbon copy  Convenient in case the check was not recorded into register immediately Single Duplicate (carbon copy)

25. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account Simulation Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman 1.7.1.G1 Endorsing a Check  Endorsement Signature on the back of the check from receiving person approving it for deposit A check must be endorsed to be deposited  Three types Blank Restrictive Special  Safest way to endorse the check is to wait until going to the financial institution to deposit or cash the check

26. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account Simulation Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman 1.7.1.G1 Blank Endorsement  Receiver of the check signs his/her name  Anyone can cash or deposit the check after has been signed

27. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account Simulation Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman 1.7.1.G1 Restrictive Endorsement  More secure than blank endorsement  Receiver writes “for deposit only” above his/her signature Allows the check to only be deposited

28. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account Simulation Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman 1.7.1.G1 Special Endorsement  Receiver signs and writes “pay to the order of (fill in person’s name)”  Allows the check to be transferred to a second party Also known as a two-party check

29. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account Simulation Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman 1.7.1.G1 Making a Deposit  Deposit slip Contains the account holder’s account number and allows money (cash or check) to be deposited into the correct account Located in the back of the checkbook  Complete a deposit slip to make a deposit Give to financial institution along with cash and/or check Checks must be endorsed to be deposited  Deposited amount must be recorded in the check register to keep the balance current

30. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account Simulation Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman 1.7.1.G1 Completing a Deposit Slip  Date The date the deposit is being made

31. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account Simulation Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman 1.7.1.G1 Completing a Deposit Slip  Signature Line Sign this line to receive cash back

32. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account Simulation Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman 1.7.1.G1 Completing a Deposit Slip  Cash The total amount of cash being deposited

33. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account Simulation Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman 1.7.1.G1 Completing a Deposit Slip  Checks List each check individually  Identify each check on the deposit slip by abbreviating the name of the check writer

34. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account Simulation Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman 1.7.1.G1 Completing a Deposit Slip  Checks If more checks are being deposited than number of spaces on the front, use the back List each check Add the total, enter it on the front

35. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account Simulation Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman 1.7.1.G1 Completing a Deposit Slip  Total from Other Side The total amount from all checks listed on the back

36. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account Simulation Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman 1.7.1.G1 Completing a Deposit Slip  Subtotal The total amount of cash and checks

37. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account Simulation Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman 1.7.1.G1 Completing a Deposit Slip  Less Cash Received The amount of cash back being received This amount is not deposited into account

38. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account Simulation Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman 1.7.1.G1 Completing a Deposit Slip  Net Deposit The amount being deposited into the account To calculate the amount, subtract the cash received from the subtotal

39. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account Simulation Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman 1.7.1.G1 Writing a Check  To pay for items using a checking account A check is given as a form of payment Must be completed and given to the person or business  Pre-printed items on a check Name and address of account holder Name and address of financial institution Check number Identification numbers (account, routing)

40. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account Simulation Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman 1.7.1.G1 Writing a Check  Personal Information Account holder’s name and address May include a phone number, not required DO NOT list a social security number for safety reasons

41. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account Simulation Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman 1.7.1.G1 Writing a Check  Check Number Numbers used to identify checks Printed chronologically

42. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account Simulation Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman 1.7.1.G1 Writing a Check  Date The date the check is written

43. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account Simulation Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman 1.7.1.G1 Writing a Check  Pay to the Order of The name of the person or business to whom the check is being written

44. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account Simulation Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman 1.7.1.G1 Writing a Check  Amount of the Check in Numerals The amount of the check written numerically in the box Write the cents smaller and underline Write the numbers directly next the dollar sign to prevent someone else from adding numbers to change the amount

45. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account Simulation Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman 1.7.1.G1 Writing a Check  Amount of the Check in Words The amount of the check written in words on the second line Start at the far left of the line, write the amount in words, followed by ‘and’, and the amount of cents over 100; draw a line from the end of the words to the word ‘dollars’

46. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account Simulation Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman 1.7.1.G1 Writing a Check  Memo Space used to identify the reason for writing a check; optional Good place to write information requested by a company when paying a bill, generally the account number

47. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account Simulation Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman 1.7.1.G1 Writing a Check  Signature The account holder’s signature agreeing to the transaction

48. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account Simulation Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman 1.7.1.G1 Writing a Check  Identification Numbers First - routing numbers to identify the account’s financial institution Second - account number Third - check number

49. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account Simulation Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman 1.7.1.G1 Check 21  Check Clearing for the 21 st Century Act (Check 21) Current trend that changes how money is withdrawn from customers account and deposited into businesses account

50. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account Simulation Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman 1.7.1.G1 How Check 21 Works Prior to Check 21  Paper checks physically moved from customer to business to various banks and the transfer of money from customer’s bank to business’ bank took days After Check 21  Paper checks are scanned into a computer system at the place of business and immediately returned to the customer. This electronic copy of the check is called a substitute check. The substitute check is then transferred electronically to various banks and the transfer of money customer’s bank to business’ bank takes hours

51. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account Simulation Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman 1.7.1.G1 Check Register  Place to immediately record all monetary transactions for a checking account  Written checks, ATM withdrawals, debit card purchases, deposits, fees, etc.  Used to keep a running balance of the account  Remember - Record every transaction!

52. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account Simulation Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman 1.7.1.G1 Check Register  Date The date the check was written or transaction was made

53. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account Simulation Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman 1.7.1.G1 Check Register  Number The number of the written check; if a debit card or ATM was used, write DC or ATM

54. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account Simulation Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman 1.7.1.G1 Check Register  Description of Transaction The person/business the check was written to or where the debit card was used Gray line can be used to write the memo

55. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account Simulation Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman 1.7.1.G1 Check Register  Payment/Debit(-) Amount of the transaction Deducted from the balance

56. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account Simulation Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman 1.7.1.G1 Check Register  Deposit/Credit(+) Amount of the transaction Added to the balance

57. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account Simulation Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman 1.7.1.G1 Check Register  √ T A box used to track whether the check has cleared on the monthly bank statement when reconciling at the end of each month

58. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account Simulation Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman 1.7.1.G1 Check Register  Fee (if any) Any extra fees charged to the account Listed on the bank statement

59. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account Simulation Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman 1.7.1.G1 Check Register  Balance The running total of the checking account Calculated by adding or subtracting each transaction Keep this updated

60. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account Simulation Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman 1.7.1.G1 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)

61. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account Simulation Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman 1.7.1.G1 Monthly Statement continued  If customer holds more than one account at the same financial institution May receive one statement for both  For example: a checking and a savings account May be mailed separately

62. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account Simulation Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman 1.7.1.G1 Reconciling a Checking Account  Reconcile Balance the checkbook register each month to the balance shown on the statement  Do this every month to ensure the correct balance in the checkbook Knowing the correct balance can help to avoid bouncing checks

63. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account Simulation Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman 1.7.1.G1 Steps for Reconciling  Make sure every transaction listed on the statement matches the check register  Place a check next to each item once it has been double- checked between the statement and register Do this for both withdrawals and deposits  Identify any outstanding transactions in the check register Items which have not cleared through the financial institution and are not listed on the statement

64. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account Simulation Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman 1.7.1.G1 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

65. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account Simulation Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman 1.7.1.G1 Reconciling Example  Statement balance$204.00  Add $154.01+ Outstanding deposits  8/30 - $154.01  Subtract$44.75- Outstanding withdrawals  #299 - $19.75  #300 - $25.00

66. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account Simulation Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman 1.7.1.G1 Reconciling Example continued  Total$313.26  Remember - this figure should be the same as the check register  If not, double-check the math, look for mistakes Make sure all service fees and charges have been added to the check register

67. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account Simulation Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman 1.7.1.G1 Checking Account Safety  If a checkbook, ATM, and/or debit card becomes lost or stolen Immediately report it to the financial institution File a report with the police  Reported lost/stolen checkbook: Financial institutions generally do not hold the account holder liable for any fraudulent charges

68. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account Simulation Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman 1.7.1.G1 Safety continued  Reported lost/stolen ATM/debit card: Within 2 business days  Cardholder is only liable for $50.00 Longer than 2 business days  Could be liable for up to $500.00 Varies depending upon the financial institution  May not charge the account holder anything if the correct steps were taken to report the lost/stolen card

69. © Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account Simulation Funded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman 1.7.1.G1 Conclusion Research before choosing a financial institution and checking account! Follow the precautions to prevent checking account fraud! Report a lost/stolen checkbook, ATM, and/or debit card immediately!