1. Chapter 17-3

2.  Convenient  Safe  Proof of payment  Record for financial management

3.  Two or more people have account together – joint account  When you deposit money into account use a deposit slip

4.  An endorsement is written evidence that you received payment or that you transferred the right to receive payment  Involves signing your name on the back of the left end of the check

5.  Blank endorsement  consists of only the endorser’s name.  Sign your name in ink exactly as it is written on the face of the check  Makes the check payable to anyone who has the check

6.  Full endorsement or Special  Allows you to transfer an check to another person  You write the words “Pay to the order of …..”  This is followed by your signature

7.  Restrictive Endorsement  Limits the use of the check to the purpose given in the endorsement  “For Deposit Only” above your signature  Restricts the use of the check to only being deposited in your account

8.  All check contain essentially the same information  Drawer is the owner of the account who signs the front of the check  Payee is the person to whom the check is written  Drawee is the bank or other financial institution that pays the check

9.  A place to record the account activities  Check stub is a form attached to the check by a perforated line  Check register is a separate book  Duplicate copy of check may also be automatically created when you write the check * Always fill out stub or register first then write the check

10.  Write checks in order by number so you know which checks have been paid  Write the date in the proper space  Write the payee’s name on the line following “Pay to the Order of “  Write the amount of the check in figures after the printed $ (Write the amount close to the $ to prevent someone from altering the check and write the cents close to the dollar figures)

11. http://www.moneyinstructor.com/wsp /writecheck.asp

12.  Write the dollar amount in words on the line below the payee’s name  Write cents in figures as a fraction of a dollar example: 25/100 is 25¢  Begin writing at the far left end of the line and draw a line from the fraction to the printed “Dollars” to fill all unused space  Write the purpose on the line at the bottom of the check  Sign the check!!!!!

13.  Write checks only on the forms provided by the bank  Write checks in ink  Only write checks if money is available. Writing checks for more than that will cause an overdrawn account.  Use current date. A postdated check is one that is dated later than the date on which it is written

14.  Avoid making checks payable to cash or bearer  Always fill in the amount  Void checks on which you make errors. Do not try to erase or retrace your writing  Record every payment from your checking account

15.  A written notice that tells the bank not to pay a certain check.  Because banks charge a high fee for stopping payment on a check, use only for good reason.

16.  At regular intervals, usually monthly, the bank will send you a report on the status of your account know as a bank statement.  Bank statement includes: 1. Balance at the beginning of the month 2. Deposits made 3. Checks paid by the bank 4. ATM transactions 5. EFTs 6. Service charges 7. Interest earned 8. Ending balance

17.  The balance per your records with most likely not agree with the banks balance  Some check you have written have not cleared (been paid). These checks are known as outstanding checks.  You may have forgotten to record ATM transactions  Service charges  Deposit not reach bank yet  interest

18.  Certified Checks – a personal check for which a bank has guaranteed payment  Cashier’s Check – a check that a bank draws on its own funds.  Traveler’s checks –special form designed for making payments when you are away  Money Order – a form of payment that orders the issuing agency to pay the amount printed on the form to another party.