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Published byBertha Goodman Modified over 9 years ago
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Identify and define the types of accounts available. Analyze account management strategies Correctly fill out a check, deposit slip, and check register Correctly reconcile a bank statement Banking in the 21 st Century
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Types of Accounts Basic checking Free Checking Interest-bearing Joint Checking Express Lifeline Senior/student Money Market
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Basic Checking Use to pay bills Use a debit card to pay for daily expenses Direct deposit or minimum balance required to avoid fees Limited # of checks per month Per item fee for exceeding the limit
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Free Checking No monthly service charges or per-item fees regardless of balance or activity Fees for overdrafts
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Interest-bearing Minimum balance required to open Higher balance required to avoid fees Pays a low interest rate
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Joint Checking Owned by two or more people Both have equal access to the account Good Bookkeeping essential High fees for overdrawn accounts
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Express Checking Bank primarily by ATM, telephone or personal computer Unlimited check writing Low minimum balance Low or no monthly fees Limited access to live teller
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Lifeline No-frills account for low income people Low fees Low or no minimum balance Allow a # of checks to be written each month Required by law in some states
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Senior/Student Account Special deals for seniors or students Free checks Free ATM use Various discounts
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Money Market Combines Checking and Saving High minimum deposit to open Higher interest rate Limited checks per month (3-5)
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Which Account is for Me? How many checks do you write each month? Do you want to maintain a minimum balance to avoid fees? Do you bounce checks occasionally Do you need a mailed statement each month? Are you comfortable online or do you want a person to talk to?
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Label the parts of a check 1. 7. 3. 4. 5. 6. 2. Check # Amount Signature (Payor) Account # Routing # Written Amount Payee 8.Date
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Checking Terms to know Debit Credit Outstanding Check or Deposit Reconcile a statement Endorsement Account Balance item that doesn’t show on your statement or that hasn’t yet been processed by the financial institution The amount of $ in the account. amount subtracted signing the back of a check matching your records to the financial institution’s records amount added
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Steps to Reconciling Your Account 1. Compare Account Statement to Check Register Check off the items that match in the register and on the statement 2. Record any outstanding checks, deposits or fees in the register and on the reconciling worksheet. 3. Complete the reconcile worksheet The balance in your check register should now match the balance on your statement reconcile worksheet. If the numbers don’t match up, try again.
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