1. Checking and Banking

2. Unit Goals Write checks Maintain check registers
Reconcile bank statements

3. Quick Facts… More than ___% of teens have a savings account
____% of teens have a checking account. ____% of those have one.
Only ____% of teens have a debit card. ____% of those have one.
____% of teens have their own credit card

4. Checking Account
Checking Account: Account that allows depositors to write checks and make payments
Check: Written order to a bank to pay the state amount to the person/ business (payee) named on it

5. Responsibilities Write checks carefully
Keep accurate records of checks written and deposits made
Verify accuracy of bank statement you receive each month
Maintain sufficient funds in your account to cover all written checks

6. Advantages Convenient way to pay bills
Writing check is safer than using cash
24 hour access to ATMs, Online banking

7. Sample Check
Routing
Account
Check

8. A Check’s Process Payee cashes check
Bank that cashed check returns it to your bank
Your bank withdraws money from your account
CLEAR Stamp

9. Cancelled Checks
Check that bears the bank’s stamp, indicating it has cleared

10. Overdraft Check written for more money than your account contains
Check is considered “bounced”
Bank fee ($30)
Bad check list

11. WI Bad Check Law Class A Misdemeanor
Repay amount of check in full as well as any legal fees incurred
Up to 1 year jail time and $1000 in fines

12. Checkbook Register Where you record all checking account transactions
Deposits
Written checks
ATM withdrawals
Transfers

13. Checkbook Register Practice
9/1/12 Deposit $ to open your account.
9/2/12 Transfer $25.00 from your savings account into your checking account.
9/3/12 Write check #101 to Sprint for $ Your account at Sprint is #30334.
9/4/12 Your paycheck is deposited for $
9/5/12 You buy lunch for $15.00 using your debit card.
9/6/12 Write check #102 to Holmen High School for a sweatshirt you bought for $25.00.
9/7/12 You deposit a check for $ from your grandma.

14. Endorsing Checks 3 types
Check can’t be cashed until it is endorsed (signed)
No more than 1.5 inches from top edge of the back of the check
3 types
Blank
Special
Restrictive

15. Blank Endorsement
Signature of payee written exactly as the name on the front
Only sign at the bank!

16. Restrictive Endorsement
Restricts/ limits check use
“for deposit only”
Then sign
Recommended for mailing checks!

17. Special Endorsement Sign check over to someone else
“Pay to the order of ____________”
Then sign it

18. Deposit Slip
Form you fill out when depositing any or all of the 3 c’s (cash, check, coin) into your checking account
3 c’s- cash received= net deposit

19. Reconciliation
Reconciliation- match your check register balance with your bank statement balance.
Process of balancing your checkbook register with the bank statement

20. Reconciliation Outstanding Checks/ Deposits
Checks or deposits that you have recorded in your check register yet are not shown on your latest bank statement

21. Formula for Reconciling
Ending Bal. of Bank Statement +Outstanding deposits - Outstanding checks _____________________________ Adjusted balance on Bank Statement
Ending Bal. of Checkbook Register + Interest from bank statement - Service charges/ fees ___________________________ Adjusted ending balance on checkbook register

22. Reconciliation Practice
Ending bank statement bal. $1000
Ending check register bal. $1200
Outstanding deposits $400
Outstanding checks $200
Interest $5
Service charges $5