checking and banking 9.27.13
DESCRIPTION
Unit Goals Write checks Maintain check registers Reconcile bank statementsTRANSCRIPT
![Page 1: Checking and Banking 9.27.13](https://reader036.vdocuments.site/reader036/viewer/2022062311/5a4d1b607f8b9ab0599acdac/html5/thumbnails/1.jpg)
Checking and Banking9.27.13
![Page 2: Checking and Banking 9.27.13](https://reader036.vdocuments.site/reader036/viewer/2022062311/5a4d1b607f8b9ab0599acdac/html5/thumbnails/2.jpg)
Unit Goals Write checks Maintain check registers Reconcile bank statements
![Page 3: Checking and Banking 9.27.13](https://reader036.vdocuments.site/reader036/viewer/2022062311/5a4d1b607f8b9ab0599acdac/html5/thumbnails/3.jpg)
Quick Facts… More than ___% of teens have a savings
account ____% of teens 16-17 have a checking
account. ____% of those 18-19 have one. Only ____% of teens 16-17 have a debit
card. ____% of those 18-19 have one. ____% of teens 16-19 have their own
credit card
![Page 4: Checking and Banking 9.27.13](https://reader036.vdocuments.site/reader036/viewer/2022062311/5a4d1b607f8b9ab0599acdac/html5/thumbnails/4.jpg)
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
![Page 5: Checking and Banking 9.27.13](https://reader036.vdocuments.site/reader036/viewer/2022062311/5a4d1b607f8b9ab0599acdac/html5/thumbnails/5.jpg)
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
![Page 6: Checking and Banking 9.27.13](https://reader036.vdocuments.site/reader036/viewer/2022062311/5a4d1b607f8b9ab0599acdac/html5/thumbnails/6.jpg)
Advantages Convenient way to pay bills Writing check is safer than using cash 24 hour access to ATMs, Online banking
![Page 7: Checking and Banking 9.27.13](https://reader036.vdocuments.site/reader036/viewer/2022062311/5a4d1b607f8b9ab0599acdac/html5/thumbnails/7.jpg)
Sample Check
Routing Account Check
![Page 8: Checking and Banking 9.27.13](https://reader036.vdocuments.site/reader036/viewer/2022062311/5a4d1b607f8b9ab0599acdac/html5/thumbnails/8.jpg)
A Check’s Process1. Payee cashes check2. Bank that cashed check returns it to
your bank3. Your bank withdraws money from
your account CLEAR Stamp
![Page 9: Checking and Banking 9.27.13](https://reader036.vdocuments.site/reader036/viewer/2022062311/5a4d1b607f8b9ab0599acdac/html5/thumbnails/9.jpg)
Cancelled Checks Check that bears the bank’s stamp,
indicating it has cleared
![Page 10: Checking and Banking 9.27.13](https://reader036.vdocuments.site/reader036/viewer/2022062311/5a4d1b607f8b9ab0599acdac/html5/thumbnails/10.jpg)
Overdraft Check written for more money than your
account contains Check is considered “bounced” Bank fee ($30) Bad check list
![Page 11: Checking and Banking 9.27.13](https://reader036.vdocuments.site/reader036/viewer/2022062311/5a4d1b607f8b9ab0599acdac/html5/thumbnails/11.jpg)
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
![Page 12: Checking and Banking 9.27.13](https://reader036.vdocuments.site/reader036/viewer/2022062311/5a4d1b607f8b9ab0599acdac/html5/thumbnails/12.jpg)
Checkbook Register Where you record all checking account
transactions Deposits Written checks ATM withdrawals Transfers
![Page 13: Checking and Banking 9.27.13](https://reader036.vdocuments.site/reader036/viewer/2022062311/5a4d1b607f8b9ab0599acdac/html5/thumbnails/13.jpg)
Checkbook Register Practice 9/1/12 Deposit $100.00 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
$47.00. Your account at Sprint is #30334.
9/4/12 Your paycheck is deposited for $250.00.
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 $20.00
from your grandma.
![Page 14: Checking and Banking 9.27.13](https://reader036.vdocuments.site/reader036/viewer/2022062311/5a4d1b607f8b9ab0599acdac/html5/thumbnails/14.jpg)
Endorsing Checks 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
![Page 15: Checking and Banking 9.27.13](https://reader036.vdocuments.site/reader036/viewer/2022062311/5a4d1b607f8b9ab0599acdac/html5/thumbnails/15.jpg)
Blank Endorsement Signature of payee written exactly as
the name on the front Only sign at the bank!
![Page 16: Checking and Banking 9.27.13](https://reader036.vdocuments.site/reader036/viewer/2022062311/5a4d1b607f8b9ab0599acdac/html5/thumbnails/16.jpg)
Restrictive Endorsement Restricts/ limits check use
“for deposit only” Then sign Recommended for mailing checks!
![Page 17: Checking and Banking 9.27.13](https://reader036.vdocuments.site/reader036/viewer/2022062311/5a4d1b607f8b9ab0599acdac/html5/thumbnails/17.jpg)
Special Endorsement Sign check over to someone else
“Pay to the order of ____________” Then sign it
![Page 18: Checking and Banking 9.27.13](https://reader036.vdocuments.site/reader036/viewer/2022062311/5a4d1b607f8b9ab0599acdac/html5/thumbnails/18.jpg)
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
![Page 19: Checking and Banking 9.27.13](https://reader036.vdocuments.site/reader036/viewer/2022062311/5a4d1b607f8b9ab0599acdac/html5/thumbnails/19.jpg)
Reconciliation Reconciliation- match your check
register balance with your bank statement balance.
Process of balancing your checkbook register with the bank statement
![Page 20: Checking and Banking 9.27.13](https://reader036.vdocuments.site/reader036/viewer/2022062311/5a4d1b607f8b9ab0599acdac/html5/thumbnails/20.jpg)
Reconciliation Outstanding Checks/ Deposits
Checks or deposits that you have recorded in your check register yet are not shown on your latest bank statement
![Page 21: Checking and Banking 9.27.13](https://reader036.vdocuments.site/reader036/viewer/2022062311/5a4d1b607f8b9ab0599acdac/html5/thumbnails/21.jpg)
Formula for ReconcilingEnding 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
![Page 22: Checking and Banking 9.27.13](https://reader036.vdocuments.site/reader036/viewer/2022062311/5a4d1b607f8b9ab0599acdac/html5/thumbnails/22.jpg)
Reconciliation Practice Ending bank statement bal. $1000 Ending check register bal. $1200 Outstanding deposits $400 Outstanding checks $200 Interest $5 Service charges $5