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Introductions

Introductions. Instructor and student introductions Module overview. Student Introductions. Your name Your expectations, questions, and concerns about checking accounts. Purpose. Check It Out will teach you how to use a checking account responsibly. Objectives.

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Introductions

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  1. Check It Out

  2. Introductions • Instructor and student introductions • Module overview Check It Out

  3. Student Introductions • Your name • Your expectations, questions, and concerns about checking accounts Check It Out

  4. Purpose Check It Out will teach you how to use a checking account responsibly. Check It Out

  5. Objectives By the end of this course, you will be able to: • State the benefits of using a checking account. • Determine which checking account is best for you. • Identify the steps involved in opening a checking account. Check It Out

  6. Objectives (Continued) • Add and withdraw money from a checking account. • Reconcile a check register with a bank statement. Check It Out

  7. Agenda and Ground Rules • 2 hours long • Two 10-minute breaks • Training methods • Class participation Check It Out

  8. Checking Accounts A checking account lets you write checks and use a debit card to: • Pay bills. • Make purchases. Check It Out

  9. Benefits of Checking Accounts • Convenience • Cost • Better money management • Safety Check It Out

  10. Convenience Checking accounts: • Give you quick and easy access to your money. • Let you “direct-deposit” payroll and other checks. • Eliminate the need to carry a lot of cash. Check It Out

  11. Cost Using a checking account is usually less expensive than using other services to cash checks or buy money orders. Check It Out

  12. Better Money Management Having a checking account lets you: • Keep a record of “transactions.” • Build a positive relationship with your bank. Check It Out

  13. Safety Having a checking account: • Is safer than carrying large amounts of cash. • Protects your checks and check card if they are lost or stolen. • Means your money is insured up to the maximum amount allowed by law. Check It Out

  14. How to Find the Right Checking Account • Get recommendations. • Answer the questions on the Determining Your Checking Account Needs Worksheet. Check It Out

  15. Fee Schedule Some common bank fees include: • Monthly service fee • Minimum balance fee • Automated Teller Machine (ATM) user fee • Overdraft fee • Stop payment fee Check It Out

  16. When a Checking Account Isn’t Right for You If you: • Don’t write many checks. • Tend to “bounce” checks. • Can’t find a checking account for which you can maintain the minimum balance. Check It Out

  17. Practice Exercise: Choosing the Right Checking Account Instructions: • Read each scenario carefully. • Indicate whether or not David should get a checking account. Be prepared to explain your answer. • Then read and answer the questions about fees a bank might charge. Check It Out

  18. Types of Checking Accounts • Free/low-cost checking • Electronic/ATM checking • Regular checking • Interest checking Check It Out

  19. Documents Needed to Open a Checking Account • Photo ID • Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN) • A deposit Check It Out

  20. Account Verification The bank or credit union reviews your checking account history to make sure that: • You will be a responsible customer. • No one is trying to steal your identity to open an account. Check It Out

  21. Signature Card The document that identifies and contains the signature of the owner of the account. Check It Out

  22. Two Ways to Use Money in Your Checking Account • Write a check. • Use electronic banking. Check It Out

  23. Steps to Writing a Check • Make sure you have enough money in your account. • Complete the blank spaces on the check. • Record the transaction in your check register. Check It Out

  24. YOUR NAME YOUR ADDRESS YOUR PHONE NUMBER 105 00-6879 770 _______ Date: PAY TO THE ORDER OF $ Dollars FINANCIAL INSTITUTION Your City, State, Zip Code Memo :00000000 : 0000 0000 0 000 0 0.: Sample Check 2 1 3 7 8 9 4 5 6 10 11 Check It Out

  25. Back of the Check DO NOT WRITE, STAMP OR SIGN BELOW THIS LINE RESERVED FOR FINANCIAL INSTITUTION USE * Check It Out

  26. YOUR NAME YOUR ADDRESS YOUR PHONE NUMBER YOUR NAME YOUR ADDRESS YOUR PHONE NUMBER 105 00-6879 770 105 00-6879 770 _______ _______ Date: Date: PAY TO THE ORDER OF PAY TO THE ORDER OF $ $ Dollars Dollars FINANCIAL INSTITUTION Your City, State, Zip Code FINANCIAL INSTITUTION Your City, State, Zip Code Memo Memo :00000000 : 0000 0000 0 000 0 0.: :00000000 : 0000 0000 0 000 0 0.: Sample Checks 2/26/20XX Coffee Mart 19.75 Nineteen and 75/100 Your signature coffeemaker Check It Out

  27. Electronic Banking Electronic banking uses computers to move money into and from your account. It includes: • Debit card transactions • Electronic bill pay • ATM transactions Check It Out

  28. Debit Card A debit card lets you: • Deposit cash into and withdraw it from your checking account. • Make purchases at retail locations. BE CAREFUL! The money is immediately taken out of your account. Check It Out

  29. Electronic Bill Pay A service that automatically takes money out of your account to pay your bills. • You don’t have to pay for postage. • You don’t have to worry about late payments. You can also use bill pay to make payments to businesses to which you owe money. Check It Out

  30. Automated Teller Machine (ATM) 3 2 1 4 Check It Out

  31. Four Ways to Add Money to Your Checking Account • Cash or check deposit using the teller service • ATM deposit • Deposit by mail • Direct deposit Check It Out

  32. Sample Deposit Slip Your Name Your Address Your Phone Number CURRENCY COIN DATE 3/22/20XX CHECKS DEPOSITTICKET DEPOSITS MAY NOT BE AVAILABLE FOR IMMEDIATE WITHDRAWAL OR TOTAL FROM REVERSE SIGN HERE IF CASH RECEIVED FROM DEPOSIT SUBTOTAL YOUR FINANCIAL INSTITUTION YOUR CITY, STATE Zip Code LESS CASH RECEIVED DO NOT USE FOR AUTOMATIC PAYMENT OR CHECK TRANSACTIONS NET DEPOSIT :00000000 : 00000 00000.: Check It Out

  33. Sign the Back of the Check DO NOT WRITE, STAMP OR SIGN BELOW THIS LINE RESERVED FOR FINANCIAL INSTITUTION USE * Check It Out

  34. Your Name Your Address Your Phone Number CURRENCY COIN DATE Check CHECKS DEPOSITTICKET DEPOSITS MAY NOT BE AVAILABLE FOR IMMEDIATE WITHDRAWAL OR TOTAL FROM REVERSE SIGN HERE IF CASH RECEIVED FROM DEPOSIT SUBTOTAL YOUR FINANCIAL INSTITUTION YOUR CITY, STATE Zip Code LESS CASH RECEIVED DO NOT USE FOR AUTOMATIC PAYMENT OR CHECK TRANSACTIONS NET DEPOSIT :00000000 : 00000 00000.: ENTER TOTAL ON THE FRONT OF THIS TICKET Sample Deposit Slip Front and Back Check It Out

  35. ATM Deposits • Similar to making an ATM withdrawal. • Use the special deposit envelope. • Remember to get a receipt. Check It Out

  36. Mail Deposits Include a deposit slip with the check. NEVER send cash through the mail. Check It Out

  37. Direct Deposit • Checks are deposited directly into your checking account. • Your money is available immediately. • It’s the safest way to receive your money. • Signing up is easy at your financial institution. Check It Out

  38. Keeping an Accurate Record of Checking Account Activity • Record all transactions. • Record maintenance fees, interest, and other bank charges. • Review the monthly checking account statement. • Reconcile your check register with your monthly checking account statement. Check It Out

  39. Checking Account Statement A record of all transactions made during the preceding month, including: • Cashed checks • All withdrawals and deposits • Debit card purchases • Fees Check It Out

  40. Reconciling Your Checking Account Finding the reasons for the difference between your checkbook register balance and the checking account statement balance caused by: • Transactions on the bank statement that weren’t recorded in the check register. • Transactions recorded in your check register that were made too late to appear on the bank statement. Check It Out

  41. CHECKS OUTSTANDING - NOT CHARGED TO ACCOUNT $ Check Number Check Amount $ Bank balance shown on this statement Total $ Subtract withdrawals outstanding $ Add deposits outstanding $ $ Balance $ *This balance should agree with balance in your check register. Total $ Checking Account Reconciliation Form Check It Out

  42. “Bad” or NSF Check A check you write when there isn’t enough money in your checking account to cover it. Check It Out

  43. Consequences of Writing Bad Checks • Bad check fees • Negative activity reported • Bank closes your account • Civil and/or criminal prosecution • Merchants may not accept your checks • Your credit may be impacted Check It Out

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