Please…

1. Please… • Pick up a worksheet from the basket • Use the information from last week to complete this Bell Ringer AGENDA: 11:30-11:45: Bell Ringer 11:45 – 12:20: Checking Vocabulary/Notes 12:20 – 12:25: Break 12:25 – 1:00: Reconciliation Practice OUTCOMES: List checking vocabulary Properly fill out a check, a checkbook register, and a deposit slip Properly reconcile a checkbook

2. Question… • If you don’t want to use a credit card, what else can you do to take advantage of our “cashless society”?

3. Please… • Pick up a notes sheet from the basket • Complete the top portion labeled “Bell Ringer”

4. Credit Union – • A credit union is a cooperative financial institution that is owned and controlled by its members and operated for the purpose of providing credit at competitive rates, and providing other financial services to its members. Bank – • An institution that deals in money and provides other financial services. • Primary function of banks is to put their account holders' money to use by lending it out to others who can then use it to buy homes, businesses, send kids to college

5. Signature card – • A part of the application process for opening an account at a bank. The bank has you sign a signature card so that they can compare your signature with your signature on any checks or paperwork submitted to the bank. It helps to protect you and your account from fraud.

7. Minimum balance – • This is the minimum amount that you must keep in your bank account at all times. • Different types of checking accounts may require different minimum balance. • Some student accounts do not require any minimum balance.

8. Overdraft fee – • When you write a check, withdraw money from an ATM, use your debit card to make a purchase, or make an automatic bill payment or other electronic payment for more than the amount in your checking account • You may be charged an overdraft fee - $30, $40, $50.00. Withdrawal – • Money that is taken out of your account by going into the bank and asking for money or withdrawing amount from an ATM.

9. Deposit slip – • A slip or form that is filled out with your name, account number and a space for you to record the cash and/or checks that you are depositing.

10. Transfer – • Is an action taken to transfer funds from one account to another. Usually a transfer takes place between a checking and a savings account. Interest Rate – • Is the rate at which a bank will pay you to have your money in their checking or saving accounts. • Usually the rate is stated at APR – annual percentage rate.

11. Service Fees – • The fees a bank will charge you for various services they provide…to use your visa card, to process checks, new checks, etc. Debit Card – • Also known as a check card or a bank card, it can be used just like an electronic check. • The funds paid using a debit card are transferred immediately from your account

12. Credit Card – • A credit card that can be issued by your bank and when used, it charges the amount to your account • Your debit card/credit card can be one card and you are given to the option to use it in either way.

13. Check Register – • An area to record information about your transactions such as checks that you write, debit card or credit card transactions, ATM withdrawals.

14. Bank Statement – • A financial report that is prepared at the end of every month and tells you all the transactions which effected your account throughout the month. It shows you all your deposits, withdrawals, electronic payments, bills paid etc.

15. Bank Reconciliation – • Is the act of comparing what your bank says happened within your account to what you say happened within your account. • When completing the bank reconciliation you are comparing the two and then making changes (reconciling) them until they equal.

16. Payee – • The payee is the person that you are paying or writing the check to. Payor – • The payor is you, the account holder, the person whose account is going to be affected by the check.

17. Account Number – • Every bank account is assigned an account number. That account number is written on every check and deposit slip in order to identify your account within the bank. ABA Routing Number – • Number that is assigned to the bank institute and is written on every check and deposit slip so that the bank at which your account is located can be identified and the money can be retrieved from that particular bank.

18. Endorsement – • The way that you sign the back of the check when you going to cash or deposit the check. • There are three basic types of endorsements: • A blank endorsement is made by signing your name on the back of the check. You must sign it exactly the way it appears on the “Pay to the Order of” line. • Anyone can cash or deposit a check with a blank endorsement, even if the check is not written to him or her. You should only do a blank endorsement if you are cashing a check, and don’t sign it until you are at the financial institution.

19. Endorsements • A restrictive endorsement is made by writing “For deposit only” on the first line of the back of the check and then signing your name underneath. • A check with a restrictive endorsement can only be deposited into an account in your name. • A check is signed with a special endorsement when you want to give your check to another person. It is different from a blank endorsement in that the check can only be cashed or deposited by the person you are assigning the check to. • To do a special endorsement, write “Pay to the order of [name of person you are giving check to]”, and sign your name underneath.

20. check number numeric amount ABA number written amount name and address drawer or maker date account number payee memo

21. Writing Checks • A checking account is a service provided by financial institutions that allows you to deposit money with them and withdraw it at a later date • The safest place to keep your money is in a financial institution – banks and credit unions are insured, so within limits, even if your financial institution were to go out of business, you would not lose your money. • Types of accounts: • Individual • Joint • Senior/student/teen • Business

22. Checking Accounts • Although some institutions let you apply for a checking account online, most people apply in person at their local branch. Since opening an account can take several minutes, only go when you have plenty of time, • Remember to bring identification and funds to deposit with you.

23. Steps to fill out a check • Fill in today's date • Fill in the name of the individual or company you are writing the check to. • Fill in the amount of the check in numerals, with cents after the decimal. • Fill in the amount of the check in words, except for cents, which is written in cents/100. • This is an optional field to describe the reason for the check. For example, groceries. • Sign your name.

25. April 2, 2012 PPL Electric 112.53 One hundred twelve and 53/100 ------------------------------------ Melissa Mattie March Electric Bill

26. Check Writing • What do you do if you make a mistake on a check: • Small error – cross it out and write your initials above the mistake • Large error – write VOID across the whole check • Make sure to write in pen, not pencil • Checks that are written incorrectly will be returned to you, sometimes with a fee!

27. Using Checkbook Register • It is easy to forget about a check once it leaves your hands. To prevent this from happening, take the time to note at least the following for every check you write: • Check number (this alerts you if a check is missing in sequence) • Date you wrote the check • Who the check was written out to • What you wrote the check for • The amount of the check

28. Checkbook Register • Use the checkbook register to neatly keep and record all transactions. • The checkbook register also gives you a running total of the account balance. • Fill in the Check Register for: • Check #302 on March 17th, PPL Electric - $112.53 • Deposit of $1298.00 on April 3rd • Service charge $10.00 on April 26th

30. 302 3/17 PPL Electric 112.53 887.47 4/3 Deposit 1298.00 2185.47 4/26 Service Charge 10.00 2175.47

31. Other Types of Withdrawals • A debit card, also called a check card looks like a credit card, but it functions like a combination ATM card/check. • ATMs allow you to do many banking transactions, such as deposit checks, withdraw cash, and check your account balance. • When you insert your ATM card, you must enter your pin number • Either you will be given a pin number when you receive your card or have to create one before you can use it • Memorize your pin number, and do not share it with anyone or carry it in your wallet.

32. Online Bill Pay • Using on-line bill pay through your financial institution offers convenience – you can pay your bills through one website instead of having to log onto the individual websites of every service provider and lender. • Instead of writing a paper check to pay a bill, you: • Log into your checking account online • Input the amount that you want to send to your service provider, lender, or whoever else you need to pay. • Your financial institution will then either send an electronic check or • Print and mail a check for you.

33. Deposits • In order to deposit or cash a check, you first need to endorse it.

34. Deposit Slip • Fill in a deposit slip: • $260.50 Cash and Coins • Paycheck (check #34467) for $1040.55 • Rebate Check #4562 for $50.00 • Cash Back $25.00

36. 260 50 34467 1040 55 October 12, 2012 4562 50 00 Melissa Mattie 1351 05 25 00 1326 05

37. Review Questions • Please complete the Review Questions at the end • Place these notes in the “Turn In” Basket • Make sure your name is on it! • Take a quick stretch break!

38. For your agenda…. • Personal Finance Test • Wednesday • Financial Planning • Budgeting • Payroll Deductions (including tax calculations) • Credit Notes #1 (handwritten) and #2 (Typed) • Checking Notes (handwritten) ------------------------------------------------------------ Please place your checking notes in the basket (they will be returned to you either today or the beginning of class tomorrow)

39. Bank Reconciliation • Why is it a bad thing to just use your checkbook register to figure out how much money you have in your account? • You forget to record things • Banks can make mistakes • Some checks take forever to process (they don’t show up in your account right away) • This is why you can’t use your online statement either • Also, some people hold on to checks for months before they cash them • You are charged certain fees from the bank that may not show up in your register

40. Bank REconciliation • This is why we have to reconcile our checkbooks every month! • To do this, you will need: • Your checkbook register • Your bank statement (printed or online) • Bank Reconciliation statement from the bank

41. For the remainder of class… • Place your bank reconciliation packet in the basket • Locate all your notes for Wednesday’s test (print if you need to)