Standard 4 Managing a Bank Account
Writing Checks/Using Debit Cards • Access the money in your bank account • Make purchases • Pay bills • Transactions are almost instant, so make sure you have the money in your account CHECK: written document ordering a financial institution to transfer money from your account to another DEBIT CARD: plastic version of a check
Why People Use Checks/DC • It’s not very safe or smart to carry too much cash • It’s impossible to replace lost/stolen cash • Checking accounts are safer and convenient • Most banks offer free bank accounts • Almost all bank accounts come with a debit card • Remember to write down every transaction. Save your receipt and record transactions.
Checks • Personalized with: name, address, phone number • Has bank’s name and information , check number, routing number, and account number • NEVER have SS# or Driver’s License # on your checks • Are legal documents and must be filled out correctly
Step 1 Step 2 Step 3 Step 4 Step 6 Step 5 Step 1: Write date in upper right hand corner Step 2: Write the name of the person/company receiving your check on the line that starts, “Pay to the order of” Step 3: Write down the dollar amount of the check in numbers in the small space with the “$” Step 4: Write the same amount using WORDS for whole dollar amounts and a fraction for the cents on the line ending with “Dollars”. Step 5: Sign your name on the lower right Step 6: If writing a bill, put account number on “Memo” line Step 7 & 8: Put in check register and subtract the amount
Assignment 415 4/15/2013 Great Department Store 42.39 Forty two & 39/100 John Doe Routing #
Step 1: Write down the date on the date line Step 2: If you’re depositing cash, write down that amount in the space following “currency” Step 3: If you’re depositing coins, write down that total amount in the space following the word “coin” Step 4: Write down each check, including the person/business it is from and the amount on a separate line and space Step 5: Total the amount of your deposit (cash, coins, checks) and write that amount in the space following “subtotal” Step 6: If you want to take out any cash received from the subtotal, write that amount in the space following the words “less cash received” Step 7: Subtract from subtotal under “net deposit”.
Managing Your Account • Write down every withdrawal or deposit into your account • Subtract all withdrawals (writing checks, using debit cards) and fees from your balance • Add all deposits Being overdrawn: you have used more money than you have in your account – hot checks *can result in expensive fees, fines and even jail time, if convicted.
Reconciling Your Statement • You receive a bank statement (record of all of the transaction on your account during the past month) • Reconcile: compare bank records with your records • Make sure the bank has not made any mistakes – no discrepancies
On January 5, 2011 you deposit $5 in quarters and one check for $500. You want $100 cash left out. 5 0 0 1/5/2011 500 0 0 Jane Doe 505 0 0 100 0 0 405 0 0