Checking
Accounts
What Kind of Spender are You?
Take the Spending Challenge!
U.S. Mint Video
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Federal Reserve Cont.
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The Federal Reserve
Created 1913
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Goal: Economic stability
Monetary Policy
– Influences growth of money/credit
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Bank for banks
– Payroll, large payments, provide cash
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Bank for govt.
– Taxes go here to pay for military payrolls & SS
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Supervisor/regulator of banks
– Oversee institutions
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The Role of Banks
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(private entities)
Banks are in business to earn a profit
– Interest charged for lending
– Interest depositors paid lower than interest
bank charges = income
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Banks provide security
– Protect your money’s purchasing power
– Banks are regulated
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The Role of Banks
Cont.
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FDIC (Federal Deposit Insurance Corp)
 Insures maximum $250,000
Money and financial transactions
– Barter
 Trading
good and services without using
money
 Work only if you have something the other
person wants
Internet: What is FDIC and Purpose
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10-J History of the
Federal Reserve Bank of
Kansas City
http://www.kc.frb.org
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Types of Money
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Currency
– paper money & coin
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Check
– order bank to pay sum to person
named on check (payee)
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The New Color Of Money
2006
2008
2004
2003
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Did you know…
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Susan B. Anthony $1 coin replaced by Golden
Dollar in 2000
$100,000 largest note produced
– December, 1934 - January, 1935
– Used for transactions btn FRB
– Not circulated to general public
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$100 note is largest denomination currently
issued in United States
“In God We Trust”
– Didn't appear on U.S. Federal Reserve Notes until
Series 1963 currency.
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Checking Acct video –
new one
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Advantages of Using Checks
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Safety
– Lost or stolen
– Replaced – cash can’t!
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Convenience
– Large purchases
– Safer to send through mail than cash
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Records of your transactions
– Check
– Bank sends statement
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Written record of all transactions
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Checking Acct. Types
Basic
Checking
Money
Free
Market
Checking
Senior/
Interest
Student
Bearing
Joint
Lifeline
Checking
Express
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Checking Account Costs
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Checking account fees
– Maintenance fee
Flat fee to cover cost of maintaining acct.
 No matter how many checks you write
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– Service Charge
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Charge for each check you write
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Your Checking Account
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Open a checking account
– 18 or older
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Signature card
Hand out voc. sheet
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Deposits
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Deposit form
Record your deposit
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Parts of a Check
Check Number
Drawer
Payee
Date written
Steven H. Williams
3456 Willow Road
Maryville, MO 64468
(660) 562-3234
Amt in
figures
Written
Amt
Nodaway Valley Bank
Main Street
Maryville, MO 64468
(660) 562-0000
:5434564436
Drawee
433567
342
Purpose of check
Acct/Routing Numbers
Drawer’s Signature
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Writing a Check
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Parts of a check
– Use ink
– Numerical amount vs. handwritten amount
– How to fill one out
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Endorsements
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Blank
– Your name
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Restrictive
– Restricts use
– “For Deposit Only”
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Special
– Transfer ownership
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Check Register and other info
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Record checks in check register
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–
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Record each transaction
Record interest
Calculate your new balance
Record check numbers
Overdrawn
Stop payment
Void
Post-dated
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Your Bank Statement
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“Reconciliation”
Monthly statement
– Transactions (deposits/wd)
– Bank fees
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Balancing or reconciling your account
Confirm transactions
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Account Reconciliation
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Make adjustments
– Record any maintenance fees/interest
earned in check register!
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What if the bank made an error?
File your records
– Canceled checks proof of transaction
– Make get back or copy of
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Do Checking Simulation 1
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Identity Theft
Social Security
• Keep confidential
Number
Tips
See flier & booklet
• Don’t make it easy to get your number
• Don’t give it to anyone
• Don’t carry your SS card with you
• Report immediately Federal Trade
Commission
Video & make flier
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Uses of Electronic Funds
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Direct deposit
Automatic Payment
ATM
Point of Sale Transaction
Stored-value cards
Prepaid cards
Debit Card
Cyberbanking
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Automated Teller Machines
(ATMs)
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EFT: electronic funds transfer
Your ATM card and PIN
ATM transactions – savings/checking
– ATM deposit
– ATM withdrawal
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Fees
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Use ATMs responsibly
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Act: Understanding ATM Fees Internet Search
Consumer Protection
and Responsibilities
Electronic Fund
Transfer Act
(EFTA)
• Requires banks to inform customers
of fees
• Offer receipt
• If lose card, must report 2 days lose up to $50 max
• If after 2 days, max. $500
• After 60, you responsible for all loss
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Different Checks for
Different Purposes
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Certified checks
Cashier’s checks
Money orders
Traveler’s checks
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Make fliers of different types
Certified Check
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Personal check signed and stamped by bank
Guaranteed to have enough money in account
to cover check
Written to specific payee
Low risk
Fee: $5-$20
EX: buying 1st house or automobile
Taken out of your account & no longer have
access to
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Cashier’s Check
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Bank’s OWN personal check singed by the
bank
Request amount then pay bank and small
service charge
Fee approx. $25
Sometimes called bank money order or
treasurer’s check
Do not need to have checking account
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EX: buying 1st house or other property
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Money Order
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Check that draws on money of bank or other
financial institution that issued it
Different than cashiers
– Companies, not just banks, issue
– Your name, not the bank, appears on check
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Fee: $1-$10
Ex: utility payment, phone bill
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Traveler's Check
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Form of payment often bought before going
on trip
– $20, $50, $100, and $500 denominations
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Signed twice before being cashed
Safer to use when traveling than cash or
personal check
Never expire
Fee: 1% of amount of checks
Can be replaced if lost or stolen
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Other Services
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Wire transfers
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–
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Electronic communication
Moves money from one acct to another
Large sums of money
Emergencies
Fee: $20-$40
Safe deposit boxes
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Individual boxes you rent from bank
Store valuables (car titles, birth certificate)
Fee: $30-$40 year
ID, sign, and have your key and obtain bank’s key to access
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Do checking simulation 2 and WB, QZ, Review, Test