Daily Information (c,h) Nov.10
Objectives:
Warm Up:
Agenda:
1. Explain the
purpose of
checking and
saving
accounts.
Record any
expenditures
since last class
in your
November
budget.
1. Warm Up
2. Finish grocery
store activity
3. Ch.5 Vocab.
4. Video
2. Prepare
checks and
maintain a
checkbook
register.
Daily Information (a) Nov.10
Objectives:
Warm Up:
Agenda:
1. Explain the
purpose of
checking and
saving
accounts.
Why do people
put money in a
checking or
savings
account?
2. Prepare
checks and
maintain a
checkbook
register.
*Record
expenditures
1. Warm Up
2. Ch.5 Vocab.
3. Banking P.P.
4. Student notes
5. Balancing a
check book
activity
*Partner activity
(withdrawals)
Daily Information (d) Nov.10
Objectives:
Warm Up:
1. Explain the
purpose of
checking and
saving
accounts.
1. Warm Up
Why do people
2. Finish the
put money in a
grocery store
checking or
activity
savings account? 3. Video
2. Prepare
checks and
maintain a
checkbook
register.
*Record
expenditures
*Partner activity
(withdrawals)
Agenda:
(ch3,sec2)
4. Ch.5 Vocab.
5. Banking P.P.
6. Student notes
7. Balancing a
check book
activity
Assignments
• Finish the grocery store activity from
last class
• Complete vocabulary for chapter 5
Daily Information Nov.11
Objectives:
1. Explain the
purpose of
checking and
saving
accounts.
2. Prepare
checks and
maintain a
checkbook
register.
Warm Up:
*Record
expenditures
*Take out vocab.
*Turn in Grocery
Store activity
Agenda:
1. Warm Up
2. Video (ch2,2.1)
3. Ch.5 Vocab.
4. Banking P.P.
5. Student notes
6. Balancing a
check book
activity
7. Video (ch3,2.1)
Daily Information Nov.11
Objectives:
Warm Up:
Agenda:
1. Explain the
purpose of
checking and
saving
accounts.
Why do people
put money in a
checking or
savings account?
1. Warm Up
2. Video (ch2,2.1)
3. Ch.5 Vocab.
4. Banking P.P.
5. Student notes
6. Balancing a
check book
activity
7. Video (ch3,2.1)
2. Prepare
checks and
maintain a
checkbook
register.
*Record
expenditures
*Partner activity
(withdrawals)
Daily Information Nov.12
Objectives:
Warm Up:
Agenda:
1. Explain the
purpose of
checking and
saving
accounts.
*Record
expenditures
1. Warm Up
2. Video (ch2,2.1)
3. Ch.5 Vocab.
4. Banking P.P.
5. Student notes
6. Balancing a
check book
activity
7. Video (ch3,2.1)
2. Prepare
checks and
maintain a
checkbook
register.
Daily Information Nov.12
Objectives:
Warm Up:
Agenda:
1. Explain the
purpose of
checking and
saving
accounts.
How much
money does
Dave Ramsey
suggest that you
save in high
school for
emergencies?
1. Warm Up
2. Banking P.P.
3. Student notes
4. Balancing a
check book
activity
5. Video (ch3,2.1)
2. Prepare
checks and
maintain a
checkbook
register.
*Record
expenditures
Why Open a Checking or
Savings Account?
• Safe place to keep money (Insured by the FDIC)
• Both are demand deposit accounts
– Easy access to money
– Many options to withdrawal money
• Saving accounts are for the accumulation of
money
• May be interest earning
Cash Management
The daily routine of handling money to take
care of individual or family needs
– Effective cash management includes having
money available for:
• Living expenses
• Emergencies
• Savings
• Investing
Slide 10
Cash Management Tools
Tool
Interest
Special Features
Checking Account
• Demand Deposit
1.5%
•Checks used in place of cash
•Easy access
Saving Account
• Demand Deposit
2.3%
•Temporary holding place
•Easy access
Money Market Account
• Demand Deposit
• Type of savings Acc.
2.6%
•Minimum balance
•Tiered interest rates
•Limited withdrawals
Certificate of Deposit
4 – 5.4% •Penalty for early withdrawal
•Not easy to access funds
Savings Bond
4 – 5.4% •Tax advantages
•Not easy to access funds
Checking Account Features
•
•
•
•
Minimum balance requirements
Charge transaction fees
Cash back options
Limited number of checks written
monthly
• Overdraft Protection (NSF)
**Reduces the need to carry large
amount of cash
Opening a Checking Account
• What will I need?
– Money! ($50 or $100)
– Personal information
– Identification
– Provide an official signature
• What will I be given?
– Checkbook
– Checkbook register
Withdrawals and Deposits
• A withdrawal (-) involves taking money from
your account.
o Writing checks
o Using debit cards
• A deposit (+) of money can be made to your
account.
o Endorsing checks
o Direct deposit
**Banks will not hold postdated checks and process them
at a future date.
Daily Information Nov.13
Objectives:
1. Explain the
purpose of
checking and
saving
accounts.
2. Prepare
checks and
maintain a
checkbook
register.
Warm Up:
*Record
expenditures
Agenda:
1. Warm Up
2. Vocab.
3. Banking P.P.
4. Student notes
5. Balancing a
check book
activity
6. Video (ch3,2.1)
Endorsing A Check
Signature on the back of the check approving it for
deposit. Checks must be endorsed to be deposited
Three Types
• Blank
• Restrictive
• Special
**Safest way to endorse the check is to wait until going
to the bank to deposit
Blank Endorsement
• Receiver of the
check signs
his/her name
• Anyone can cash
or deposit the
check after it has
been signed
Endorse Here
X
Sally Smith_________
DO NOT WRITE, STAMP OR SIGN
BELOW THIS LINE. RESERVED FOR
FINANCIAL INSTITUTION USE
________________________________
Restrictive Endorsement
• More secure than
blank endorsement
• Receiver writes
“for deposit only”
above his/her signature
– Allows the check
only to be
deposited
Endorse Here
For Deposit Only – Acct. 654986
X
Sally Smith_________
DO NOT WRITE, STAMP OR SIGN BELOW
THIS LINE. RESERVED FOR FINANCIAL
INSTITUTION USE
_______________________________
Special Endorsement
• Receiver signs and
writes “pay to the
order of (fill in
person’s name)
• Allows the check to
be transferred to
another person
– Also known as a
third-party check
Endorse Here
Pay to the order of Mike
Smith
X
Sally Smith_________
DO NOT WRITE, STAMP OR SIGN
BELOW THIS LINE. RESERVED FOR
FINANCIAL INSTITUTION USE
_______________________________
Check 21
• Check clearing for the 21st Century Act
– Current trend that changes how money is
withdrawn and deposited into accounts
How Check 21 Works
• Prior to Check 21
– Paper checks physically moved from place
to place
• After Check 21
– Paper checks scanned to computer to
create a “substitute check” (truncated)
– Substitute check is transferred
electronically from place to place
Daily Information Nov.12
Objectives:
Warm Up:
Agenda:
1. Explain the
purpose of
checking and
saving
accounts.
Explain the
difference
between the
three different
types of
endorsement.
1. Warm Up
2. Banking P.P.
3. Student notes
4. Balancing a
check book
activity
5. Video (ch3,2.1)
2. Prepare
checks and
maintain a
checkbook
register.
*Record
expenditures
Daily Information Nov.13
Objectives:
Warm Up:
Agenda:
1. Explain the
purpose of
checking and
saving
accounts.
Explain the
difference
between the
three different
types of
endorsement.
1. Warm Up
2. Banking P.P.
3. Student notes
4. Balancing a
check book
activity
5. Video (ch3,2.1)
2. Prepare
checks and
maintain a
checkbook
register.
*Record
expenditures
Daily Information Nov.14 (c)
Objectives:
1. Prepare
checks and
maintain a
checkbook
register.
Warm Up:
Agenda:
•Go to the following website
1. Warm Up
2. Check
Register
3. Banking P.P.
4. Student
notes
5. Bank Rec.
activities
6. Investment
calculations
www.socrative.com
•Enter the class number:
c2e084ee
•Enter your FULL NAME
2. Perform a
bank
•Begin
reconciliation.
Daily Information Nov.14 (d,h)
Objectives:
1. Prepare
checks and
maintain a
checkbook
register.
2. Perform a
bank
reconciliation.
Warm Up:
Agenda:
•Explain the following terms:
1. Warm Up
2. Check
Register
3. Banking P.P.
4. Student
notes
5. Bank Rec.
activities
6. Investment
calculations
– Non-sufficient
Funds
– Bounced Check
– Overdraft
Daily Information Nov.17 (c,a)
Objectives:
1. Prepare
checks and
maintain a
checkbook
register.
2. Perform a
bank
reconciliation.
Warm Up:
Agenda:
•Explain the following terms:
1. Warm Up
2. Banking P.P.
3. Student
notes
4. Bank Rec.
activities
5. Investment
calculations
– Non-sufficient
Funds
– Bounced Check
– Overdraft
Checkbook Register
A way to track your account transactions
Writing a Check
Sally Smith
500 Great Street
Yourtown, NJ 55555
93-456-9540
45086244786
503
Date: 9/6/2006
Pay to the
Order Of
The Pizza Place
$ 9.50
_Nine dollars_------------------------------------------------50/100_ Dollars
Guardian Angel Banking
423 South 15th
Yourtown, NJ 55555
Memo __Pizza_
___
0123456789 : 1234567890 : 503
Sally Smith____
Monthly Statement
• Comes from your bank
• Lists information about each transaction
during the period
• Lists the current balance during the period
Reconcile a Bank Statement
Bank reconciliation - the process of
adjusting the checkbook register and
bank statement so they agree
• Consider the following:
o deposits in transit
o outstanding checks
o transposition errors
Cash Management Tools
Tool
Interest
Special Features
Checking Account
• Demand Deposit
1.5%
•Checks used in place of cash
•Easy access
Saving Account
• Demand Deposit
2.3%
•Temporary holding place
•Easy access
Money Market Account
• Demand Deposit
• Type of savings Acc.
2.6%
•Minimum balance
•Tiered interest rates
•Limited withdrawals
Certificate of Deposit
4 – 5.4% •Penalty for early withdrawal
•Not easy to access funds
Savings Bond
4 – 5.4% •Tax advantages
•Not easy to access funds
Daily Information Nov.14 (d,h)
Objectives:
1. Prepare
checks and
maintain a
checkbook
register.
2. Perform a
bank
reconciliation.
Warm Up:
Agenda:
•Explain the following terms:
1. Warm Up
2. Check
Register
3. Banking P.P.
4. Student
notes
5. Bank Rec.
activities
6. Investment
calculations
– Non-sufficient
Funds
– Bounced Check
– Overdraft
Daily Information Nov.17 (h)
Objectives:
Warm Up:
Agenda:
1. Prepare
checks and
maintain a
checkbook
register.
What is the
importance of
performing a
bank
reconciliation??
1. Warm Up
2. Corrections
3. Banking P.P.
4. Student
notes
5. Bank Rec.
activities
6. Investment
calculations
2. Perform a
bank
reconciliation.
Daily Information Nov.18 (a)
Objectives:
Warm Up:
Agenda:
1. Prepare
checks and
maintain a
checkbook
register.
*Check your
grade in infinite
campus
2. Perform a
bank
reconciliation.
*Record any
expenditures in
your budget
1. Warm Up
2. Corrections
3. Banking P.P.
4. Student
notes
5. Investment
calculations
6. Study Guide
7. Review
Games
Daily Information Nov.18 (h)
Objectives:
Warm Up:
Agenda:
1. Prepare
checks and
maintain a
checkbook
register.
*Check your
grade in infinite
campus
2. Perform a
bank
reconciliation.
*Record any
expenditures in
your budget
1. Warm Up
2. Corrections
3. Banking P.P.
4. Student
notes
5. Investment
calculations
6. Study Guide
7. Review
Games
Liquidity
How quickly and easily an asset can be
converted into cash. Liquid assets are
important for emergency situations
Investors should:
– Invest in both liquid and non-liquid tools
Liquidity
Checking Account
Most Liquid
Savings Account
Money Market Account
Certificate of Deposit
Savings Bond
Least Liquid
Cash Management Tools
Tool
Interest
Special Features
Checking Account
• Demand Deposit
1.5%
•Checks used in place of cash
•Easy access
Saving Account
• Demand Deposit
2.3%
•Temporary holding place
•Easy access
Money Market Account
• Demand Deposit
• Type of savings Acc.
2.6%
•Minimum balance
•Tiered interest rates
•Limited withdrawals
Certificate of Deposit
4 – 5.4% •Penalty for early withdrawal
•Not easy to access funds
Savings Bond
4 – 5.4% •Tax advantages
•Not easy to access funds
Certificate of Deposit (CD)
• Time Deposit account
• Pays a fixed rate of interest for a specified
length of time
• Higher interest than a savings account
• Penalty for withdrawing money prior to the
specified length of time
**Good option if you do not need immediate
access to money
U.S. Savings Bond
• Discount bond (pay less than face value)
– Pay $50 (discount) for a $100 bond (face value)
• Issued by the federal government
– You are loaning money to the government
• Long-term saving option
Watch Your Money Grow!
How can you grow your savings?
Through…
• Principal
• Simple interest
• Compound interest
Computing Simple Interest
• P = amount of money invested
• R = interest rate
• T = time period that money will be set aside
Simple Interest
Interest (I) = Principal (P) × Rate (R) × Time (T)
= $1,000 × 6% annual rate × 6 months
= $1,000 × 0.06 × 6/12 = $30
Simple Interest: interest computed on principal once during a
certain time period
Computing Compound Interest
Future Value of Money
Quarterly Compounding
Annual Interest Rate 6%
Year
Beginning
Balance
Rate
6%
Ending
Balance
Quarter
1
2
3
4
1
$100.00
0.015
$1.50
$1.52
$1.55
$1.57
$106.14
2
$106.14
0.015
$1.59
$1.62
$1.64
$1.66
$112.65
3
$112.65
0.015
$1.69
$1.72
$1.74
$1.77
$119.57
Compound Interest: interest earned on both the principal and
previously earned interest
Rule of 72
How long will it take to double my money?
• Divide annual interest rate into 72
Example: if you invest $50 at 6% interest,
your money will grow to $100 in 12 years
( 72 ÷ 6 = 12 years)
Available Banking Services
•
•
•
•
•
•
•
•
Safe deposit boxes
Overdraft protection
ATMs
Cashier’s checks
Financial advising
Loans
Internet banking
Bank cards
Costs of Banking
• Monthly account fees
• Nonsufficient fund fees
• Special service fees
o Examples: stop
payment, cashier’s
check, money order
• ATM fees
• Inactive account fees
What Are Consumer
Responsibilities?
• Maintain your balance
o Avoid writing bad
checks.
• Monitor your account
o Reconcile your bank
account.
• Know your rights
o Be aware of consumer protection laws.
Daily Information 3/25/13
Objectives:
Warm Up:
1. Prepare a
bank
reconciliation
1. Warm Up
Explain the
2. Bank
difference
reconciliation
between the three
P.P.
different types of 3. Follow along
endorsement.
notes
2. Explain how
you can grow
your savings
with interest
Write this down.
Agenda:
4. Chapter 5
activity packet
Bottom Line/Exit Ticket
• Go to the following website
www.socrative.com
• Enter the class number: c2e084ee
–
• Enter your FULL
• Begin
NAME
Daily Information Nov.20
Objectives:
Warm Up:
Agenda:
1. Prepare
checks and
maintain a
checkbook
register.
*Quiz Today!!
1. Warm Up
2. Ch5 Quiz
3. Movie
2. Perform a
bank
reconciliation.
Take out your
study guide
Daily Information Nov.20 (c,h)
Objectives:
Warm Up:
Agenda:
1. Prepare
checks and
maintain a
checkbook
register.
*What is the
most interesting
thing you
learned in this
chapter?
1. Warm Up
2. Review
Games
3. Study Guide
2. Perform a
bank
reconciliation.
Daily Information Nov.21
Objectives:
Warm Up:
Agenda:
1. Prepare
checks and
maintain a
checkbook
register.
*Quiz Today!!
1. Warm Up
2. Ch5 Quiz
3. Movie
2. Perform a
bank
reconciliation.
Take out your
study guide