lesson six
using banking services
teacher’s guide
using banking services
web sites
web sites for banking services
The Internet is probably the most extensive and dynamic source of information
in our society. The following Web sites can provide students and others with
current information, assistance, and data related to this lesson. Web addresses
ending in “.com” are commercial sites; “.org” are non-profit sites; and “.gov” are
government sites.
American Bankers Association
www.aba.com
American Savings Education Council www.asec.org
Board of Governors of the
Federal Reserve System
Current Rates for
Savings Instruments
Federal Deposit Insurance
Corporation
www.federalreserve.gov
www.banx.com
www.bankrate.com/ust/rate/dep_home.asp
www.bankrate.com/brm/rate/ira_home.asp
www.fdic.gov
Treasury Securities and
Savings Bonds
U.S. Savings Bonds Online
ww.frbsf.org/federalreserve/system/treasury.html
www.publicdebt.treas.gov/sav/sav.htm
Note: Addresses and content of Web sites change, and new sites are created daily. Use search
engines such as Yahoo, Google, AltaVista, Infoseek, Lycos, or Hotbot, to update and locate Web
sites related to this topic.
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teacher’s guide
using banking services
lesson outline
lesson 6 overview
“Where is the safest place to keep my money?” “If I put all my money in savings, how will I be able
to purchase an item or pay a bill?
While most students know that banks offer savings and checking services, few understand how to
make the best use of them. As electronic banking services expand, awareness of benefits and costs
must expand.
Lesson 6 begins with an introduction to how banks operate. Students are then familiarized with the
vocabulary that helps them understand the variety of bank services. They also examine recent
electronic banking options, including debit or check cards.
Next, students learn to complete several of the forms necessary for opening and maintaining a bank
account. They will practice completing these forms in a step-by-step manner.
Finally, students use basic mathematics skills to keep a running record of their bank accounts and to
reconcile their monthly bank statements.
lesson 6 student performance goal:
■
The student will increase his or her understanding of the services offered by banks and perform
a variety of banking tasks.
lesson 6 objectives: The student will…
6-1
recognize financial services that banks offer.
6-2
complete a variety of banking forms (signature authorization form, deposit form, check).
6-3
demonstrate skills needed to maintain a checking or debit account (maintain a check register,
interpret an account statement, reconcile a checking account).
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teacher’s guide
using banking services
teaching notes
6-1 The student will recognize financial services that
banks offer.
what services do banks offer?
■
■
■
■
■
■
■
■
■
Explain how a bank works and how it helps
people manage their money. Define a credit
union and how it compares to a bank.
Define and discuss banking terms (overhead 61a).
Discuss the advantages of keeping money in a
savings account, rather than keeping it at home in
a piggy bank. Explain to students how their
money can grow by earning interest. Define
annual interest as the money a bank pays its
depositors for the use of their money, expressed as
a percentage rate for a one-year period of time.
Help students calculate simple interest for a
savings account.
List as many banking services as students can
think of. Have students share what they know
about these services.
Discuss checking accounts. Tell students that
there are a variety of considerations and options
available when choosing a checking account
(overhead 6-1b). Discuss some of the
responsibilities of being a checking account
customer, as well as consequences of not acting
responsibly.
Discuss debit cards. Provide advantages and
disadvantages of using debit cards. Stress to
students that like a checking account, the use of
a debit/check card is a privilege that can be
revoked by the bank if there are insufficient
funds for purchases made.
Discuss electronic banking services (overhead 61c). Most students are probably aware of ATMs.
Discuss terms they need to understand to operate
an ATM and the components of an ATM
(overhead 6-1d).
Warn students that some banks charge a fee each
time they use an ATM. Tell students that some
ATMs also charge a transaction fee. They need
to understand which kind of ATM accepts their
particular cards at no additional cost. A fee of 75
cents may not seem like much, but these charges
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overhead 6-1a:
banking terms you
should know
discussion
overhead 6-1b:
choosing a checking
account
overhead 6-1c:
electronic banking services
overhead 6-1d:
ATM terms you should
know
teacher’s guide 6-1
using banking services
teaching notes
add up quickly!
How does a bank work?
Banks use the money that people deposit to either lend to
others or invest. They make money by charging interest to
people who borrow money. They pay interest to customers
who keep their money in the bank.
What is a credit union?
A financial cooperative owned by its members. It offers the
same financial services as a bank. It usually does so at a
lower cost than banks because its non-profit status makes
its operating costs lower. A credit union can only serve its
members; it does not serve the general public.
banking terms you should know (overhead 61a)
Account — Money deposited with a bank for safekeeping
ATM — Acronym for “automated teller machine”
Bank — A business that keeps money safe for its
customers, lends money to borrowers, and provides other
financial services.
overhead 6-1a:
banking terms you
should know
Checking account — An account that allows you to deposit
money and write checks on that account. Checking accounts
pay less interest than savings accounts or none at all.
Credit union — A financial cooperative owned by its
members to serve its members. It offers the same financial
services as a bank.
Interest — The money a bank pays for the use of a person’s
money. Interest is referred to in terms of annual percentage
rate (APR).
Joint account — A savings or checking account set up in
the names of more than one person, i.e. parent/child.
Minimum deposit — The least amount of money a bank
requires when opening an account.
Savings account — A bank account that allows you to put
money away to use later. The bank pays interest in
exchange for use of the money in the account.
Teller — A bank employee who performs banking services
for the public, such as cashing checks and accepting deposits.
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teacher’s guide 6-1
using banking services
teaching notes
Simple interest — Interest calculated on the principal
amount but not on any interest that has been earned.
example: Your bank pays 5% interest per year — 5 cents for
every dollar. If you put $100 in a savings account at the
bank, you’ll earn an extra $5.00 by the end of the year. Your
savings will grow to $105.00. Now, how much interest
would you earn if you put $1000 into savings?
banking services: financial-related activities
such as:
■
Automatic deposit and payment
■
Storage of valuables
■
Transfer of money
■
Checking accounts
■
Savings accounts
■
Debit cards (also called check cards)
■
ATMs
choosing a checking account (overhead 6-1b)
Location — bank branch offices; hours of operation;
availability of ATMs
Fees — monthly fees; per check fees; printing of checks;
balance inquiry fees; ATM fees
Other charges — overdraft charge; stop-payment fees
Interest — rate earned; minimum deposit to earn interest
Restrictions — minimum balance; holding period for
deposited checks
overhead 6-1b:
choosing a checking
account
Special features — direct deposit; automatic payments;
overdraft protection; online banking; discounts or free
checking for students
electronic banking services (overhead 6-1c)
Direct deposit — earnings automatically deposited into
bank accounts.
Automatic payments — an automatic payment system
where bills are paid through direct withdrawal from a bank
account.
overhead 6-1c:
electronic banking services
Automatic teller machines (ATM) — allow customers to
get cash and conduct banking transactions.
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teacher’s guide 6-1
using banking services
teaching notes
Point-of-sale transactions — ATM/debit cards accepted
at stores or restaurants as payment.
ATM terms you should know (overhead 61d)
Balance — The amount of money currently in an account.
Deposit — The money put into a bank account. An ATM
can accept bills only, for deposit; it cannot accept change.
Inquiry — Tells how much money you currently have in
your account (account balance).
overhead 6-1d:
ATM terms you
should know
Transaction — Business done with a bank, including
deposits and withdrawals.
Withdrawal — An amount of money taken out of an
account.
Debit card/ check card — A banking card that can be used
to purchase goods and services electronically. The card
replaces cash or checks. The amount of purchase is
transferred immediately from the customer’s account to the
receiver’s account. It allows you to withdraw money at an
ATM and make point-of-sale purchases without writing a
check. It often requires that the cardholder enter a PIN.
PIN (Personal Identification Number) — A secret
number or code that protects the security of an account.
benefits of using a debit card/check card:
■
Makes paying at the checkout counter quicker
and more convenient than writing a check.
■
You don’t need to carry a checkbook or a lot of
cash.
■
Can be used out of town or at places where
personal checks are not accepted.
warning: always keep track of your checking account
balance so sufficient funds are available for a purchase.
how do you keep track of your debit
card/check card transactions?
■
Debit card holders receive receipts at each ATM
or merchant location. Users typically record debit
card purchases in their checkbook registers. All
debit/check card transactions will appear as
deductions on your next checking account
statement.
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teacher’s guide 6-1
using banking services
teaching notes
lesson 6 quiz: financial services
quiz 6-1 | quiz key 6-1
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teacher’s guide 6-1
banking terms you should know
■
Account
■
ATM
■
Bank
■
Checking account
■
Credit union
■
Interest
■
Joint account
■
Minimum deposit
■
Savings account
■
Teller
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overhead 6-1a
choosing a checking account
Location
bank branch offices; hours of operation; availability of ATMs
Fees
monthly fees; per check fees; printing of checks; balance inquiry fees;
ATM fees
Other charges
overdraft charge; stop-payment fees
Interest
rate earned; minimum deposit to earn interest
Restrictions
minimum balance; holding period for deposited checks
Special features
direct deposit; automatic payments; overdraft protection; online
banking; discounts or free checking for students
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overhead 6-1b
electronic banking services
Direct deposit
earnings automatically deposited into bank accounts.
Automatic payments
an automatic payment system where bills are paid through direct
withdrawal from a bank account.
Automatic teller machine (ATM)
allows customers to get cash and conduct banking transactions.
Point-of-sale transactions
ATM/debit cards accepted at stores or restaurants as payment.
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overhead 6-1c
ATM terms you should know
ATM Terms You Should Know
PIN
Inquiry
Balance
Transaction
Deposit
Withdrawal
Button
Keyboard
Screen
Receipt slot
Card slot
Deposit slot
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Withdrawal
slot
overhead 6-1d
name__________________________________________________________date___________________________________
lesson 6 quiz: electronic banking
choose the correct answer.
1. ____ The bank pays for the use of money in the form of:
a. a minimum deposit.
b. interest.
c. savings.
d. cash from an ATM.
2. ____ Electronic banking services often require the use of:
a. an inquiry.
b. a checking account.
c. a deposit.
d. a PIN.
3. ____ If you and your mother open a bank account together, it’s called:
a. a joint account.
b. an electronic banking service.
c. an automatic payment.
d. a checking account.
4. ____ Which of the following tasks will an ATM not allow?
a. withdraw cash
b. find the current balance in your account
c. make a deposit
d. cash a check
5. ____ Which of these statements about a debit card is not true?
a. It is faster and easier to use than paying with a check.
b. You don’t have to carry as much cash if you have one.
c. You don’t have to worry about your balance like you do with a checkbook.
d. It allows you to withdraw money at an ATM.
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quiz 6-1
name__________________________________________________________date___________________________________
lesson 6 quiz: electronic banking
choose the correct answer.
1. ____ The bank pays for the use of money in the form of:
a. a minimum deposit.
b. interest. *
c. savings.
d. cash from an ATM.
2. ____ Electronic banking services often require the use of:
a. an inquiry.
b. a checking account.
c. a deposit.
d. a PIN. *
3. ____ If you and your mother open a bank account together, it’s called:
a. a joint account. *
b. an electronic banking service.
c. an automatic payment.
d. a checking account.
4. ____ Which of the following tasks will an ATM not allow?
a. withdraw cash
b. find the current balance in your account
c. make a deposit
d. cash a check *
5. ____ Which of these statements about a debit card is not true?
a. It is faster and easier to use than paying with a check.
b. You don’t have to carry as much cash if you have one.
c. You don’t have to worry about your balance like you do with a checkbook. *
d. It allows you to withdraw money at an ATM.
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quiz key 6-1
using banking services
teaching notes
6-2 The student will complete a variety of banking
forms (signature authorization form, deposit form,
check).
how do you fill out bank forms? how do you
write a check?
■
■
■
■
■
■
■
■
Explain the forms banks require their customers
to fill out in order to obtain access to financial
services. Tell students that all bank forms need to
be completed in ink, not pencil. Ask them why
they think this is so important.
Define the terms: “signature authorization card,”
“check,” “endorse,” and “deposit slip.”
Explain that to open an account, customers are
required to complete a signature authorization
card. The bank may require a birth certificate as
proof of identification. Check to see if students
have memorized their social security number. If
not, have them write it down and practice
memorizing their number.
Demonstrate the correct way to complete a
signature authorization card (overhead 6-2a).
Have students complete a sample form (activity
6-2a).
Identify the parts of a completed check by
answering questions (overhead 6-2b).
Discuss how to endorse a check to be deposited
in an account. Tell students that if the check is to
be deposited, rather than being cashed, the
account number should be written in the check’s
endorsement area. Clarify that this is done so
that if a check is misplaced or stolen, it cannot be
deposited into another person’s account.
Examine a deposit slip. Demonstrate the correct
way to complete a deposit slip (overhead 6-2c).
Ask a local bank for a number of the envelopes
used in issuing cash. Make copies of blank
checks (activity 6-2e) and complete them in
various amounts. Give each student different
amounts of “play” money (both coins and bills)
and several completed checks. Put each student’s
amount in an envelope. Have students count
their money and fill out a deposit slip for the
amount in their envelopes. They may or may not
want cash back (activity 6-2b).
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overhead 6-2a:
opening a bank account
overhead 6-2b:
parts of a check
overhead 6-2c:
making a deposit
overhead 6-2d:
writing the amount of a
check in words
overhead 6-2e:
writing a check
teacher’s guide 6-2
using banking services
■
■
■
■
■
■
■
Demonstrate how to complete a check using words
to express the dollar amount. Show an example
(overhead 6-2d), model, and involve students in the
process of converting other dollar amounts to words
on the overhead or board. Give students more
practice using activity 6-2c.
Explain to students that a check, just like cash, can
be stolen. They need to keep their checkbooks in a
safe place at all times. They should never loan their
checkbooks to friends.
Help students understand that they also need to
safeguard their money by filling out a check
carefully, so that it cannot be tampered with. List
precautions a check writer should take so his or her
check cannot be changed in any way: always write a
check in ink (rather than pencil); do not leave any
space between numbers in a written amount; draw a
line from the completion of the written out number
to the end of the line.
Remind students that their social security numbers
are personal identifiers that can be stolen or
misused by others. They should never give wide
access to their social security numbers by writing
them on their personal checks.
Demonstrate the correct way to write a check
(overhead 6-2e).
Have students find something they would like to
buy from a mail order catalogue. Have them write a
check, made payable to the appropriate company
name for the correct amount. (activity 6-2d)
Use Activity Templates to provide students with
additional practice writing checks, endorsing
checks, and completing deposit slips.
teaching notes
student activity 6-2c:
writing out amounts
overhead 6-2e:
writing a check
student activity 6-2d:
writing a check
Signature authorization card — The card that a customer
signs when he/she opens a bank account. The signature is a
form of personal identification.
Check — A written document instructing the bank to pay a
specific amount of money from the check-writer’s account to
a specific person or company.
Endorse — To sign the back of a check before cashing or
depositing it.
Deposit slip — An itemized slip showing the exact amount
of paper money, coin, and checks being added to an account.
Net deposit — The final amount of a deposit, less cash
received.
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teacher’s guide 6-2
opening a bank account
www.practicalmoneyskills.com using banking services
overhead 6-2a
parts of a check
What is the date of the check? ___________________________
Who is the check made payable to? _______________________
What is the check number?______________________________
What is the check transit number? _______________________
(Hint: look for the top part of the two-part number in the upper right
corner of the check.)
Where do you endorse a check? __________________________
Where is the account number? ___________________________
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overhead 6-2b
making a deposit
1. Date — Write today’s date.
2. Bills — If you are depositing paper bills, write the amount.*
3. Coins — If you are depositing coins, write the amount.*
4. Checks — If you are depositing a check, write the bank transit
number.
5. Amount — Write the amount of the check here.*
6. Other Checks — List the total amount of the checks listed on the
reverse side of the deposit slip.*
7. Total — Write the total amount you are depositing here.*
8. Cash — If you want the bank teller to give you money back from
the deposit, write the amount of cash you want here.*
9. Net Deposit — Subtract the cash amount you want back. Then
write the net (final) amount of your deposit.*
* Remember to…
place the dollar amount to the left of the vertical line
place the cents amount to the right of the vertical line.
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overhead 6-2c
writing the amount of a check in words
$ 857.19
Start writing at the far left side of the line
Eight hundred fifty seven
Dollars
Follow the dollar amount by the word “and”
Eight hundred fifty seven and
Dollars
Write the amount of cents over the number 100
Eight hundred fifty seven and 19/100
Dollars
Draw a line from the end of the 100 to the end of the line.
Eight hundred fifty seven and 19/100 ----------Dollars
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overhead 6-2d
writing a check
1. Date
Write today’s date.
2. Payee
Write the name of the person or company that you are paying.
3. Amount of check in numerals
Write the amount of the check in numbers. Be careful not to leave any
space between your numbers.
4. Amount of check in words
Write the amount of the check in words.
5. Name
Your personal information is printed here. Never list your Social
Security number on your printed check.
6. Signature
Sign your check the same way you signed your name on the signature
card.
7. Memo
Write why you wrote the check. If you are paying a bill, put down any
information requested by the company.
8. Identification numbers
These numbers identify your bank, account number, and the check
number. They are printed in special magnetic ink that machines can read.
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overhead 6-2e
name:____________________________________________________________
date: ______________________
opening a bank account
Directions:
Complete the signature authorization card below. Print your personal information
neatly. Sign the card, using your full name.
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activity 6-2a
name:____________________________________________________________
date: ______________________
making a deposit
1.
Date — Write today’s date.
2.
Bills — If you are depositing paper bills, write the amount.*
3.
Coins — If you are depositing coins, write the amount.*
4.
Checks — If you are depositing a check, write the bank transit number.
5.
Amount — Write the amount of the check here.*
6.
Other Checks — List the total amount of the checks listed on the reverse side of the
deposit slip.*
7.
Total — Write the total amount you are depositing here.*
8.
Cash — If you want the bank teller to give you money back from the deposit, write the
amount of cash you want here.*
9.
Net Deposit — Subtract the cash amount you want back. Then write the net (final)
amount of your deposit.*
* Remember to…
place the dollar amount to the left of the vertical line
place the cents amount to the right of the vertical line.
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activity 6-2b
name:____________________________________________________________
date: ______________________
writing out amounts
Directions:
Write the following amounts of money using words, as you would on a check.
1.
$836.99
_____________________________________________DOLLARS
2.
$3,455.00
_____________________________________________DOLLARS
3.
$71.22
_____________________________________________DOLLARS
4.
$569.07
_____________________________________________DOLLARS
5.
$9,670.11
_____________________________________________DOLLARS
Word Bank:
10: ten
15: fifteen
20: twenty
70: seventy
11: eleven
16: sixteen
30: thirty
80:eighty
12: twelve
17: seventeen
40: forty
90: ninety
13: thirteen
18: eighteen
50: fifty
_00: hundred
14: fourteen
19: nineteen
60: sixty
_000: thousand
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activity 6-2c
name:____________________________________________________________
date: ______________________
writing out amounts
Directions:
Write the following amounts of money using words, as you would on a check.
1.
$836.99
Eight hundred thirty six and 99/100 ———————DOLLARS
2.
$3,455.00
Three thousand, four hundred fifty five and 00/100——-DOLLARS
3.
$71.22
Seventy one and 22/100———————————-DOLLARS
4.
$569.07
Five hundred sixty nine and 07/100 ———————-DOLLARS
5.
$9,670.11
Nine thousand, six hundred seventy and 11/100———-DOLLARS
Word Bank:
10: ten
15: fifteen
20: twenty
70: seventy
11: eleven
16: sixteen
30: thirty
80:eighty
12: twelve
17: seventeen
40: forty
90: ninety
13: thirteen
18: eighteen
50: fifty
_00: hundred
14: fourteen
19: nineteen
60: sixty
_000: thousand
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activity key 6-2c
name:____________________________________________________________
date: ______________________
writing a check
1.
Date
Write today’s date.
2.
Payee
Write the name of the person or company that you are paying.
3.
Amount of check in numbers
Write the amount of the check in numbers. Be careful not to leave any space between your
numbers.
4.
Amount of check in words
Write the amount of the check in words.
5.
Name
Your personal information is printed here. Never list your Social Security number on your
printed check.
6.
Signature
Sign your check the same way you signed your name on the signature card.
7.
Memo
Write why you wrote the check. If you are paying a bill, put down any information
requested by the company.
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activity 6-2d
name:____________________________________________________________
date: ______________________
writing a check
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activity 6-2d, cont.
using banking services
6-3 The student will demonstrate skills needed to
maintain a checking or debit account (maintain a check
register, interpret an account statement, reconcile a
checking account).
teaching notes
overhead 6-3a:
“check” out these terms
how do you maintain a checking or debit
account?
■
■
■
■
■
■
■
■
■
Familiarize students with the terminology
associated with checking accounts. (overhead 63a)
Discuss the advantages of using a checking
account. Compare the features of a check to
those of cash or a debit card.
Explain the extra costs that may be associated
with a checking account.
Stress the importance of keeping accurate records
with regards to maintaining a checking account.
If the checking account is linked to an ATM
card or a debit card, the individual must also
keep track of ATM withdrawals and debit card
purchases (overhead 6-3b).
Take students through the process of
maintaining a running account balance (activity
6-3a). As a group, have students read the items.
Record the transactions on overhead 6-3d as
students complete the “running balance”
worksheet at their desks. Have students answer
related questions (activity 6-3a).
Create a variety of scenarios in which students
enter data and keep a running balance of
transactions using activity template 6-3b.
Explain that a bank helps its customers stay on
track by sending out a monthly statement of all
activities on an account. Item by item, help
students read and interpret a bank statement
(overhead 6-3c).
Have students read and interpret a bank
statement to answer specific questions (activity
6-3c).
Outline the steps for reconciling a checking
account using overhead 6-3e. Ask students to
reconcile a checking account using activity 6-3d.
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overhead 6-3b:
maintaining a checking account
student activity 6-3a:
keeping a running balance
student activity 6-3b:
creating a check register
overhead 6-3c:
reading a bank statement
overhead 6-3d:
keeping a running balance
overhead 6-3e:
reconciling a checking account
teacher’s guide 6-3
using banking services
checking terms you should know
Overdraft — A check written for more money than is
currently in the account. If the bank refuses to cash the
check, it is said to have “bounced.”
Bounced check — A check that a bank has refused to cash
or pay because the check-writer did not have enough
money to cover it in his or her account. This is referred to
as having “insufficient funds.”
teaching notes
overhead 6-3a:
“check” out these terms
Canceled check — A “used” check. It has been paid and
subtracted from the check-writer’s account. Canceled
checks have extra information on them from the bank
tracing the payment process.
Clear — A check “clears” when its amount is paid and
subtracted from your checking account. Allow three
business days for a check to clear.
Stop payment — A request made to a bank to not pay a
specific check. There is often a charge for this service.
Service charge — A monthly fee a bank charges for
handling a checking account.
Voided check — An invalid check that cannot be cashed.
To “void” a check means to mark the check with the word
“VOID.”
advantages of a checking account:
■
You don’t have to carry cash, which can get lost
or stolen.
■
You can safely send it in the mail as payment.
■
A cancelled check is proof of payment.
extra costs of a checking account:
■
Monthly fees
■
Per-check charges
■
Balance requirements
■
Interest rate
■
Bounced check charges
■
ATM charges
■
Stop payment fees
■
Charges for printed checks
■
Interest on checking
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teacher’s guide 6-3
using banking services
teaching notes
interpreting a bank statement and reconciling an account:
1. Reading a bank statement
2. Reconciling an account
■
Checking the bank statement
■
Verifying checks in the check register
■
Verifying deposits and ATM transactions
■
Verifying check card transactions
■
Correcting entry errors in the check register
■
Correcting deposit or ATM transaction amounts
in the check register
■
Correcting check card transaction amounts in the
check register
■
Correcting errors of omission in the check
register
■
Finding outstanding transactions
3. Practice reading a bank statement
overhead 6-3c:
reading a bank statement
overhead 6-3e:
reconciling a checking account
4. Practice reconciling an account
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teacher’s guide 6-3
“check” out these terms!
■
Overdraft
■
Bounced check
■
Canceled check
■
Check card/ Debit card
■
Clear
■
Stop payment
■
Service charge
■
Voided check
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overhead 6-3a
maintaining a checking account
■
■
■
ATM Card
Check Transaction
Debit/Check Card
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overhead 6-3b
reading a bank statement
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overhead 6-3c
keeping a running balance
CHECK
NO.
DATE
DESCRIPTION
TRANSACTION
AMOUNT
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DEPOSIT
AMOUNT
BALANCE
overhead 6-3d
reconciling a checking account
Step 1: Get the current balance from your bank statement.
Step 2: Add deposits recorded in your check register that are not on
this statement.
Step 3: Subtract outstanding checks. These are checks you have written
that have not yet cleared the banking system.
Step 4: Compare the result with the current balance in your check
register.
Remember to…
-
subtract service fees or other charges
+
add direct deposits
+
add interest earned
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overhead 6-3e
name:____________________________________________________________
date: ______________________
keeping a running balance
Directions:
Record checks, a check card payment, an ATM transaction and a deposit in the
checkbook register below. Include the date, description, and amount of each entry.
Calculate the balance.
1.
May 26: write beginning balance of $527.96.
2.
May 27: write check #107 to Mrs. Wilson. You pay your landlord your share of the rent
payment: $225.00.
3.
May 28: make a check card payment to Foodland. You pay $22.52 for groceries.
4.
June 1: write check #108 to Bank of Illinois. You make a car payment of $165.23.
5.
June 2: write check #109 to Interstate Phone Service for $62.77.
6.
June 2: use your ATM card to withdraw $20.00.
7.
June 15: you deposit your paycheck for $425.00. Write this amount in the DEPOSIT
column.
CHECK
NO.
DATE
DESCRIPTION
TRANSACTION
AMOUNT
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DEPOSIT
AMOUNT
BALANCE
activity 6-3a
name:____________________________________________________________
date: ______________________
keeping a running balance
Directions:
Use the check register you just completed to answer the questions:
1.
What was your account balance on May 30?
_______________________
2.
Your favorite band just released a new CD. It costs $21.00. Can you afford to buy the CD
on June 3? What will your account balance be if you do?
_______________________
3.
You find a leather jacket on sale for $189.00. Can you afford to buy the jacket on June 16?
What will your account balance be if you do?
_______________________
4.
What was the amount of check #109? Who was it payable to?
_______________________
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activity 6-3a cont.
name:____________________________________________________________
date: ______________________
keeping a running balance
Directions:
Record checks, a check card payment, an ATM transaction and a deposit in the
checkbook register below. Include the date, description and amount of each entry.
Calculate the balance.
1.
May 26: write beginning balance of $527.96.
2.
May 27: write check #107 to Mrs. Wilson. You pay your landlord your share of the rent
payment: $225.00.
3.
May 28: make a check card payment to Foodland. You pay $22.52 for groceries.
4.
June 1: write check #108 to Bank of Illinois. You make a car payment of $165.23.
5.
June 2: write check #109 to Interstate Phone Service for $62.77.
6.
June 2: use your ATM card to withdraw $20.00.
7.
June 15: you deposit your paycheck for $425.00. Write this amount in the DEPOSIT
column.
CHECK
NO.
DATE
107
5/27
DESCRIPTION
Mrs. Wilson
TRANSACTION
AMOUNT
DEPOSIT
AMOUNT
225.00
5/28
Check Card - Foodland
302.96
22.52
22.52
groceries
108
6/1
Bank of Illinois
280.44
165.23
165.23
car payment
109
6/2
Interstate Phone Service
115.21
62.77
62.77
phone
ATM
6/2
Cash Withdrawal
527.96
225.00
rent
C.Card
BALANCE
52.44
20.00
20.00
32.44
ATM
6/15
Deposit
paycheck
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425.00
425.00
457.44
activity key 6-3a
name:____________________________________________________________
date: ______________________
keeping a running balance
Directions:
Use the check register you just completed to answer the questions:
1.
What was your account balance on May 30?
* $280.44
2.
Your favorite band just released a new CD. It costs $21.00. Can you afford to buy the CD
on June 3? What will your account balance be if you do?
* Yes—$11.44
3.
You find a leather jacket on sale for $189.00. Can you afford to buy the jacket on June 16?
What will your account balance be if you do?
* Yes—$268.44
4.
What was the amount of check #109? Who was it payable to?
* $62.77 to Interstate Phone Service
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activity key 6-3a cont.
name:____________________________________________________________
date: ______________________
create a check register
CHECK
NO.
DATE
DESCRIPTION
TRANSACTION
AMOUNT
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DEPOSIT
AMOUNT
BALANCE
activity 6-3b
name:____________________________________________________________
date: ______________________
reading a bank statement
Directions:
Using the bank statement on the next page, answer the following questions:
1.
What period does this statement cover? ______________________________________
2.
What is the account number of this statement? ________________________________
3.
How many deposits were made? ____________________________________________
What were the amounts? __________________________________________________
4.
How many checks cleared? ________________________________________________
What was the total dollar amount of the checks that cleared? ____________________
5.
How many ATM transactions were there? ____________________________________
6.
What was the total amount of debit card transactions? __________________________
7.
What did service charges cost? ______________________________________________
8.
What is the new balance of the account? ______________________________________
9.
Did check #182 clear? ____________________________________________________
What was the amount? ____________________________________________________
10. Did check #185 clear? ____________________________________________________
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activity 6-3c
name:____________________________________________________________
date: ______________________
reading a bank statement
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activity 6-3c, cont.
name:____________________________________________________________
date: ______________________
reading a bank statement
Directions:
Using the bank statement on the next page, answer the following questions:
1.
What period does this statement cover? * 12/20/99 - 1/18/00
2.
What is the account number of this statement? * 0471-678
3.
How many deposits were made? * Three
What were the amounts? * $1200, $521.78, $258.90
4.
How many checks cleared? * Six
What was the total dollar amount of the checks that cleared? * $1590.25
5.
How many ATM transactions were there? * Three
6.
What was the total amount of debit card transactions? * $35.00
7.
What did service charges cost? * $3.50
8.
What is the new balance of the account? * $883.97
9.
Did check #182 clear? * Yes
What was the amount? * $17.00
10. Did check #185 clear? * No
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activity key 6-3c
name:____________________________________________________________
date: ______________________
reconciling an account
Directions:
Use the bank statement, the check register, and the reconciliation worksheet on the following
page to balance this checkbook.
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activity 6-3d
name:____________________________________________________________
date: ______________________
reconciling an account
Enter
the New Balance shown
on your statement
$ ________
Add
any deposits or transfers listed
in your register that are not
shown on your statement
$ ________
$ ________
$ ________
Total
+ $ ________
Calculate the subtotal
$ ________
Subtract
your total outstanding
checks and withdrawals
- $ ________
Calculate the ending balance
This amount should be the
same as the current balance
in your check register
$ ________
Use the reconciliation worksheet above to answer the following questions:
1.
What is the new balance shown on the statement? __________________________
2.
Not all deposits listed in the check register are shown on the statement.
How much was the deposit that did not show up in the statement? ______________
3.
Add the new balance and any deposit not shown on the statement.
What is the total? ____________________________________________________
4.
What is the total amount of outstanding checks and withdrawals? ______________
5.
What is the ending balance? ____________________________________________
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activity 6-3d, cont.
name:____________________________________________________________
date: ______________________
reconciling an account
Enter
the New Balance shown
on your statement
$ 103.69
Add
any deposits or transfers listed
in your register that are not
shown on your statement
$ 253.17
$ ________
$ ________
Total
+ $ 253.17
Calculate the subtotal
$ 356.86
Subtract
your total outstanding
checks and withdrawals
- $ 36.31
Calculate the ending balance
This amount should be the
same as the current balance
in your check register
$ 320.55
Use the reconciliation worksheet above to answer the following questions:
1.
What is the new balance shown on the statement? * $103.69
2.
Not all deposits listed in the check register are shown on the statement.
How much was the deposit that did not show up in the statement? * $253.17
3.
Add the new balance and any deposit not shown on the statement.
What is the total? * $356.86
4.
What is the total amount of outstanding checks and withdrawals? * $36.31
5.
What is the ending balance? * $320.55
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activity key 6-3d
using banking services
lesson outline
additional activities for practice and generalization
of concepts related to using banking services
■
Take a field trip to a local bank to allow students to view various banking processes.
■
Set up a classroom “bank” where students practice making deposits, making withdrawals, and
cashing checks using “play” money. Stock the student bank with mock checks, deposit and
withdrawal forms, and check registers.
■
Construct a classroom ATM with keypad numbers and written instructions. Have students
practice punching in a password and selecting desired transactions.
■
Establish a classroom checking system that allows students to “earn” money for their account
by completing assignments, then “buy” desired activity options or rewards by writing checks.
Students are responsible for maintaining a check register of their deposits and check
withdrawals.
■
Invite a representative from a local bank to speak to the class about various banking services,
including ATM and debit cards. Ask the representative to provide a variety of forms for
students to complete.
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teacher’s guide