Money Matters
Things You Need to Know About
Money and Bank Accounts
Paper Money
American paper money in all denominations is the
same color and the same size. One, 5, 10, 20, 50 and
100 dollar bills are most commonly used. Each bill will
have a picture of a famous American on the front, and
the bill's numerical denomination on each of the four
front corners. You will have to be careful not to
confuse the denominations.
Coins
American coins are even more confusing than currency
notes. Nowhere on an American coin will you find a number
value. For some reason, the amounts are spelled out. Nor are
the coins minted in size order. Commonly used coins are the
one-cent piece (penny), five-cent piece (nickel), ten-cent
piece (dime) and 25-cent piece (quarter). Fifty-cent pieces
are rarely seen.
The penny is copper-colored and reads "one cent" on the
bottom reverse. The nickel is a bit larger and reads "five
cents" on the bottom reverse. The dime (10 cents) is the
smallest coin, and, rather than "ten cents," reads "one
dime." The quarter (25 cents) is larger than the other three
coins and reads "quarter dollar" on the bottom reverse.
Checking Account
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Allows you to write checks against your account, up to the
available balance. If you don't have enough money in your
account for a check you write, the check will "bounce" and the
bank will return it unpaid to the person you wrote it to. You
both will be charged an extra transaction fee (about $30).
You'll use checks to pay for such items as rent, electric and
telephone bills, insurance payments, mail-order goods, and so
forth. You may often pay by check when shopping in person. If
the store doesn't know you, they will want identification;
usually at least one major national credit card plus a driver's
license.
Check Etiquette
• Cash Back. It is not customary or polite to ask a merchant if
you can write a check for more than the balance as a means to
get ready cash, except, to a limited degree, in supermarkets.
Supermarkets have special procedures for paying by check.
You'll probably have to apply for a special check cashing card
with the supermarket manager, and sometimes you'll have to get
each check approved by the manager before you get in line with
your purchases. The supermarket will have a limit ($25.00 or so)
on how much cash you can get back above the amount of your
purchase
• Bouncing a Check. Not having money in the bank to cover a
check you write is considered an embarrassment in the United
States. If you bounce a check you write to a merchant, they will
probably charge you an extra fee themselves easily accessed,
not usually interest bearing
Your Checking Account
Your Checking Account
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Date: Write in the day you are filling out the check
Pay to the Order of: Write in the name of the person(s) or place to whom
you are writing the check
$ Amount: Write the amount the check is for in Arabic numerals. When
you write the number, start at the left and don't leave space. People could
add in more numbers if you leave room
Dollars: Write, in words, how much the check is for. When you write the
words for the dollars, start at the left side. Write any cents as a fraction.
Draw a line through the extra space
Signature: Sign your name here, just like it is on the top of the check.
Don't sign it until you use it. If you sign it ahead of time, someone else
could use the check
Memo: Indicate what the check payment is for (like “groceries”, “car
payment”, or “rent January 2006”; it is also a good idea to write the
account numbers associated with the bill you are paying.)
Keep Track of Your Account
Keep Track of Your Account
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Number: This is the check number. You'll find it in the upper right hand corner of
each check. Every check has a different number.
Date: Write in the date of the transaction.
Description of Transaction: This tells what happened. Did you deposit money? Did
you write a check? Use the Automated Teller Machine (ATM)? Make a telephone
transfer? Describe your transaction here.
Payment/ Debit: This is the amount of the check or how much the withdrawal is for.
Code for Transaction: This is where you fill in a code for transactions you make when
you aren't writing a check. When you get your statement, every month you'll place a
"√" through this box if you see the transaction listed.
Service Fee: If your financial institution charges you money to write each check, or to
withdraw money from the ATM, write that fee in this space.
Deposit/Credit: Did you deposit money into your account, does your statement say you
earned interest? Write down the amount here.
Balance: To find out how much money you have, add the deposited money to what you
had before. Or subtract the withdrawal amount from what you had before. The money
left is your balance.
Keep Track of Your Account
Balancing Your Checkbook
Once a month, when you get your
statement from the bank, go through the
transaction record and make sure the
statement matches your records. Did all
the checks “go through”? Did you earn
any interest or incur any fees you didn’t
know about? Make sure all the numbers
add up, and if they don’t, FIND OUT WHY!
Automated Teller Machine
Many banks offer automated teller machines (ATM's). These might be at your
bank's branch, but the bank may also be a member of a network that will allow
you to take money out or do certain transactions at hundreds of different
machines at different banks. Some machines allow you to "drive-in" and use
them without getting out of your car. Depending upon your bank and local
regulations, you might pay a small fee for using an ATM.
You will be given a plastic bank card and a secret access code number. You will
place the card into the slot in the ATM then press in the access code numbers.
The machine will only give you money if it matches the data from the card with
the proper access code number. It is therefore very important to memorize
your code number, or at least to keep it written down in a place separate from
the bank card. If your bank card is stolen, the thief will not be able to use it to
withdraw money from the ATM without the code number.
The area around ATM machines is a popular place for thieves to rob
unsuspecting people. ALWAYS be aware of your surroundings when using the
ATM. If you see someone lurking outside, get back into your car.
Debit Card/Check Card
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Look like credit cards or ATM cards, but act
like cash or a personal check
Debit/Check cards are “pay now”,
Credit cards are “pay later”
Is your ATM card also a Debit/Check Card?
Look for the MasterCard or Visa logo
ATM Cards are only good at Automatic Teller
Machines
Debit/Check Card Features
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Easier to get than a credit card
Don’t have to give personal information to a vendor
Don’t have to carry cash or a checkbook
Can be used almost anywhere that accepts credit cards (most
large merchants and lots of small ones)
Sometimes accepted where paper checks aren’t
Returning goods or canceling services purchase with a debit card
is treated as if the purchase were made with cash or a check
No “grace period”
There may be less protection than with a credit card purchase
for items which are never delivered, are defective, or were
misrepresented. (You may dispute unauthorized charges or
mistakes within 60 days, contact your bank if you cannot resolve
the issue with the merchant)
Financial Safety
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Report lost or stolen checks/cards to the bank immediately
If you think someone else is using your debit/check or credit card
number, report it to the bank immediately
Hold on to your receipts! Someone can get the information they
need to use your number from them
Check your receipts against your bank statement
Memorize your PIN (personal identification number)
Never share a PIN
Keep track of ALL your transactions in your check register
Ask the bank what your financial responsibility is for a lost or
stolen card (or number) if you report it
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within 2 days ($50 or less)
Within 60 days ($500 or less)
Over 60 days – you are responsible
Never give personal information to someone on who calls you to
“verify” your account information”