lesson six
banking services
presentation slides
beware the high cost of financial services
pawn shops charge very high ___________ for loans based on the value of tangible
assets (such as jewelry or other valuable items).
rent-to-own programs offer an opportunity to obtain home entertainment systems or
appliances for a small ____________ ___. However, the amount paid for the item
usually far _________ the cost if the item were bought on credit.
check-cashing outlets charge high _____(sometimes 2 or 3 percent) just to have a
paycheck or government check cashed.
check-deferral services allow consumers to get a cash ____________on their next
paycheck. However, these short-term loans are very _____________. A $200, two-week
advance may cost over $30 (with annual costs exceeding $900).
teens – lesson 6 - slide 6-A
compare checking accounts
location
branch offices; hours of ____________; availability of ______
fees
monthly fees; per __________fees; printing of checks; balance _________ fees; ____fees
other charges
____________charge; __________________fees; certified check fees
interest
rate earned; minimum ______________to earn interest; fee charged for falling ________necessary
balance
restrictions
_________balance; deposit insurance; holding period for deposited checks
special features
direct ____________; automatic _____________; overdraft ___________; online banking; discounts
or free checking for ____________, _____________, or __________________of certain companies
teens – lesson 6 - slide 6-B
opening a checking account
teens – lesson 6 - slide 6-C
making a deposit
1. Write the ____of the deposit in this field.
2. If you are depositing currency (_________),
write the total amount here.
3. If you are depositing ______, write the total
amount here.
4. If you are depositing a check, write the bank
transit number here, which is the top portion
of the two-part number printed in the upper
corner of the check.
5. Write the ____________ of the check here.
6. If you are depositing more checks than can be
listed on the front, continue to list them on the
____, and write the ______ amount of the
checks on back here.
7. Write the total amount you are _________ here.
8. If you are making a deposit inside a bank with
a teller and you want to receive ____ back from
your deposit, write the amount you want in
this field.
9. Write the total amount (less cash back) of your
_____________ in this field.
teens – lesson 6 - slide 6-D
Make the Following Deposits
1. September 15, 2010 - $45.00 cash, .87 coins, check – 203.56, check 19.87. Less cash received of $200.00. What is your total deposit?
2. September 22, 2010 - $20.00 cash, Check – 34.55, Check – 57.98. Less
Cash received $55.00. What is your total deposit?
3. September 23, 2010 - $32.00 cash, 1.65 coins, Check – 36.89, Check –
285.99, Check – 14.87, Check – 48.99, Check – 183.99. What is your
total deposit?
Deposit Slip
45 00
87
203.56
Sept 15
19.87
269.30
200.00
69.30
Back side of deposit slip
Who can endorse a check? The only person who can endorse a check is
the one whose name has been written on the _____ of the check. Or the users of the
account. A check made to McDonalds can be endorsed only by the people listed on Endorsing
the _________ at the bank.
a check
Blank/open endorsement
Anyone can _____ check. Once it’s
signed anyone can ____ the check.
Restrictive endorsement
____secure than blank endorsement. If it says
For Deposit only, it cannot be turned in for ____.
Special endorsement
Transfer check to _______ party
teens – lesson 6 - slide 6-E
Practice endorsing checks
1. Endorse a check that was made out to you. You just got the check from your
mom and you’re at the bank ready to cash it. Endorse it with a blank
endorsement.
2. Endorse a check that was made out to you. You got the check from Farmer
Bob for rock picking on May 28. You cannot go to the bank, but your friend
will bring it in for you. You want the money deposited into your checking
account. Endorse the check with a restrictive endorsement.
3. Endorse a check that was made out to you. You got the check from Sally
Smith for baby sitting on September 17. You owe money to your mom, so
you want to give the money to her. Endorse the check with a special
endorsement of pay to the order of: your mom’s name and sign below that.
Endorse a Check
writing a check
1. Date Enter the _____ on which you are writing the check.
2. Payee Enter the _____of the person or the ________you are going to give the check to.
3. Amount of check in numerals Enter the _________of the check, in __________. Don’t leave any
space between the pre-printed dollar symbol ($) and the numbers indicating the amount of the check;
there should be no room for someone to add in extra _____________.
4. Amount of check in words Enter the amount of the check in ______. Start writing at the far ____ side
of the line. Follow the dollar amount by the word “and,” then write the amount of _____over the number
100. Draw a _____ from the end of the 100 to the end of the line.
teens – lesson 6 - slide 6-Fa
writing a check (continued)
5. Name Your ____________ information is printed here. Never list your _______
_____________number on your printed check.
6. Signature Sign your check _______ the way you signed your name on the signature card you
filled out when you ________ your account.
7. Memo Use this space to ______ why you wrote the check. If you are paying a bill, this is a
good place to put information requested by the company.
8. Identification numbers These numbers are used to identify the _____, your account
________, and the check ________. They are printed in a special magnetic ink that machines
can read.
teens – lesson 6 - slide 6-Fb
Practice Writing a Check
• On September 10, you write a check #106 to
your mom for $46.94.
• On September 17, you write a check #107 to
Burger King for $8.67.
• On September 19, you write a check #108 to
Mr. Luke for $12.00 for a WMS T-shirt. You
wrote the check out to the wrong person, so
you need to void it.
• On September 19, you write a check #109 to
WMS for $12.00 for a WMS T-shirt.
Write Your Checks Here
___
___
___
___
keeping a running balance
(a) Keeping a Running Balance: Check Transaction
One line entry
161
6/4
Sound Out – new tape deck
216 30
150 67
(b) Keeping a Running Balance: ATM Cards
teens – lesson 6 - slide 6-Ga
keeping a running balance (continued)
(c) Keeping a Running Balance: Check Cards
teens – lesson 6 - slide 6-Gb
Practice Recording these Transactions
• On September 10, you write a check #106 to your mom for
$46.94.
• On September 17, you write a check #107 to Burger King for
$8.67.
• On September 19, you write a check #108 to Mr. Luke for $12.00
for a WMS T-shirt. You wrote the check out to the wrong person,
so you need to void it.
• On September 19, you write a check #109 to WMS for $12.00 for
a WMS T-shirt.
• On September 20, you use your check card at Fareway to buy
groceries for $79.66.
• On September 20, your paycheck for $490 is automatically
deposited.
• On September 21, you use your ATM card to withdraw $40.00.
• On September 22, you use your check card at Scheels to buy a
$22.00 birthday present for your dad.
Record the Transactions Here
reading a bank statement
1
Match this up with your check register. Look for any checks that are in your register, but are not on the bank
statement. Look for any deposits that are on your register, but not on the statement. Notice check 185 isn’t listed
on the statement.
teens – lesson 6 - slide 6-H
ATM
5/12
Deposit
521.78
DirD
184
185
181
ATM
Trans
5/17
5/17
5/19
5/24
5/24
5/27
Direct Deposit-paycheck
258.90
183
186
187
182
ATM
ATM
5/26
5/30
6/03
6/4
6/15
5/30
State Farm – Car Insurance
John Smith
Perkins
Transfer of money from savings
Scheels
Wal-MArt
Fareway
Center Sports
1232.27
30.00
15.00
40.00
1200.00
217.54
54.47
53.97
17.00
20.00
20.00
771.08
1292.86
1551.76
319.49
289.49
274.49
234.49
1434.49
1216.95
999.41
944.94
890.97
873.97
853.97
reconciling a checking account
step 1: Obtain the current _____________from your bank _______________.
step 2: Add any deposits that you have recorded in your check register but that are
_____ on this statement.
step 3: Subtract any outstanding checks (checks you have written but that have
____yet ________the banking system).
step 4: Compare the result with the current __________in your check _________.
Note:
The balance in your check register should be adjusted to include: (a) deductions for
service fees or other charges; (b) additions for direct deposits and interest earned.
teens – lesson 6 - slide 6-I
Banking Vocabulary
ATM -- ______________ ___________ ______________.
automatic payments… utility companies, loan payments, and other businesses use an
automatic payment system with bills paid through ______ _________from a bank account.
bounced check-- A check that a bank has __________to cash or pay because you have
___ money to cover it in your account.
check-- A written ___________ instructing a bank to pay money from the writer's ______.
checking account -- An account for which the holder can write _______.
currency -- Money -- In practice, currency means ______, particularly paper money.
Bankers often use the phrase "coin and currency" to refer to _______ and ___________.
teens – lesson 6 - slide 6-J
Banking Vocabulary
•
debit card -- A banking card enhanced with _____ (automated teller machine)
and _____ (point-of-sale) features that can be used to purchase goods and
services ______________. The card may require the user to sign his or her
________or enter a ____(personal identification number) into special
equipment.
•
direct deposit… earnings ______________ deposited into bank accounts, saving
time, effort, and money.
•
deposit slip -- An itemized slip showing the exact amount of paper money, coin,
and checks being ____________ to a particular ___________.
•
endorse -- To sign, as the payee, the ______ of a check before cashing,
depositing, or giving it to someone else.
•
overdraft -- A check written for ______ money than is currently in the _______.
If the bank refuses to cash the check, it is said to have "bounced."
Banking Vocabulary
•
•
•
personal identification number (PIN) -- A _____ that provides _________ for
consumers at an ATM.
point of sale (POS) -- The store or other location where a transaction takes
__________.
withdrawal -- An amount of money taken ______ of an account.
Smart Cards
smart cards, sometimes called “electronic wallets,” look like ATM cards; however,
they also include a ______________.
• This minicomputer stores ____________ amounts for buying goods and services.
• A smart card can also store data about a person’s account ___________,
transaction records, insurance information, and medical history.
• Uses for smart cards may expand in the ___________.
teens – lesson 6 - slide 6-K