Checking- The Basics
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Checks and Accounts! Personal Finance
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Transcript of Checking- The Basics
Checks and Accounts!
Personal Finance
Choosing An Account• Fees and Fines- You might be charged a fee each
time you write a check, use an ATM, or over draw your account. You can also be charged if you don’t keep enough money in an account.
• Interest- some checking accounts pay you interest if you keep a certain amount of money in the account.
• Minimum Balances- Many accounts require a minimum amount kept in your account to avoid a fee.
Managing your Checkbook• Use the check register to record all transactions. • Write the amount of deposit or subtract a
payment/purchase. • Check your account statement and compare it to
your check register. • If balances don’t match, be sure to recheck your
math and transactions.• If issues still continue, notify your bank!
“BOUNCING” a Check• When you write a check for money not in your
account• Called an Overdraft• Two things can happen: – Bank will pay the check and notify you that you
owe money and charge you an overdraft fee. – Return the check to you or the business. You will
have to pay a NSF (Not sufficient funds) fee to both the bank and the retailer where you wrote the bad check.
Lost or Stolen Checks
• Report any losses or stolen checks to your financial institution immediately.
• You may also want to notify the police if checks are stolen.
• A security will be placed on your account and your checks will be examined.
Checking Tips• Treat checks like cash- Keep them in a safe place. • Don’t take checks that appear altered and don’t
make changes on checks. • Don’t sign blank checks• Don’t make checks out to “CASH” • Destroy all blank checks and unused deposit slips• Don’t let merchants (retail owners) write your
credit card number on checks. • Have identification ready to show the cashier. It
is a security measure to protect YOU.
Electronic Money• ATM (Automated Teller Machines)- Allow you to get
cash, transfer money, deposit checks.• ATM cards are often available when you open an
account. You need to maintain a minimum balance to help prevent an overdraft fee.
• Keep your ATM Pen safe (password) • MasterCard and Visa Debit Cards- Look like credit cards,
but are not. • Accepted where ever credit cards are accepted and used
like checks– The money comes straight out of your Account.
• Sometimes there are fees associated with these cards.
Keep your money Safe• If you choose your pen, keep it a random
number. No birthdates, addresses, or lucky jersey numbers
• Memorize your pen, don’t write it on the card or leave it at home.
• Don’t let others watch you as you punch in your pen at walk-up or drive-up ATMs.
• Be aware of your surroundings at ATMs– make sure they are well lit and avoid going at night.
• Limit the amount you withdraw every month and enter into transaction registers.
1. Date
2. Payee
3. Numerical Amount
4. Written Amount
5. Reason for check
6. Endorsement- In Cursive
Make sure there are NO blank spots
Notes about Writing Checks:• NO Blank Areas! draw a line though any open spaces. • Write clearly & only use ink to help prevent anything from
being altered or changed.
• Your check is not legal until you sign it. Also, never sign a blank check.
• Make sure the amount box and written amount match.
• Write VOID across a check when you make a mistake!
Notes Continued: • Keep a record of all written check numbers– never reuse
check numbers
• When paying with a check- have your ID ready to show.
• A common mistake is an amount such as $100.42 is
incorrectly written as One-hundred forty-two instead of One-hundred and 42/100. If you do this, the larger amount may be deducted from your account.
• Don’t forget to write check amounts and numbers in your
transaction register.
