Identify and define the types of accounts available.Analyze account management strategiesCorrectly fill out a check, deposit slip, and check registerCorrectly reconcile a bank statement

Banking in the 21st Century

Types of AccountsBasic checkingFree CheckingInterest-bearingJoint CheckingExpressLifelineSenior/studentMoney Market

Basic CheckingUse to pay billsUse a debit card to pay for daily expensesDirect deposit or minimum balance

required to avoid feesLimited # of checks per month

Per item fee for exceeding the limit

Free CheckingNo monthly service charges or per-item

fees regardless of balance or activityFees for overdrafts

Interest-bearingMinimum balance required to openHigher balance required to avoid feesPays a low interest rate

Joint CheckingOwned by two or more people

Both have equal access to the accountGood Bookkeeping essentialHigh fees for overdrawn accounts

Express CheckingBank primarily by ATM, telephone or

personal computerUnlimited check writingLow minimum balanceLow or no monthly feesLimited access to live teller

LifelineNo-frills account for low income peopleLow feesLow or no minimum balanceAllow a # of checks to be written each

monthRequired by law in some states

Senior/Student AccountSpecial deals for seniors or students

Free checksFree ATM useVarious discounts

Money MarketCombines Checking and SavingHigh minimum deposit to openHigher interest rateLimited checks per month (3-5)

Which Account is for Me?How many checks do you write each

month?Do you want to maintain a minimum

balance to avoid fees?Do you bounce checks occasionallyDo you need a mailed statement each

month?Are you comfortable online or do you want

a person to talk to?

Label the parts of a check1.

7.

3.4.

5.

6.2.

Check #

Amount

Signature (Payor)

Account #Routing #

Written Amount

Payee 8. Date

Checking Terms to knowDebitCredit Outstanding Check

or Deposit

Reconcile a statement

Endorsement

Account Balance

item that doesn’t show on your statement or that hasn’t yet been processed by the financial institution

The amount of $ in the account.

amount subtracted signing the back of a

check matching your records to

the financial institution’s records

amount added

Steps to Reconciling Your Account

1. Compare Account Statement to Check Register

Check off the items that match in the register and on the statement

2. Record any outstanding checks , deposits or fees in the register and on the reconciling worksheet.

3. Complete the reconcile worksheetThe balance in your check register should now match the

balance on your statement reconcile worksheet.

If the numbers don’t match up, try again.