Motivational Quotes • Early failures, dismal classroom performances, disastrous academic records and dreadful SATs will defeat those who allow these academic measurements to dishearten their souls. But if one keeps working toward lofty goals, one can and will succeed in America. Luck has nothing to do with it. You are only lucky that you live in America, especially if you plan on becoming the comeback kid. • The harder I work, the luckier I become.
Checking and Online Accounts Consumer Math 2012-2013
Overview • Ways to cash a check • What is/Why use a checking account • Choosing a bank • Credit Unions • Debit Cards
Choosing a Bank • Location • Hours of operation • Open late any nights • Weekends • Monthly service charges • Student • Adult (Fee $9-12 month unless:) • At least $1,500 Balance • Direct Deposit > $500 every month • Total balance of $5,000 in combined savings, checking, other balances with bank • Direct Deposit • Electronic Services • Debit Cards • Automated Teller Machine (ATMs)
Sample Questions to Ask Yourself • Do you have a branch near where I live or work? • What are your hours? • What types of accounts do you have? Will I be charged a monthly fee? • Will I be charged a fee to speak with a teller? • Do I need to keep a certain amount of money (“minimum balance”) in my account? What will I be charged if I do not keep this balance? • Is there a phone number I can call to check my balance? Is it a free call? • Do you have ATM machines? Are there fees for using an ATM? • How much will it cost to order checks? • Is there a fee for every check I write? • What is the fee if I write a check that is for more than I have in my account (a “bounced” or bad check)? • How much does “overdraft protection” cost to keep me from “bouncing” a check? • How do you keep my information private?
Checking account • Write checks to pay bills • Document withdrawals/deposits from balance on account • Cash checks • Deposit checks/cash/change • Electronic Payments • Send payments electronically • Schedule • Receive payments • Deposit on smartphone • ATMs
Ways to Cash a Check • Endorse • Cash Checking Service • Expensive (5% of check) • Bank • Balance in account must be amount of check • Employer’s Bank
Check Writing Tips • Write in ink. • Fill in all of the line so that no one can add numbers later. • Never sign a blank check. • Consider buying duplicate checks. It costs more, but you always have a copy of the checks for your records. • You do not have to buy your checks at the bank. You just have to give a company your bank’s routing number and your account number to have them print your checks.
Credit Union • Members who have accounts in the credit union are the owners of the credit union and they elect their board of directors • Generally speaking, credit unions see themselves as of "higher moral ground" than banks; they feel that they are "community-oriented", and "serve people, not profit • Significantly higher customer satisfaction rate with the quality of service at credit unions • A credit union's policies governing interest rates and other matters are set by a volunteer Board of Directors elected by and from the membership itself • Normally, only a member of a credit union may deposit money with the credit union, or borrow money from it. As such, credit unions have historically marketed themselves as providing superior member service and being committed to helping members improve their financial health.
Using a Debit Card • ATM • Benefits • Restrictions • Uses • Personal Identification Number (PIN) • Cash Substitute • How it works • Fees
Example 1 Rocco wants to buy shoes for $85. How much should he withdraw from his ATM that disburses $20 bills?
Example 2 Tania used her bank’s ATM to withdraw $160. This was the 6th time she used the ATM in October. Her bank does not charge for the first five ATM uses each month. After that, the fee is $1.50 each use. What is the total she should subtract from her balance including fees?
Example 3 Eric used his bank’s ATM to withdraw $80. This was the 2nd time he used the ATM in October. His bank does not charge for the first five ATM uses each month. After that, the fee is $1.50 each use. Before he used the ATM, his balance was $750.20. What is new balance?