Understanding Checking Accounts: Your Guide to Responsible Spending and Financial Safety

1. Checking Accounts What Kind of Spender are You? Take the Spending Challenge!

2. U.S. Mint Video

3. Federal Reserve Cont.

4. The Federal Reserve Created 1913 • Goal: Economic stability • Monetary Policy • Influences growth of money/credit • Bank for banks • Payroll, large payments, provide cash • Bank for govt. • Taxes go here to pay for military payrolls & SS • Supervisor/regulator of banks • Oversee institutions

5. The Role of Banks (private entities) • Banks are in business to earn a profit • Interest charged for lending • Interest depositors paid lower than interest bank charges = income • Banks provide security • Protect your money’s purchasing power • Banks are regulated

6. The Role of Banks Cont. • FDIC (Federal Deposit Insurance Corp) • Insures maximum $250,000 • Money and financial transactions • Barter • Trading good and services without using money • Work only if you have something the other person wants Internet: What is FDIC and Purpose

7. 10-J History of the Federal Reserve Bank of Kansas City http://www.kc.frb.org

8. Types of Money • Currency • paper money & coin • Check • order bank to pay sum to person named on check (payee)

9. The New Color Of Money 2006 2008 Progress Update 2003 2004

10. Did you know… • Susan B. Anthony $1 coin replaced by Golden Dollar in 2000 • $100,000 largest note produced • December, 1934 - January, 1935 • Used for transactions btn FRB • Not circulated to general public • $100 note is largest denomination currently issued in United States • “In God We Trust” • Didn't appear on U.S. Federal Reserve Notes until Series 1963 currency.

11. Checking Acct video – new one

12. Advantages of Using Checks • Safety • Lost or stolen • Replaced – cash can’t! • Convenience • Large purchases • Safer to send through mail than cash • Records of your transactions • Check • Bank sends statement • Written record of all transactions

13. Checking Acct. Types

14. Checking Account Costs • Checking account fees • Maintenance fee • Flat fee to cover cost of maintaining acct. • No matter how many checks you write • Service Charge • Charge for each check you write

15. Your Checking Account • Open a checking account • 18 or older • Signature card Hand out voc. sheet

16. Deposits • Deposit form • Record your deposit

17. Parts of a Check Check Number Drawer Date written Steven H. Williams 3456 Willow Road Maryville, MO 64468 (660) 562-3234 Payee Amt in figures Written Amt Nodaway Valley Bank Main Street Maryville, MO 64468 (660) 562-0000 :5434564436 433567 342 Drawee Drawer’s Signature Purpose of check Acct/Routing Numbers

18. Writing a Check Now you write a check! • Parts of a check • Use ink • Numerical amount vs. handwritten amount • How to fill one out

19. Endorsements • Blank • Your name • Restrictive • Restricts use • “For Deposit Only” • Special • Transfer ownership

20. Check Register and other info • Record checks in check register • Record each transaction • Record interest • Calculate your new balance • Record check numbers • Overdrawn • Stop payment • Void • Post-dated Now you fill one out!

21. Your Bank Statement • “Reconciliation” • Monthly statement • Transactions (deposits/wd) • Bank fees • Balancing or reconciling your account • Confirm transactions

23. Account Reconciliation • Make adjustments • Record any maintenance fees/interest earned in check register! • What if the bank made an error? • File your records • Canceled checks proof of transaction • Make get back or copy of Do Checking Simulation 1

25. Identity Theft Video & make flier See flier & booklet

26. Uses of Electronic Funds • Direct deposit • Automatic Payment • ATM • Point of Sale Transaction • Stored-value cards • Prepaid cards • Debit Card • Cyberbanking

27. Automated Teller Machines (ATMs) • EFT: electronic funds transfer • Your ATM card and PIN • ATM transactions – savings/checking • ATM deposit • ATM withdrawal • Fees • Use ATMs responsibly Act: Understanding ATM Fees Internet Search

28. Consumer Protection and Responsibilities

29. Different Checks for Different Purposes • Certified checks • Cashier’s checks • Money orders • Traveler’s checks Make fliers of different types

30. Certified Check • Personal check signed and stamped by bank • Guaranteed to have enough money in account to cover check • Written to specific payee • Low risk • Fee: $5-$20 • EX: buying 1st house or automobile • Taken out of your account & no longer have access to

32. Cashier’s Check • Bank’s OWN personal check singed by the bank • Request amount then pay bank and small service charge • Fee approx. $25 • Sometimes called bank money order or treasurer’s check • Do not need to have checking account • EX: buying 1st house or other property

34. Money Order • Check that draws on money of bank or other financial institution that issued it • Different than cashiers • Companies, not just banks, issue • Your name, not the bank, appears on check • Fee: $1-$10 • Ex: utility payment, phone bill

36. Traveler's Check • Form of payment often bought before going on trip • $20, $50, $100, and $500 denominations • Signed twice before being cashed • Safer to use when traveling than cash or personal check • Never expire • Fee: 1% of amount of checks • Can be replaced if lost or stolen

37. Other Services • Wire transfers • Electronic communication • Moves money from one acct to another • Large sums of money • Emergencies • Fee: $20-$40 • Safe deposit boxes • Individual boxes you rent from bank • Store valuables (car titles, birth certificate) • Fee: $30-$40 year • ID, sign, and have your key and obtain bank’s key to access Do checking simulation 2 and WB, QZ, Review, Test