Checking Accounts

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

U.S. Mint Video

Federal Reserve Cont.

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

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

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

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

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

The New Color Of Money 2006 2008 Progress Update 2003 2004

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.

Checking Acct video – new one

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

Checking Acct. Types

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

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

Deposits • Deposit form • Record your deposit

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

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

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

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!

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

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

Identity Theft Video & make flier See flier & booklet

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

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

Consumer Protection and Responsibilities

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

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

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

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

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

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

Checking Accounts