Essential Guide to Writing Checks and Managing Payments

1. Creative Living pg. 311 • Write the answers on the back of the worksheet on the middle table • Get a pair of scissors

2. Making payments:*Writing a check*using a debit card*balancing a check register

3. The Checkbook • Contains: • Checks • Deposit slips

4. Writing Checks

5. When writing a Check: • Your telling your financial institution to take a certain amount of money out of your account. • You should be careful to write checks correctly to avoid costly and embarrassing mistakes. • A blank check has a space for quite a bit of information. When you write a check, you will want to fill in each of the spaces correctly.

6. Tips for writing a check: • Always use ink. • Date the check the day it is written, even if it’s Sunday or a holiday. • Do not postdate a check, financial institutions will not cash a check before the date that is written on the check. • Most businesses will not accept a postdated check as payment.

7. Who is the check for? • In the blank after the words “Pay to the order of” write the name of the payee. • Spell it correctly, and do not use any abbreviations that may cause confusion. Write a check to the person beside you

8. How much is the check for? • Record the amount of money to be paid clearly in the space after the dollar sign. • Never leave a space between the dollar sign and the numerals (this may allow someone to alter the amount). Write the check in the amount of $1729.32

9. Write amount in words… • On the next line, write out the amount of dollars in words. • Then write the word “and,” followed by the number of cents written as a fraction of 100. • Start with writing at the extreme left of the blank. • Fill in any leftover space with a line.

10. Write yourself a note… • Most checks have the word “for” or “memo” and a blank in the lower left-hand corner. • You do not need to fill in this blank, but doing so will help you keep clearer records. • When you write a check for a purchase, make a note of what you have bought.

11. Sign It! • Finally, there is a blank for your signature. • Always use the same signature you filed with your financial institution. • Be sure you have written the name of the payee and the amount to be paid before you sign the check.

12. Don’t forget… • Immediately after writing a check, make a note of it in your check stub or in your register. • Write the check number, the date, the payee, and the amount in your register. • This is necessary for complete and accurate records. • never cross out or change a check once it has been written • If you make a mistake, print VOID across the incorrect check and write a new check

13. Electronic Banking • ATM transactions • Debit card transactions • Electronic bill pay

14. Debit Card A debit card lets you: • Deposit and withdraw money • Make purchases at retail locations Be careful! • The money is immediately taken out of your account

15. Electronic Bill Pay • Automatically pays your bills from your account • No postage • No late payments • Also pay bills online

16. Add Money to Your Checking Account • Cash or check deposit using the teller service • ATM deposit • Deposit by mail • Direct deposit

17. Sign the Back of the Check

18. Deposit Slip- label the parts 3/22/20XX Deposit your paycheck for 789.52 You want $100 in cash Add this transaction to your register

19. ATM Deposits • Like an ATM withdrawal • Use the special deposit envelope • Take the receipt

20. Direct Deposit • Directly into your checking account • Your money is available immediately

21. “Bad” or NSF Check • A check you write when there isn’t enough money in your checking account to cover it • Also called a “bounced check”

22. Consequences of Writing Bad Checks • Bad check fees • Negative activity reported • Bank closes your account • Civil and/or criminal prosecution • Merchants may not accept your checks • Your credit may be impacted

23. Write these on the back of your worksheet

26. Write the checks and Fill in your check register