STUDENT LEARNING PLAN Lesson 5-1: Checking Accounts

STUDENT LEARNING PLAN

Lesson 5-1: Checking Accounts

OVERVIEW

Nothing beats the feel of a crisp new $20 bill in your hand. But as you move toward the "real world" after high school, you'll run into situations where handing someone cash isn't the best option--if it's an option at all. And credit cards aren't always the best choice either. Especially since the interest can mushroom into a mountain of debt fast. Luckily, there are plenty more ways to spend and receive money.

In this lesson you will learn about how to use a checking account.

LEARNING OUTCOMES

In this lesson you will use a checking account to handle business transactions. Along the way you will:

Discuss reasons to use check payments.

Demonstrate how to use a checking account.

Explain how to reconcile a checking account.

Demonstrate what you learned by using a checking account.

__ 1.

LEARNING TASKS

These tasks match pages 3-21 in Student Guide 5.

There's a new song you want--quick! Brainstorm as many different ways you can shop for and/or pay for this item.

__ 2. Brianna knows how to handle gift cards and cash but has never had to use other ways to pay for items. Have you? Find out how checking accounts are used for payments.

__ 3. Learn how to use a checking account to give and receive money. Complete Activity 5.2: Check Writing 101 and Activity 5.3: Make the Deposit for practice.

__ 4. Jason paid out a lot of money in fees because he wasn't tracking his spending. Can you do any better? Complete Activity 5.4: Keeping Track and the Balance Zoe's Bucks task to practice keeping track of payments and deposits from a checking account.

__ 5. Demonstrate how to track checking account payments and deposits. Complete Challenge 5-A: Use a Checking Account. Reconcile the account at the end of each month to verify your calculations.

TAKING IT HOME

Ask an older family member if s/he has ever used a check cashing service. If so, ask about the pros and cons to using check cashing services and ask if there was a fee charged for using the service.

FURTHER PRACTICE

Complete a Check Writing tutorial on the Goodwill Community Foundation education website, moneybasics/6. Additional tutorials are available on this site for additional practice.

?2014 National Endowment for Financial Education High School Financial Planning Program



FURTHER STUDY

A written check is a contractual agreement used to transfer money from one person to another. When you open a bank account, you sign papers that are also considered a contract. Research the rights and responsibilities of using various payment methods, including check, debit card, money order, or gift cards.

Lesson 5-1: Checking Accounts June 2014

Activity 5.1: Proof of Payment

NAME:

DATE:

Directions:

Give two instances in your life when a check is a good option to use as proof of payment rather than paying with cash.

?2014 National Endowment for Financial Education High School Financial Planning Program



Activity 5.1: Proof of Payment June 2014

Activity 5.2: Check Writing 101

NAME:

DATE:

Directions:

Practice writing checks for the following purchases. Always use permanent ink to write a check, and be sure your handwriting is legible. In a real situation, you want to be sure that the bank can clearly read the check to deduct the correct amount from your account. Don't erase or cross out errors. If you make a mistake, print "void" across the check, and then write out another check. You will find an example of a written check on page 8 in the Student Guide.

Use your own name, your school name, and today's date to write checks for these transactions:

Buy a pair of tickets for an upcoming school event with a check payable to your school,

$42.50

Pay rent to Mayfair Apartments, $750 Contribute to a disaster fund with a check payable to the American Red Cross, $5

Tips for writing numerals on checks:

The check amount is written twice on a check to verify the amounts. The bank will question the validity of the check if both amounts don't match.

Write the amount in figures in the box on the right side of the check, and write the same amount in words on the line below beginning as close to the left of the check as possible. After all, you don't want anyone to make adjustments to the numbers after your write the check!

When writing out dollar amounts in words, write the amount as you say it out loud. For

example, $7,450 is written as seven thousand four hundred fifty. The word "dollar" is already on the check to the right, so you don't have to repeat the word.

When spelling out large numbers, use a hyphen to connect a word ending in ?y to another

word. Examples: twenty-one or ninety-nine.

You don't need to use the word "and" after "thousand" or "hundred." Just write the amount.

Only write the dollar amount in words on the text line, not the cents amount. Any amount less

than a dollar is shown as a fraction. Example: 52.31 is written as fifty-two and 31/100.

To discourage anyone from modifying your written amount, fill in the line completely. Add a

wavy line to the right of the amount if necessary. Do the same after the payee's name so no other name can be added to the check.

?2014 National Endowment for Financial Education High School Financial Planning Program



Activity 5.2: Check Writing 101 June 2014

Activity 5.2: Check Writing 101

_______________________________

20100185

002003004

1095857723 1015

_______________________________

1016

002003004

1095857723 1016

_______________________________

1017

002003004

1095857723 1017

?2014 National Endowment for Financial Education High School Financial Planning Program



Activity 5.2: Check Writing 101 June 2014

Activity 5.3: Make the Deposit

NAME:

DATE:

Directions:

Brianna received money for her birthday. To stay on track for her saving goals, she wants to deposit all of the money in her savings account, except $20 for spending. Fill out a slip to deposit a $35 check and a $50 bill into her savings account #101-234556-678.

About the Endorsement

Regardless of how you deposit a check, you need to endorse it first by signing your name on the backside, behind the "pay to the order" phrase. This completes the transaction to transfer money from the check writer to the person receiving the check.

Here's an example of Brianna's endorsement:

Brianna Richie

?2014 National Endowment for Financial Education High School Financial Planning Program



Activity 5.3 Make the Deposit June 2014

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