Humble Independent School District



Title: Lesson 2- 5763260-21590Key00KeyChecking Account and Debit CardEngage: 2 minutes3304870590551234567001234567Which is the correct label for #7 on the check?24285708763000ADescription of transactionBAmount to be paidCPerson/company to be paidDReason for writing the checkEAccount holder’s signatureExplore: 5-10 minutes Using the checkbook shown below, write out all the checks require in the list of transactions. If you need help, look at the sample diagram A. Include the 1. your name/address, 2. date, 3. check number, 4. the payee, 5. the amount in words and numbers, 6. the purpose or description, and 7. your signature on every check!Let students explore on their own. They will have many questions and some will appear to be lost but that is when learning can happen!Explain: 10-15 minutes314198059690123455670012345567-4762559689Bonus question: “What is the number circled in blue called?”Routing numberAccount numberCheck numberThis is now the teacher’s chance to explain and ask questions to specific students. If you notice a student struggling during the explore, select them as the “volunteer” to go to the keyboard and ask those who were unsure.00Bonus question: “What is the number circled in blue called?”Routing numberAccount numberCheck numberThis is now the teacher’s chance to explain and ask questions to specific students. If you notice a student struggling during the explore, select them as the “volunteer” to go to the keyboard and ask those who were unsure.153543014795500. What is a debit card? Does it cost anything to use it? What do you think ATM stands for? What is a PIN?A debit card is a plastic payment card that is directly tied to a cash account. When the cash account used is a checking account from a bank, instant withdrawal of cash from automated-teller machines (ATMs) can be made using a personal identification number (PIN). The cost for each cash withdrawal transaction is usually free if the ATM used is owned by the same bank of the debit card. If not, the fee usually ranges from $2 – 5 per transaction.2. What is important to consider when choosing to open a checking account from different local financial institutions (banks and credit unions)?Cost (monthly fees, checks, ATM fees, NSF fees, etc), access (how many locations near you), interest rates (high APR on savings or low APR on loans), services (online statements, email alerts, electronic payments), and features (free checking with direct deposit, ATM fees waived, free money order) are common considerations when choosing a bank. 6061227-288443Key00Key3. What is a credit union and how does it differ from typical banks? A credit union is owned and managed by its members, like Houston Texas Fire Fighters Federal Credit Union or HTFFFCU. Like banks, you can have a checking account, ATM access, and borrow money. The biggest difference is banks are for-profit but credit unions are not-for-profit, meaning any profit made is split among its members through payments called dividends. Credit unions typically offer lower interest rates on loans, have lower fees, and are more lenient on ATM transaction fees (some waive one transaction per week and only charge $1 - $1.50 per transaction). In addition, credit unions do not pay taxes since they are not-for-profit. One downside is in order to join a specific credit union, potential members must be a part of a certain group or be located in a certain location. For example, Chevron Federal Credit Union accepts all employees of Chevron Corp. and other smaller companies owned by Chevron or persons living in some Maryland cities. Elaborate: 15 minutes Study the chart below. Discuss answers with your partner and be ready to defend your answers to the class.1139701397000Bank of America289230-762000117170000CitibankMonthly maintenance fee$10NoneNoneMinimum balance required*$0$500**$5000**Cost of checks$12 per case of 4 booksFreeFreeCost for money orders$0.50 per money orderFreeFreeNonsufficient fund fee (NSF)$30$25$20Cost of debit card$20 per year$10 per yearFreeInterest rate earned per yearNoneNone2% *if the balance falls below the minimum, there is a $25 fee each month**there is no minimum balance requirement if direct deposit is used A. Mrs. Brown wants to open up a bank account for her 16 year old son, Jake, to teach him to be responsible for his own money. She wants to start by depositing the $260 he received for his birthday and she plans to allow him to use a debit card. Jake will start working soon to pay for his own food and gas expenses.If you were Jake, which bank would you use? It is more difficult to maintain higher minimum balance accounts without a large, steady income; therefore Jake would be better off using Bank of America.Pick two items from the chart. Discuss why you think it is important for Jake to pay attention to the items.NSF fee - Jake should consider writing a check only if he has enough money in his bank account because he could lose $30 each time the bank has to cover for the amount he overdrafted.Monthly maintenance fee – if possible, Jake should try to maintain at least $500 in his account so he can use the Capital One account to avoid costly monthly fees that could add up to $120 per year!B. Do you think Citibank would make money from a person using their checking account? Yes, although Citibank is paying 2% for their customers, they could potentially earn much higher rates of return from their own investment ventures (loans, stocks, commodities) 5610860-261772Key00KeyEvaluate: 8 minutes1Which of the following acronyms listed is not correct?AAPR – annual percentage rateBATM – automated-teller machineCPIN – personal identification numberDNSF – national savings fund2Which of the following correctly describes a debit card? Aa plastic payment card used in place of cashBanother name for a credit cardCATM use is always freeDit is a form of a loan3Which of the following is not an important consideration when choosing to open a checking account at a local bank?Athe number of locations nearbyBthe costs of fees such as maintenance, checking, ATM withdrawal, money order, and use of debit cardCspecial services offered such as online statements, electronic billing, and email alertsDthe cost of the bank’s interior4A blank check with its parts labeled is shown below.2171701714001234567001234567Which of the following labels identifies #6?ADescription or purpose of the checkBThe name and address of account holderCThe signature of the account holderDThe person who is receiving the payment5How does a credit union differ from a bank?AMoney kept at a credit union is insured whereas banks do not insure your moneyBCredit unions are not-for-profit institutions that provide similar services like banks but they charge lower fees and offer better interest ratesCBanks charge NSF fees whereas credit unions charge low ATM fees.DYou must know someone or are related to a member in order to join a credit union whereas anyone can open up a bank account provided that they have the minimum amount to deposit.Sample Items46863006413500190516858000469011011049000468630093980003752850182245001905018351500Title: Lesson 2- Checking Account and Debit CardEngage: 2 minutes3304870590551234567001234567Which is the correct label for #7 on the check?24285708763000ADescription of transactionBAmount to be paidCPerson/company to be paidDReason for writing the checkEAccount holder’s signatureExplore: 5-10 minutes Using the checkbook shown below, write out all the checks require in the list of transactions. If you need help, look at the sample diagram A. Include the 1. your name/address, 2. date, 3. check number, 4. the payee, 5. the amount in words and numbers, 6. the purpose or description, and 7. your signature on every check!323850013525500-11430012573000-28575749300015240007493000323850017018000-151130166370Diagram A00Diagram A32289758636000Explain: 15 minutesClass Activity – Select a volunteer to go to the keyboard. . What is a debit card? Does it cost anything to use it? What do you think ATM stands for? What is a PIN?2. What is important to consider when choosing to open a checking account from different local financial institutions (banks and credit unions)?3. What is a credit union and how does it differ from typical banks? Elaborate: 15 minutes Study the chart below. Discuss answers with your partner and be ready to defend your answers to the class.1139701397000Bank of America289230-762000117170000CitibankMonthly maintenance fee$10NoneNoneMinimum balance required*$0$500**$5000**Cost of checks$12 per case of 4 booksFreeFreeCost for money orders$0.50 per money orderFreeFreeNonsufficient fund fee (NSF)$30$25$20Cost of debit card$20 per year$10 per yearFreeInterest rate earned per yearNoneNone2% *if the balance falls below the minimum, there is a $25 fee each month**there is no minimum balance requirement if direct deposit is used A. Mrs. Brown wants to open up a bank account for her 16 year old son, Jake, to teach him to be responsible for his own money. She will start by depositing the $260 he received for his birthday, and she plans to allow him to use a debit card. Jake will start working soon to pay for his own food and gas expenses.If you were Jake, which bank would you use? Why?Pick two items from the chart. Discuss why you think it is important for Jake to pay attention to the items.B. Do you think Citibank would make money from a person using their checking account? Evaluate: 8 minutes1Which of the following acronyms listed is not correct?AAPR – annual percentage rateBATM – automated-teller machineCPIN – personal identification numberDNSF – national savings fund2Which of the following correctly describes a debit card? Aa plastic payment card used in place of cashBanother name for a credit cardCATM use is always freeDit is a form of a loan3Which of the following is not an important consideration when choosing to open a checking account at a local bank?Athe number of locations nearbyBthe costs of fees such as maintenance, checking, ATM withdrawal, money order, and use of debit cardCspecial services offered such as online statements, electronic billing, and email alertsDthe cost of the bank’s interior4A blank check with its parts labeled is shown below.2171701714001234567001234567Which of the following labels identifies #6?ADescription or purpose of the checkBThe name and address of account holderCThe signature of the account holderDThe person who is receiving the payment5How does a credit union differ from a bank?AMoney kept at a credit union is insured whereas banks do not insure your moneyBCredit unions are not-for-profit institutions that provide similar services like banks but they charge lower fees and offer better interest ratesCBanks charge NSF fees whereas credit unions charge low ATM fees.DYou must know someone or are related to a member in order to join a credit union whereas anyone can open up a bank account provided that they have the minimum amount to deposit. ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download