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Money & Banking
What is a Checking Account?
A checking account gives you a way to:
1. manage
2. store
3. spendyour money
•A Check gives you proof you paid someone.•It’s a bad idea to send cash in the mail – you have no proof•Many banks will charge you to cash a check if you don’t have an account with them•Some banks charge fees for checking, look for banks that don’t
You can use Checks instead of cash to pay bills.a
You can also use debit cards(Check cards)a
or ATM to access your cash
A check is a promise to pay
Jaycee writes a check to pay Jacob what she owes him for fixing her car.
Jacob, takes the check to his bank, and they give him money. (Good Money Bank)
Good Money Bank sends the check to First Kids bank (Jaycee’s bank) and asks for to be paid back.
Kid’s bank takes the money out of Jaycee’s account and sends it to Jacob’s bank.
How to write a check
Jaycee Kircher 1101
Arkansaw, WI 547 20
Pay to the order of $
DOLLARS
Kids Bank $$$
MEMO
091808347 545 529 1101
April 25
2013
Jacob Gullickson
20 00
Twenty and 00/100 -----------------------------------
Car repairs
Jaycee Kircher
Number Date Transaction Withdrawal ü Deposit
$ 100.00
1101 4/26/13 Jacob Gullickson 2000
Number Date Transaction Withdrawal ü Deposit $ 100.00
1101 4/25/13 Jacob Gullickson 2000 80.00
car repairs
Number Date Transaction Withdrawal ü Deposit $ 100.00
1101 4/25/13 Jacob Gullickson 2000 80.00
car repairs
4/27/13 Paycheck 50000
Number Date Transaction Withdrawal ü Deposit $ 100.00
1101 4/25/13 Jacob Gullickson 2000 80.00
car repairs
4/27/13 Paycheck 50000 580.00
Number Date Transaction Withdrawal ü Deposit $ 100.00
1101 4/1/13 Jacob Gullickson 2000 80.00
car repairs
4/27/13 Paycheck 50000 580.00
Bank 4/28/13 Ford Motor Credit 20000
car loan
Number Date Transaction Withdrawal ü Deposit $ 100.00
1101 4/26/13 Jacob Gullickson 2000 80.00
car repairs
4/27/13 Paycheck 50000 580.00
Bank 4/28/13 Ford Motor Credit 20000 380.00
car loan
1102 4/28/13 EconoFoods 8000 300.00
groceries
CkCd 4/29/13 Carmike Cinemas 5000 250.00
movies
What is a Debit Card?
What else is a Debit Card? It can also be known as an ATM card
ATM stands for Automatic Teller Machine (like visiting the bank, but instead of a person (teller) there is a machine working for you.At an ATM you can get cash from your checking account – it is subtracted just like a check.
Sometimes if you use an ATM that doesn’t belong to your bank – the other bank will charge you a fee to use the machine.
Number Date Transaction Withdrawal ü Deposit $ 100.00
1101 4/26/13 Jacob Gullickson 2000 80.00
car repairs
4/27/13 Paycheck 50000 580.00
Bank 4/28/13 Ford Motor Credit 20000 380.00
car loan
1102 4/28/13 EconoFoods 8000 300.00
groceries
CkCd 4/29/13 Carmike Cinemas 5000 250.00
movies
1103 4/30/13 Xcel Energy 10000 150.00
electric bill
Kids Bank $$$Durand, WI 54736
Jaycee Kircher
Arkansaw, WI 54721
Account # 1234
Previous Balance $ 100.00
1 Deposit/Credit 500.00
4 Checks/Debits 350.00
Ending Balance $ 250.00
Deposits & Additions
4/27 Regular Deposit 500.00
Checks & Withdrawals
4/28 Ford Motor Credit 200.00
4/29 Carmike Cinemas 50.00
Checks in Serial Order #
4/27 1101 20.00
4/30 1102 80.00
Balance per bank Statement $
minus outstanding checks
# $______
#_____ $______
#_____ $______
total $______ - $______
plus outstanding deposits
Date Amount
______ ______
______ ______
total $ +
balance on check register $
250.00
1103 100.00
100.00 100.00
150.00
Like What????
Setting Aside money for future Occurrences
What is Savings?
What do you do with Savings?
Something you WANT Things you don’t Expect
How do you Save?
Extra jobs Gifts A plan to save A Budget
Where does the money to save come from?
What is Interest?
You put $100 in a savings account, the bank pays you interest for every day they hold your money.
They pay interest of 3.65%
Then the bank loans, that $100 to a different customer at a higher rate.
$100.00 3.65% 1¢/day $3.65/year
$100.00 10.95% 3¢/day $10.95/year
$10.95- $3.65 = $7.30 the money the bank makes
Think Bigger!
$20,000 3.65% $ 730.00 /year
$20,000 10.95% $ 2,190.00 /year
Presentation created by Laura Gullickson, CPADurand, WI
