Bank On ItThe Basics

Homework

(Passport page 9)

Why Are We Here?

Money Cycles

Earn Spend Earn

Spend

Earn Spend Borrow Spend

Earn Spend Save

Earn Save

Spend

What Do You Know?

(Pre-Test pages 5-6)

Let’s Talk About

You

How Does it Work?

Deposits

Interest

Interest

Loans

SafetyConvenience

CostSecurity

Financial future

Why Keep Money in an Account?

Check-cashing fees:4 x $5 = $20 a month

Money order fees:5 x $1 = $5 a month

Financial Institution vs. Check-Cashing Fees

Check-Cashing Services

$240 a year$60 a year

Total: $300

Bank or Credit Union

Monthly fee:$5

$60 a year

Box of checks:$18

Total: $78Savings: $222

Financial InstitutionsBank Credit Union

Make loans

Pay checks

Accept deposits

Other financial services

Ownership may be limited

Not for profit

Open to anyone

Insured

Types of Checking Accounts

Free/low cost

Regular

Electronic-only/ ATM

Interest-bearing

Common Services

Direct Deposit

Loan

Wire Transfer

Remittance

ATM

Money Order

Stored ValueCard

Debit Card

Phone/Online Banking

Deposits & WithdrawalsDeposit

–Direct deposit, cash, checks, ATMs

–Check hold ~ you may not have immediate

use of deposited funds Withdrawals

–Debit card, ATM, write checks to “cash”

–Fees

Fee Schedules

MonthlyService

ATM Use

Stop Payment

Per-Check

Overdraft

PhoneInquiry

CheckPrinting

Returned Deposit

Teller

Check Register

Check

Number

Date Description of

Transaction

Payment/Debit

(-)

Deposit/Credit

(+)

Balance

3/20 Opening Deposit 200 00 $200 00

3/22 Deposit 30 00 $230 00

3/23 Deposit 50 00 $280 00

3/23 Withdrawal 25 00 $255 00

105 3/26 Coffee Mart 19 75 $235 25

Activity 1: Making Deposits and Withdrawals

Complete Activity 1 in the

Participant Guide.

1. Read the scenario carefully. 2. Complete the table.3. Determine the new balance.

Checking Account Statement

1. Bank or credit union name/address

2. Statement period

3. Your name/address

4. Account number

5. Transactions

6. Cashed checks

7. Account summary with fees/charges

12

3

4

5

7

6

Reconciling Your Account

Balancing:

Keeping your checkbook register up-to-date and

maintaining totals

Reconciling:

Finding and correcting any differences between the

statement and your register

Your name and address

Check number and codes

Preprinted Information

Financial Institution's nameRouting & Transit Number

Account Number

0105

Complete the CheckDate

Pay to the order of

Amount

Signature

Memo

0105

Barriers & Strategies

1. Keeping track of your money– Bounced check fees

2. Your checking history– ChexSystems– Second chance checking

3. “I didn’t know!”

Temporary Holds

Restaurants Gas Stations

Hotels Phone/OnlinePurchases

Electronic Banking

Automatic Bill Payment

Online Bill Payment

Mobile Banking

New Opt-In Rule

You control what is paid

By default, you are “opted-out”

There could be a fee

You can change your mind

Does not cover checks / auto

payments

Privacy NoticesExplains how your personal financial information is

shared and protected

Under Federal law:

• Personal financial information is private

• You can stop or “opt out”

What Have You Learned?

(Post-Test page 39)

Homework

(Passport page 15)

Questions?