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Checking Account Simulation. Understanding Checking Accounts. What is a Checking Account?. Tool used to transfer funds deposited into the account to make a cash purchase Could also be named a transaction account Common financial service used by many consumers Available at banks. - PowerPoint PPT Presentation
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Checking Account Simulation
Understanding Checking Accounts
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account SimulationFunded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman
1.7.1.G1What is a Checking
Account? Tool used to transfer funds deposited
into the account to make a cash purchase
Could also be named a transaction account
Common financial service used by many consumers
Available at banks
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account SimulationFunded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman
1.7.1.G1Checking Accounts
continued Services and fees will vary depending
upon the financial institution Research the financial institution and
type of account before choosing Many financial institutions offer
telephone and internet banking services to customers
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account SimulationFunded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman
1.7.1.G1
Benefits Can help to manage money Written record of expenses
Check register Makes bill paying more convenient Reduces the need to carry large
amounts of cash Most liquid of cash management tools
Considered cash
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account SimulationFunded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman
1.7.1.G1
How Do They Work? Money is deposited into the account
with a deposit slip
Pay the transaction by: Writing a check Using an ATM and/or debit card Using electronic banking
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account SimulationFunded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman
1.7.1.G1
Characteristics Funds are easily accessible through:
A check Automated teller machine (ATM) Debit card Telephone Internet
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account SimulationFunded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman
1.7.1.G1
What is a Check?
Piece of paper pre-printed with the account holder’s: Name Address Financial institution Identification numbers
To completed check, fill in the: Amount Payee
To whom the check was written
Date Signature
Used at the time of purchase as the form of payment
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account SimulationFunded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman
1.7.1.G1
Bouncing a Check Check written for an amount over the
current balance held in the account ‘Bounces’ due to insufficient funds
Assessed a substantial fee by both the financial institution and the payee
Can cause harm to credit report Financial institutions report to credit
bureaus the account holder’s failure/success to manage his/her checking account properly
Used as a guide for future inquiries for credit
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account SimulationFunded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman
1.7.1.G1Other Checking
Components Register
Place to immediately record all monetary transactions for a checking account
Written checks, ATM withdrawals, debit card purchases, deposits, fees, etc.
Checkbook Contains the checks and the register to
track monetary transactions
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account SimulationFunded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman
1.7.1.G1
ATM Fees ATMs are owned by different financial
institutions Fees may be charged to the account
for ATM use Fees range from $0.50 to $5.00
Usually free to account holders of the financial institution
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account SimulationFunded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman
1.7.1.G1
ATM Card Card given to account holder to make
financial transactions at ATMs In the shape of a credit card, but can
only be used in designated places Must use personal identification
number (PIN) to access the account A protected number given or chosen by
the account holder to allow access to the account
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account SimulationFunded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman
1.7.1.G1Types of Accounts
Available Financial institutions offer different
types of checking accounts All have own characteristics Research all of the requirements and
restrictions before opening the account Basic types/guidelines include:
Regular checking Free checking Special checking Interest-Earning checking
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account SimulationFunded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman
1.7.1.G1
Regular Checking No monthly charge if minimum
balance is maintained No interest is given Unlimited check writing
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account SimulationFunded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman
1.7.1.G1
Free Checking No charges or fees for using the
account No minimum balance required Unlimited check writing Usually for a specific group:
Students Seniors
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account SimulationFunded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman
1.7.1.G1
Special Checking Generally for people who write only a
few checks and keep a low balance Basic account which pays no interest Monthly service charge or fee for
each transaction May have restrictions on number of
transactions each month
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account SimulationFunded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman
1.7.1.G1Interest-Earning
Checking Pays interest on money in account
Usually the lowest interest rate of all the cash management tools
Minimum balance required Unlimited check writing Called a share draft at credit unions
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account SimulationFunded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman
1.7.1.G1Opening a Checking
Account Most applications are completed on a
computer to process quickly Customer may have to complete a brief
hand-written application to be entered into the computer by new accounts personnel
Customer must have: Picture identification Name, address, phone number, and social
security number
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account SimulationFunded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman
1.7.1.G1
Opening continued If customer is approved, he/she
completes a signature card Contains account information about the
new account and his/her signature Used to verify the signature for each
signed transaction for the account to prevent fraud
Completion of the signature card means the customer agrees to all terms and conditions of the account
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account SimulationFunded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman
1.7.1.G1
Signature Card example
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account SimulationFunded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman
1.7.1.G1
Opening continued If offered, customers may choose to
have an ATM and/or debit card for the account May be required to complete another form
An initial deposit must be made Amount will vary among different financial
institutions and type of account
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account SimulationFunded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman
1.7.1.G1
Ordering Checks New customers are provided starter
checks to use until the ordered checks arrive Generic checks with account number and
financial institution pre-printed Customer information is hand written
Many businesses do not accept starter checks Take this into consideration before making the
initial deposit Ordered checks may take 5 to 10 business days
to arrive
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account SimulationFunded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman
1.7.1.G1
Ordering continued Personal information on checks
Name Address Optional: phone number, driver’s license
number DO NOT put the account holder’s social
security number on the check for security reasons
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account SimulationFunded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman
1.7.1.G1
Ordering continued Design of the check is customer’s
choice Customer pays for checks
Price depends on the style Style of the check does not change how a
check works Some financial institutions may offer basic
checks free of charge Single or duplicate checks are available
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account SimulationFunded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman
1.7.1.G1
Ordering continued
No records of written checks
Each check must be logged in the register immediately to track transactions
Provides a written record of each check with the carbon copy
Convenient in case the check was not recorded into register immediately
Single Duplicate (carbon copy)
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account SimulationFunded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman
1.7.1.G1
Endorsing a Check Endorsement
Signature on the back of the check from receiving person approving it for deposit
A check must be endorsed to be deposited Three types
Blank Restrictive Special
Safest way to endorse the check is to wait until going to the financial institution to deposit or cash the check
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account SimulationFunded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman
1.7.1.G1
Blank Endorsement
Receiver of the check signs his/her name
Anyone can cash or deposit the check after has been signed
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account SimulationFunded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman
1.7.1.G1
Restrictive Endorsement
More secure than blank endorsement
Receiver writes “for deposit only” above his/her signature Allows the check to
only be deposited
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account SimulationFunded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman
1.7.1.G1
Special Endorsement
Receiver signs and writes “pay to the order of (fill in person’s name)”
Allows the check to be transferred to a second party Also known as a
two-party check
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account SimulationFunded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman
1.7.1.G1
Making a Deposit Deposit slip
Contains the account holder’s account number and allows money (cash or check) to be deposited into the correct account
Located in the back of the checkbook Complete a deposit slip to make a deposit
Give to financial institution along with cash and/or check
Checks must be endorsed to be deposited Deposited amount must be recorded in the
check register to keep the balance current
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account SimulationFunded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman
1.7.1.G1Completing a Deposit
Slip
Date The date the deposit is being made
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account SimulationFunded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman
1.7.1.G1Completing a Deposit
Slip
Signature Line Sign this line to receive cash back
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account SimulationFunded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman
1.7.1.G1Completing a Deposit
Slip
Cash The total amount of cash being deposited
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account SimulationFunded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman
1.7.1.G1Completing a Deposit
Slip
Checks List each check individually
Identify each check on the deposit slip by abbreviating the name of the check writer
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account SimulationFunded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman
1.7.1.G1Completing a Deposit
Slip
Checks If more checks are being
deposited than number of spaces on the front, use the back
List each check Add the total, enter it on
the front
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account SimulationFunded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman
1.7.1.G1Completing a Deposit
Slip
Total from Other Side The total amount from all checks listed on
the back
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account SimulationFunded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman
1.7.1.G1Completing a Deposit
Slip
Subtotal The total amount of cash and checks
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account SimulationFunded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman
1.7.1.G1Completing a Deposit
Slip
Less Cash Received The amount of cash back being received This amount is not deposited into account
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account SimulationFunded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman
1.7.1.G1Completing a Deposit
Slip
Net Deposit The amount being deposited into the account To calculate the amount, subtract the cash received
from the subtotal
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account SimulationFunded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman
1.7.1.G1
Writing a Check To pay for items using a checking
account A check is given as a form of payment Must be completed and given to the
person or business Pre-printed items on a check
Name and address of account holder Name and address of financial institution Check number Identification numbers (account, routing)
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account SimulationFunded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman
1.7.1.G1
Writing a Check
Personal Information Account holder’s name and address May include a phone number, not required DO NOT list a social security number for safety reasons
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account SimulationFunded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman
1.7.1.G1
Writing a Check
Check Number Numbers used to identify checks Printed chronologically
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account SimulationFunded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman
1.7.1.G1
Writing a Check
Date The date the check is written
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account SimulationFunded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman
1.7.1.G1
Writing a Check
Pay to the Order of The name of the person or business to
whom the check is being written
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account SimulationFunded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman
1.7.1.G1
Writing a Check
Amount of the Check in Numerals The amount of the check written numerically in the box Write the cents smaller and underline Write the numbers directly next the dollar sign to prevent
someone else from adding numbers to change the amount
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account SimulationFunded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman
1.7.1.G1
Writing a Check
Amount of the Check in Words The amount of the check written in words on the second line Start at the far left of the line, write the amount in words,
followed by ‘and’, and the amount of cents over 100; draw a line from the end of the words to the word ‘dollars’
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account SimulationFunded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman
1.7.1.G1
Writing a Check
Memo Space used to identify the reason for writing a check;
optional Good place to write information requested by a company
when paying a bill, generally the account number
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account SimulationFunded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman
1.7.1.G1
Writing a Check
Signature The account holder’s signature agreeing to the
transaction
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account SimulationFunded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman
1.7.1.G1
Writing a Check
Identification Numbers First - routing numbers to identify the account’s financial
institution Second - account number Third - check number
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account SimulationFunded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman
1.7.1.G1
Check 21 Check Clearing for the 21st Century
Act (Check 21) Current trend that changes how money is
withdrawn from customers account and deposited into businesses account
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account SimulationFunded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman
1.7.1.G1
How Check 21 Works Prior to Check 21
Paper checks physically moved from customer to business to various banks and the transfer of money from customer’s bank to business’ bank took days
After Check 21 Paper checks are scanned into a computer
system at the place of business and immediately returned to the customer. This electronic copy of the check is called a substitute check. The substitute check is then transferred electronically to various banks and the transfer of money customer’s bank to business’ bank takes hours
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account SimulationFunded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman
1.7.1.G1
Check Register Place to immediately record all
monetary transactions for a checking account
Written checks, ATM withdrawals, debit card purchases, deposits, fees, etc.
Used to keep a running balance of the account
Remember - Record every transaction!
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account SimulationFunded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman
1.7.1.G1
Check Register
Date The date the check was written or
transaction was made
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account SimulationFunded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman
1.7.1.G1
Check Register
Number The number of the written check; if a debit
card or ATM was used, write DC or ATM
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account SimulationFunded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman
1.7.1.G1
Check Register
Description of Transaction The person/business the check was written to or
where the debit card was used Gray line can be used to write the memo
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account SimulationFunded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman
1.7.1.G1
Check Register
Payment/Debit(-) Amount of the transaction Deducted from the balance
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account SimulationFunded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman
1.7.1.G1
Check Register
Deposit/Credit(+) Amount of the transaction Added to the balance
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account SimulationFunded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman
1.7.1.G1
Check Register
√ T A box used to track whether the check has cleared
on the monthly bank statement when reconciling at the end of each month
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account SimulationFunded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman
1.7.1.G1
Check Register
Fee (if any) Any extra fees charged to the account Listed on the bank statement
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account SimulationFunded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman
1.7.1.G1
Check Register
Balance The running total of the checking account Calculated by adding or subtracting each transaction Keep this updated
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account SimulationFunded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman
1.7.1.G1
Monthly Statement Lists each monetary transaction and the
current account balance for a specified time period
Includes: Dates Identification for each transaction (number
or type, date, amount) Transaction amounts for withdrawals and/or
deposits Interest earned (if applicable) Fees or charges (if applicable)
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account SimulationFunded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman
1.7.1.G1Monthly Statement
continued If customer holds more than one
account at the same financial institution May receive one statement
for both For example: a checking
and a savings account May be mailed separately
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account SimulationFunded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman
1.7.1.G1Reconciling a Checking
Account Reconcile
Balance the checkbook register each month to the balance shown on the statement
Do this every month to ensure the correct balance in the checkbook Knowing the correct balance can help to
avoid bouncing checks
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account SimulationFunded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman
1.7.1.G1
Steps for Reconciling Make sure every transaction listed on the
statement matches the check register Place a check next to each item once it has
been double-checked between the statement and register Do this for both withdrawals and deposits
Identify any outstanding transactions in the check register Items which have not cleared through the
financial institution and are not listed on the statement
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account SimulationFunded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman
1.7.1.G1Steps for Reconciling
continued Start with checking account balance
on the statement Add any outstanding deposits Subtract any outstanding withdrawals Compare this result with the current
balance in the check register They should be the same
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account SimulationFunded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman
1.7.1.G1
Reconciling Example Statement balance
$204.00 Add $154.01+
Outstanding deposits 8/30 - $154.01
Subtract $44.75- Outstanding withdrawals
#299 - $19.75 #300 - $25.00
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account SimulationFunded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman
1.7.1.G1Reconciling Example
continued Total $313.26
Remember - this figure should be the same as the check register
If not, double-check the math, look for mistakes Make sure all service fees and charges
have been added to the check register
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account SimulationFunded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman
1.7.1.G1
Checking Account Safety If a checkbook, ATM, and/or debit
card becomes lost or stolen Immediately report it to the financial
institution File a report with the police
Reported lost/stolen checkbook: Financial institutions generally do not
hold the account holder liable for any fraudulent charges
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account SimulationFunded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman
1.7.1.G1
Safety continued Reported lost/stolen ATM/debit card:
Within 2 business days Cardholder is only liable for $50.00
Longer than 2 business days Could be liable for up to $500.00
Varies depending upon the financial institution
May not charge the account holder anything if the correct steps were taken to report the lost/stolen card
© Family Economics & Financial Education – Revised October 2004 – Financial Institutions Unit – Checking Account SimulationFunded by a grant from Take Charge America, Inc. to the Department of Health and Human Development at Montana State University – Bozeman
1.7.1.G1
ConclusionResearch before choosing a financial
institution and checking account!
Follow the precautions to prevent checking account fraud!
Report a lost/stolen checkbook, ATM, and/or debit card immediately!