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Building: Knowledge, Security, Confidence
Check It Out!All About Using and Writing Checks
2
What We Will Learn Today
• Today we will learn how to use checks, write checks, and record checks in our check registers.
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Checking Accounts
When you open a checking account at the bank, you can write checks and use a debit card to:
• Pay bills
• Make purchases
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What is a Check?
• A check is a written contract between you and your bank.
• When you write a check, you are asking the bank to take money from your account and give it to someone else.
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Using a Checking Account is Convenient
• Gives you quick and easy access to your money
• Lets you “direct-deposit” payroll and other checks
• Eliminates the need to carry a lot of cash
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Better Money Management
• Keep a record of “transactions”
• Build a positive relationship with your bank
Having a checking account lets you:
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Steps to Writing a Check
Make sure you have
enough money in your
account!
1. Write the check
2. Record the transaction
in your check register
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Your Checkbook
Contains:
• Checks
• A Check Register
• Deposit slips
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How To Write A Check
http://www.moneyinstructor.com/in/
inwritecheck.asp
http://www.moneyinstructor.com/in/
inwritecheck.asp
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Sample Check
1 38
64 5
10 9
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1: Today’s date2. Payee3. Amount in numbers4. Amount in words5. Reminder6. Your signature7. Your name & address8. Check #9. Name of your bank10. Your checking account number
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Sample Checks
2/26/20XX
Best Tees 19.75Nineteen and 75/100
Your signatureshirt
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Activity: Writing A Check
Complete Activity
– Follow directions to complete this activity
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You can also use a check to get cash out of your checking account. • Write “CASH” or your name in the “Pay to the Order of” area on your check. • But, be careful! A check you write out to cash can easily be cashed by anyone!
Checks Made Out to “Cash”
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Endorsing a Check
DO NOT WRITE, STAMP OR SIGN BELOW THIS LINERESERVED FOR FINANCIAL INSTITUTION USE *
ENDORSE HERE
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Check Writing Tips
Write in blue or black ink. Write clearly. Remember to record each check you write in your check register.
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What if you make a mistake?
If you make a small mistake when writing a check, cross out the incorrect information, write your initials above it, and then write the correct information.
If you make a big mistake when writing a check, write “VOID” across the entire check, rip it up, or shred it, and throw it away. Write a new check.
Remember to entire all checks – even VOIDED checks – in your check register.
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Your Check Register
Use your check register to keep
an accurate record of all your
checking account transactions
including:– Checks & ATM transactions– Interest – Other bank charges
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http://www.moneyinstructor.com/in/
incheckbook.asp
How to Use a Check Register
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Let’s Practice Using a Check Register
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Words to Remember
Payee: The party that receives the check.
Payor: The party that writes the check (to the payee).
Check Register: A booklet that is used to keep a record of all your checking related transactions, including checks written and deposits.
Endorse a Check: When the payee signs their name on the back of a check to cash or deposit the check.
Balance: The amount of money currently in your checking account.
Overdraft or Non-sufficient Funds: When you write a check for
more money than you have in your account.
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Checking Account Statement
• Checks you wrote
• Withdrawals and deposits
• Debit card purchases
• Bank fees
Each month your bank will send you an account statement:
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“Reconciling” Your Account
Banks can make mistakes!
You should reconcile your check register with
your monthly checking account statement each
and every month to make sure your
balance is correct.
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“Bad” or NSF Check
• A check you write when there isn’t enough money in your checking account to cover it
• Also called a “bounced check”
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Consequences of Writing Bad Checks
• Bad check fees
• Bank closes your account
• Merchants may not accept your checks
• Your credit will be impacted
• Maybe jail!
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Check It Out!
• The benefits of using a checking account• How to write a check• How to use a check register• Why you should not write a “bad” check
Congratulations! Today we have learned:
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Thank you!Thank you!
American Debt Counseling, Inc.American Debt Counseling, Inc.1 888 DEBT USA1 888 DEBT USA
www.americandebtcounseling.orgwww.americandebtcounseling.org