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EL CIVICS BANKING
CASAS Civic Objective #1
Identify, evaluate, and compare financial service options in the community such as banks, credit unions, checkcashing
services and credit cards.
STUDENT’S WORKBOOK
NOCCCD SCE/ESL Program
1830 W. Romneya Drive Anaheim, CA 92801
By: Janet Cagley
Harinder Kahlon
FALL 2007
SECTION 1: BANKING – EL CIVICS OBJECTIVE #1
BANKING BASICS
5
BANKING TERMS:
Let’s get familiar with the world of banking
6
Vocabulary Words and Definitions – You will see the following words throughout the objective. Use the lines after each word to rewrite the definitions in your own words; then share with the class.
Balance The amount of money in an account, equal to the net of credits and debits at that point in time for that account. also called account balance. _________________________________________________________________
_________________________________________________________________
Bills – Paper money _________________________________________________________________
_________________________________________________________________
Borrow – To receive money on loan with the understanding that it will be repaid, usually with interest. _________________________________________________________________
_________________________________________________________________
Cash Currency and coins on hand _________________________________________________________________
_________________________________________________________________
Change – Coins such as pennies, nickels, dimes, quarters, or halfdollars _________________________________________________________________
_________________________________________________________________
Check A negotiable instrument drawn against deposited funds, to pay a specified amount of money to a specific person upon demand _________________________________________________________________
_________________________________________________________________
Checking Account An account which allows the holder to write checks against deposited funds _________________________________________________________________
_________________________________________________________________
Check Register An informal record of all deposits to and withdrawals from a given checking account. A checkbook register is used to perform bank reconciliation _________________________________________________________________
_________________________________________________________________
Coins – Pennies, nickels, dimes, quarters, halfdollars, or silver dollars _________________________________________________________________
_________________________________________________________________ 7
Deposit Money transferred into a customer's account at a financial institution. _________________________________________________________________
_________________________________________________________________
Deposit Slip A written notification accompanying a bank deposit, which specifies and categorizes the funds (such as checks, bills and coins) being deposited. _________________________________________________________________
_________________________________________________________________
Endorse/ Endorsement A signature used to legally transfer a negotiable instrument, such
as check
_________________________________________________________________
_________________________________________________________________
Interest The return earned on an investment. _________________________________________________________________
_________________________________________________________________
Joint Account Any account owned by two or more people _________________________________________________________________
_________________________________________________________________
Money Order Financial instrument, issued by a bank or other institution, allowing the
individual named on the order to receive a specified amount of cash on demand. Often used
by people who do not have checking accounts.
_________________________________________________________________
_________________________________________________________________
Monthly statement A report sent by a bank to each of its customers, providing details on
the previous month's transactions, dividends and interest, and the current account balance.
_________________________________________________________________
_________________________________________________________________
Overdraft The amount by which withdrawals exceed deposits, or the extension of credit by a lending institution to allow for such a situation. _________________________________________________________________
_________________________________________________________________
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Personalized Check – A check that is preprinted with your personal information _________________________________________________________________
_________________________________________________________________
Savings Account A deposit account at a bank or savings and loan which pays interest, but cannot be withdrawn by check writing. _________________________________________________________________
_________________________________________________________________
Savings bond A registered, noncallable, nontransferable bond issued by the U.S. Government, and backed by its full faith and credit. _________________________________________________________________
_________________________________________________________________
Service Charge A fee charged for services rendered. _________________________________________________________________
_________________________________________________________________
Traveler’s check Check issued by a financial institution which functions as cash but is protected against loss or theft. _________________________________________________________________
_________________________________________________________________
Withdraw A removal of funds from an account.
_________________________________________________________________
_________________________________________________________________
Withdrawal Slip A written notification accompanying a bank withdrawal which specifies the amount being withdrawn. _________________________________________________________________
_________________________________________________________________
9
Introduction to Banking
In the past, when people wanted to save their money, they sometimes put it in a box and hid it under the bed or put it in a book. They thought the money was safe and nobody could find it. But times have changed, and now people have a better and safer place to keep their money. Now, many people take their money to a bank or a credit union. Keeping money in a bank or credit union is not only safe but also more convenient.
Discuss with your classmates:
1. Do you have a Bank account in the U.S.?
2. Did you have a Bank account in your country?
3. Do you remember the name of the Bank in your country?
4. Can you name a Bank in your neighborhood?
10
What is a Financial Institution? There are three types of financial institutions: Banks, Credit Unions, and Savings Institutions.
Bank A financial institution that is controlled by federal and state laws and regulations. Banks make loans, pay checks, accept deposits, and provide other financial services. Most banks are insured by the Federal Deposit Insurance Corporation or (FDIC). The FDIC insures a person’s money up to $100,000.
Credit Union A nonprofit financial institution owned by people who have something in common, for example, working in the same industry. You have to become a member of a credit union to keep your money there. Most credit unions are insured but the National Credit Union Administration (NCUA).
Savings Institution A savings bank or savings and loan association is similar to a bank. These companies were created to promote homeownership and must have a majority of their assets in housingrelated loans. Although many banks also make home loans, a savings institution’s main business is to make home loans.
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What are some reasons people use banks and credit unions? • Banks and credit unions offer services to help you save and manage your
money. o A Savings Account is an account where you can deposit your
money and it will be safe. The bank pays you money, called Interest, when you save your money in one of their accounts.
o A Checking Account is an account where you can deposit your money when you will need to spend it soon. You can pay your bills with checks. The bank or credit union will take money from your account when they receive your check from a business or company.
o An Automated Teller Machine (ATM) lets you deposit or withdraw money from your savings or checking account at any time.
o An ATM/Debit Card is used to deposit or withdraw money from an ATM. It can also be used to pay at many stores or restaurants. § A PIN is necessary to use most ATM/Debit Cards. § A PIN is a Personal Identification Number. It is a special code
that identifies you as the owner of the card or account. o Loans are amounts of money that are provided by the bank or credit
union. This money is paid back over a period of time with interest. o Money Orders and Traveler’s Checks are
provided by banks and credit unions for a small fee or in some cases, for free, if you have an account.
o CheckCashing is provided as a free service if you have an account at a bank or credit union. Checkcashing businesses may charge 10% of the check or more.
12
Banking Services.
What can a Bank do for you?
Most banks offer these services to their customers or members. What services does your bank or credit union offer?
Checking Accounts Passbook Loans Savings Accounts Home Equity Loans Retirement Plans. Home Improvement Loans Money Market Accounts Home Mortgages. Term Deposit Accounts Construction Loans Direct Deposits. Bank online. Safe Deposit Account Notary Public Services New Car Loans Payroll Services Student Help Loans Travelers Checks All Purpose Loans 24 Hour Banking VISA Card Statements
13
Who will help me when I go to the bank?
Customer Service
Representative
Teller Loan Officer Store Manager
Helps you open your accounts
Accepts money for deposits
Reviews applications for loans
Makes sure that you get the help you need from the bank staff.
Explains services Cashes checks Answers questions about loans
Answers general questions
Answers questions
Provides written information explaining loan products
Provides written information explaining the bank’s products and services
Refers you to other people at the bank who can help you
Helps you fill out a loan application
Introduces you to others at the bank who can help you
What questions should I ask the customer service representative when I open an account? • Is there a minimum balance to open an account? • Am I required to keep a minimum balance in my account after I open it? • Are there any monthly service charges for my account? • How much will it cost to order personalized checks? • Is there a service charge each time I write a check? • What fees will I be charged if my checking account becomes overdrawn? • How much interest will my savings account earn? • Is my savings account connected to my checking account?
14
Choosing the Right Bank. There are many different banks. Not all are the same. They may differ in the services that they offer, or the interest that they pay. Look for some of these things when choosing a bank:
Choose a bank that pays a higher interest. Choose a bank that charges less for services. Choose a bank that is open on Saturdays. Choose a bank that is near your home or your job.
After you have compared and chosen a bank, you need to go inside and open an account. Here are some things that are important to know before you open an account.
Choosing A Checking Account A checking account is the most common type of banking account. Typical examples include:
The Minimum Balance Account The Regular Account The Special Account The Free Account.
Minimum Balance Account
Do you write a lot of checks? YES/NO
Do you have some extra money? YES/NO
If you answered YES to the above questions, then the minimum balance account may be good for you, but you need to remember to keep a certain amount of money in the account. This money is called the minimum balance. If you don’t have that certain amount in your account at all times, then your bank may charge you a fee.
Regular Checking Account
If you are unable to keep a minimum balance in your account then the regular checking account may be for you. It charges a monthly service fee, and the less money you have in the account, the more the service fee.
Special Checking Account
If you can’t keep a minimum balance in your account and you write a lot of checks, this may be the account for you. You can keep as much or as little money as you like in your special checking account, but each time you write a check you will have to pay a service charge.
Free Checking Account
With free checking you can keep any balance in your account, and write an unlimited number of checks
15
BL to Advanced:
A. Today is a busy day at the World Savings Bank. Look at the picture carefully and choose True or False.
1. There are two bank tellers working now. True / False. 2. Lea is putting her jewelry in the safedeposit box. True / False. 3. Al is in the bank to deposit money into his account. True / False. 4. Ann is the drivethru teller. True / False. 5. Marie is a bank officer. True / False. 6. Ali is a bank customer. True / False. 7. The 5 year CD rate is 1.2% today. True / False.
B. Look at the picture and fill in the blanks
1. Al is filling out a __________. 2. To take money out of the bank is called_________________________. 3. I can keep track of all my money by writing _____________________. 4. The 10 year CD rate is ____________ today. 5. You can withdraw cash from the _______ which is just outside the front door.
16
IL to Advanced
Directions: Use the picture and statements from the previous page to write one or two paragraphs describing some of the events and activities that are taking place in the World Savings Bank.
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
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______________________________________________________________________ 17
Types of Accounts and Services
Directions: choose the kind of account and services that might be appropriate for you – in groups or as a class, discuss their advantages and disadvantages.
Checking Account – You put your money in this kind of account because you will need to spend it soon; for example, to pay your bills with checks or to withdraw cash for everyday spending. The bank will take the money from your account when they receive your check from whom you wrote it to.
Savings Account – In this kind of account you put money that you are not going to need right away, and you want to save it for later. The bank pays you interest for keeping it in one of their accounts.
Loans – Banks and credit unions can loan you money. You can pay back the loan a little at a time. They charge you interest for the loan.
ATM (Automated Teller Machine) – An ATM can be used for 4 things; withdraw money, deposit money, transfer money, or to check your balance. ATM’s are open 24 hours a day. You need a special card and a personal identification number from your bank to use the ATM.
Money Orders and Traveler’s Checks – Money orders and Traveler’s checks can be used when you do not want to use cash or regular checks. They may be free if you have an account with the bank.
Check Cashing – A paycheck or any other check can be cashed. This service is free at your bank or credit union. Other check cashing businesses may charge you a high fee, sometimes as high as 10% of your check.
A Safe Deposit Box – It is a long, metal box that is kept safely in the bank’s vault. You can put your important papers, jewelry, and other valuable items in the box, so they cannot be misplaced, stolen, or damaged in a fire or an earthquake.
18
Directions: Now that you are familiar with many banking terms, you can complete the exercise by writing the letter of the definition on the blank next to the correct word.
1. Balance _______
2. Bills _______
3. Borrow _______
4. Cash _______
5. Change _______
6. Check _______
7. Checking Account ______
8. Check Register _______
9. Coins _______
10. Deposit _______
11. Deposit Slip _______
12. Endorse/
Endorsement _______
13. Interest _______
14. Joint Account _______
15. Money Order _______
16. Monthly statement ______
17. Overdraft _______
18. Personalized
Check _______
19. Savings Account _______
20. Savings bond _______
21. Service Charge _______
22. Traveler’s check _______
23. Withdraw _______
24. Withdrawal Slip _______
A. A. A report providing details on the previous month's transactions.
B. Paper money C. Coins such as pennies, nickels, dimes, quarters, or
halfdollars D. A negotiable instrument drawn against deposited
funds, to pay a specified amount of money to a specific person upon demand
E. Currency and coins on hand F. The amount of money in an account, equal to the net
of credits and debits at that point in time for that account. Also called account balance.
G. An account which allows the holder to write checks against deposited funds
H. An informal record of all deposits to and withdrawals from a given checking account.
I. To receive money on loan with the understanding that it will be repaid, usually with interest.
J. A written notification accompanying a bank deposit, K. A signature used to legally transfer a negotiable
instrument, such as check L. Pennies, nickels, dimes, quarters, halfdollars M. The return earned on an investment. N. A deposit account at a bank or savings and loan
which pays interest, but cannot be withdrawn by check writing
O. Money transferred into a customer's account P. Any account owned by two or more people Q. The amount by which withdrawals exceed deposits R. A removal of funds from an account. S. A check that is preprinted with your personal
information T. A registered, noncallable, nontransferable bond
issued by the U.S. Government, and backed by its full faith and credit.
U. A written notification accompanying a bank withdrawal, which specifies the amount being withdrawn.
V. Check issued by a financial institution which functions as cash but is protected against loss or theft.
W. Often used by people who don’t have checking accounts.
X. A fee charged for services rendered
19
21
Banking Puzzle BL to Advanced
U K X B Q W W M P P E C P W Y
C A S H M L S K H Q C Q N V U
C R E T S I G E R W N S U F E
D E P O S I T M I G A N H U D
V Z N E W J K T T Y L I N K M
J Y M C N T H C E Y A O A Y Y
S L L I B D S N E G B C C Z S
G D D Z R C O E C H A N G E A
N U H A N M T R R F C M B A V
G T W A L N R G S E G Q J S I
K A N X U O M K J E T F S P N
L G K O M W K J S C G N M L G
E S C X D Y E X G R B I I A S
I C J X Y F F V A N E L V W E
A P N N V Z M T C K V F U S B
ACCOUNT CASH COINS
INTEREST SAVINGS
BALANCE CHANGE DEPOSIT MONEY
WITHDRAWAL
BILLS CHECK
ENDORSE REGISTER
BANKING CROSSWORD PUZZLE ILAdvanced
23
1
2 3
4
5 6 7
8
9
10 11
12 13 14
15 16
17
18
19
20 22
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ACROSS: 2. A check that is preprinted with your personal information. 6. A signature used to legally transfer a negotiable instrument, such as a check 10. Coins such as pennies, nickels, dimes, quarters 12. A deposit account at a bank which pays interest but doesn’t allow check writing 13. Currency and coins on hand 15. An account which allows the holder to write checks against deposited funds 16. Pennies, nickels, dimes, quarters, halfdollars, or silver dollars 17. A registered, noncallable , nontransferable bond issued by U.S. Government 18. The amount of money in an account equal to the net of credits and debits at that point in
time for that account also called account balance 20. An account owned by two or more people 22. The amount by which withdrawals exceed deposits, or an extension of credit by a lending
institution to allow for such a situation 23. A written notification accompanying a bank deposit which specifies and categorizes the
funds, (such as checks, bills, and coins) being deposited Down: 1. Money transferred into a customer’s account at a financial institution 3. The return on an investment 4. To receive money on loan with the understanding it will be repaid, usually with interest 5. Check issued by a financial institution which functions as cash but is protected against
loss or theft 7. A report sent by a bank to each of its customers, providing details on the previous
months transactions, dividends, and interest, and the current balance 8. Financial instrument issued by a bank or other institution, allowing the individual named on the order to receive a specified amount of cash on demand
9. A fee charged for services rendered 11. Paper money 14. To remove funds from an account 19. Slipwritten notification accompanying a bank withdrawal specifying withdraw amount
25
Across IL to ADVANCED 1 A bank account you use to pay everyday expenses.
4 A bank employee.
5 Income before you pay taxes.
7 Take money out of the bank.
8 Borrowed money that you pay back at a regular interval.
10 Every month. 11 Put money in the bank.
12 Money borrowed on a credit card. (11)
15 An interest rate that changes with time.
17 Money that you borrow. 18 A bank's main interest rate. 19 Not pay a loan. 21 A bank account you use to
save money. 24 Money you pay to do
something. 25 Guarantee a loan for
somebody else. 28 The opposite of lend. 30 A monthly fee on borrowed
money.
31 What you have if you borrow money.
Down 1 The maximum you can borrow on your credit card.
2 Keep your money __ the bank.
3 A house loan.
4 Go __ the bank. 6 The opposite of save. 9 A cash machine. 12 VISA or MasterCard.
13 You are your own boss. 14 Yearly. 16 Work __ a bank. 20 Move money between bank
accounts. 22 Money that you earn.
23 Money that you withdrew from your account.
24 An interest rate that stays the same.
26 Your monthly wage.
27 Another word for money. 29 Income after you pay taxes.
BANKING BINGO Directions: Write one word in each square. Match each letter and word your teacher reads, or calls out. Cross off each letter and word pair until you have a complete line, horizontally, vertically, or diagonally.
B I N G O
FREE
27
Balance Bills Borrow Cash Change
Check Checking Account Coins Check Register Deposit Slip
Endorse Interest Joint Account Money Order Monthly statement
Overdraft Personalized Check Savings Account Savings Bond Service Charge
Traveler’s check Withdraw Withdrawal slip Deposit
SECTION 2A:
BANK APPLICATIONS, IDENTIFYING REQUIREMENT FOR OPENING AN ACCOUNT
LANGUAGE AND LITERACY OBJECTIVES #7
ADDITIONAL ASSESSMENT PLAN TASK #1
BEGINNING LOW TO BEGINNING HIGH
28
OPENING AN ACCOUNT (BLBH)
Any customer service representative at your bank or credit union can help you open a checking or savings account. You will need to decide whether you want to open a checking account, a savings account, or both.
Discussion Questions
BLBH: Do you have a checking account or a savings account? Are they joint accounts?
IA: What type of account is the best choice for you? Why?
When you open an account, you will need to fill out an application and provide personal information. You will need to provide your Social Security Number, address, phone number, date of birth, and occupation. You may have to provide additional information depending on which bank you choose.
You will need to decide whether or not you will open a Joint Account. A joint account is used by more than one person. For example, you and your husband or wife, can both write checks or make withdrawals from a joint account.
You will also need to decide whether or not you will name a beneficiary for your account. A beneficiary is the person who will receive the money in your account if you die.
You may also have to give your mother’s maiden name. This is your mother’s last name before she married. This fact is used for security purposes since it is a detail very few people would know about you.
29
Filling out an application to open a checking account, savings account or certificate of deposit.
PreWriting Fill in the blanks with your information.
First Name________________ Middle Initial_______ Last Name_________________
Street Address_______________________________ Apartment Number__________
City__________________________ State_________ Zip Code____________
Social Security Number_________________ Date of Birth (MM/DD/YY)____________
Email Address__________________________________________________
Home Telephone__________________ Work Telephone__________________
Occupation_______________________
Is this joint account? If yes, fill in the following information for the other person using the account. First Name_______________ Middle Initial_______ Last Name_________________
Street Address_______________________________ Apartment Number__________
City__________________________ State_________ Zip Code____________
Social Security Number_________________ Date of Birth (MM/DD/YY)___________
Email Address__________________________________________________
Home Telephone__________________ Work Telephone__________________
Occupation_______________________
30
Writing – Use the information on the previous page to fill out the sample account application below.
Application for Personal Checking Account Savings Account or Certificate of Deposit
To open one of the above accounts at Pacific Trust Bank, complete the following application. Please print or type your responses. All account applications are subject to approval.
For A Personal Checking Account What type of Checking Account do you wish to open? ____ Super Checking (interestbearing NOW account) ____ HighYield Checking (tiered rates, unlimited checks) ____ Basic Checking (totally free) ____ Money Market Checking (limited to 3 checks per month)
For A Personal Savings Account ____ Regular Savings ____ Christmas Club (not currently available) ____ Market Rate Account (tiered MMDA account) Money Market Deposit Account ____ Indexed Money Market Account
For Certificate of Deposit What type of Certificate of Deposit do you wish to open? ___3 month CD ___12 month CD ___18 month CD ___36 month CD
___6 month CD ___13 month CD ___21 month CD ___42 month CD
___7 month CD ___Flex 15 month CD ___24 month CD ___48 month CD
___9 month CD ___15 month CD ___30 month CD ___60 month CD
___Money Indexed AddOn 12month CD ___Savings Accumulation 36month CD
___Peace of Mind CD 36month adjustablerate
Will this be an individual or joint account? ___Individual ___Joint
Are you presently a customer of Pacific Trust Bank? ___Yes ___No Will there be a beneficiary on the account? ___Yes ___No
31
Account Ownership Information
Primary Applicant Information Name (First/ MI/ Last) ___________________________________________________
Social Security Number___________________________________________________
Date of Birth (Month/ Day/ Year)___________________________________________
Mother’s Maiden Name___________________________________________________
Primary Applicant Home Address:
Street_________________________________________________________________
City/Town__________________________ State___________ Zip Code___________
Mailing Address (if different)_______________________________________________
Home Telephone______________________ Work Telephone___________________
Email Address________________________ Occupation________________________
Joint Applicant Information (Complete only if joint account) Name (First/ MI/ Last)___________________________________________________
Social Security Number___________________________________________________
Date of Birth (Month/ Day/ Year)____________________________________________
Mother’s Maiden Name___________________________________________________
Primary Applicant Home Address:
Street_________________________________________________________________
City/Town__________________________ State___________ Zip Code___________
Mailing Address (if different)______________________________________________
Home Telephone______________________ Work Telephone___________________
Email Address________________________ Occupation________________________
Beneficiary (Complete only if there is a beneficiary) Name (First/ MI/ Last)___________________________________________________
Address_______________________________________________________________
Relationship____________________________________________________________
Date of Birth (Month/ Day/ Year)____________________________________________
Social Security Number __________________________________________________
Initial Deposit Information Initial Deposit (see account terms for minimum required initial deposit): $____________ If you are making your initial deposit via check, please make the check payable to Pacific Trust Bank for the account of “your name”. 32
Disclosures Government regulations require that we make the following disclosures available to you when you apply for an account with Pacific Trust Bank. You may print these disclosures for your records, if you wish. Links to these disclosures are available at http://www.pacifictrustbank.com/Handbook.html
Acknowledgements/ Certifications By my signature below, I acknowledge and certify the following:
• Each signatory authorizes the Bank to obtain consumer reports from any
consumer reporting agency, including but not limited to a check protection
service for use in connection with this account.
• I(we) certify that (1) that the number shown on this card is my, (our) correct
taxpayer identification number and (2) that I (we) are not subject to backup
withholding, either because I, (we) have not been notified of backup withholding
as a result of failure to report all interest or dividends, or the Internal Revenue
Service has notified me, (us), that I, (we), are no longer subject to backup
withholding. (Instruction to signer: If you have been notified by the IRS that you
are subject to backup withholding due to notified payee underreporting and you
have not been notified that the backup withholding is terminated you should
strike out the language in clause 2 above.)
• The Internal Revenue Service does not require your consent to any provision of
this document other than the certifications required to avoid back up withholding
I, (we) severally, agree to be bound by present or future bylaws, regulations or procedures of Pacific Trust Bank that are or may not become applicable to the Account.
Primary Applicant Signature _____________________________ Date_________
Joint Applicant Signature________________________________ Date_________
33
Web Quest Opening A Bank Account (All Levels)
Directions: Many banks will allow you to open an account online. You can practice opening a bank account in computer lab, a library, at home, or anywhere that access to the internet is available. Follow the directions to practice opening an account with Washington Mutual. (Note: This exercise is for practice only. You will not actually submit your information to the bank.)
1. Double click on the web browser icon on the computer desktop.
2. Type in the address: www.wamu.com
3. In the center of the page you will see the words “Open Online Now”
4. Click on the words “WaMu Free Checking”
5. Look for the words Special ONLINE ONLY offer available when you open a
WaMu Free Checking account & Online Savings together online! And click on the
blue words in the sentence. This will allow you to open a savings account and a
checking account at the same time.
6. Read the account information.
7. Select “No” to answer the question “Do you have an online ID?”
8. Click “Continue”
9. Enter your personal information including Name, Date of Birth, Mother’s Maiden
Name, Social Security Number, ID information, Email, Phone and Address. This is an
individual account application so you will not need to provide information for anyone
else.
10.Click “Continue”
11.Make sure your information is correct and read the disclosure information.
12.Click “Continue”
13.Choose the option “Make your deposit later” “Bring it in/ Mail it in”
14. DO NOT click “Continue” because you are not actually opening an account. 34
Review
BL – A Mark the following questions True or False:
1. Only one person can write checks on a joint checking account. True or False
2. Your mother’s maiden name is her last name after she got married. True or False
3. You are required to name a beneficiary for your bank accounts. True or False
4. Most banks will let you open your new account online. True or False
5. You can choose the type of account that is best for you. True or False
Fill in the Blank
ILA Choose the best word to complete each sentence.
1. Many applications will ask for your mother’s ____________ name.
2. I can open an account ________________.
3. When I open an account I will be asked for my ___________________.
4. I should write my name when the application asks for a _______________.
5. MI stands for _____________________.
6. My occupation is my _______________.
7. More that one person can use a ____________________.
8. I can name a ___________ to receive the money in my account if I die.
35
Word Bank
beneficiary middle initial social security number maiden
signature online job joint account
Discussion Questions: IL – Advanced
Answer each question with a complete sentence:
1. Who would you name as a beneficiary for your account? Why?
2. Why would the bank ask for your mother’s maiden name?
3. Would you open a joint account? Why or why not?
4. Why should you write your signature in handwriting instead of print?
36
Banking Conversation: Opening an Account (ALL Levels)
Bank Employee: A Customer: B
A: Welcome to Wells Fargo (BLUE). Can I help you?
B: I’d like to open an account.
A: What type of account do you want?
B: I would like a checking (RED) account.
A: Are there any special features you would like?
B: Yes, I would like an ATM / Check Card (GREEN) with my account.
A: Okay, how much of an initial deposit can you make today?
B: How about $50 (PURPLE)?
A: That’s fine. Let’s sit down over here and fillout the application.
B: Okay, thank you.
(BLUE) Institutions
(RED) Account Types
(GREEN) Special Features
(PURPLE) Initial Deposit
1. Wells Fargo 2. Bank of America 3. Washington Mutual 4. Banco Popular 5. CitiBank 6. Cathay Bank
1. Checking only 2. Savings only 3. Checking & Savings 4. Joint Checking 5. Interest Checking 6. Custodial Savings
1. ATM / Check Card 2. International Transfer 3. Free Online Banking 4. Online Access 5. No Monthly Fees 6. Overdraft Protection
1. $1 2. $5 3. $50 4. $100 5. $1,000 6. $10,000
Roll the four different colored dice to indicate which of the six variables you will use in the conversation.
Conversation springboards: More advanced students may want to ask the customer why he or she wants certain features. This will lead to conversations beyond the scripted dialogue.
38
SECTION 2B:
BANK APPLICATIONS, IDENTIFYING REQUIREMENT FOR OPENING AN ACCOUNT
LANGUAGE AND LITERACY OBJECTIVES #15
ADDITIONAL ASSESSMENT PLAN TASK #1
INTERMEDIATE LOW TO ADVANCED
42
Loans
Most people cannot afford to buy large items, such as a house or a new car, with cash. In this situation, you can apply for a loan with your bank or credit union.
To get a loan, you must fill out an application and the bank or credit union will do a
credit evaluation or credit check to determine if you are a good credit risk. A credit
evaluation determines your income to debt ratio, or how much you owe versus how
much you earn. It’s better to owe very little. A credit evaluation also checks to see if
you make your loan payments on time, if you have ever defaulted on a loan or if you
have ever declared bankruptcy. If you default on a loan, this means that you did not keep your promise to pay back the money you borrowed. Bankruptcy is a legal
declaration that you are unable to pay your debts. If your credit evaluation shows that
you do not owe a lot of money to other people, that you have made payments for past
loans on time, and you have not declared bankruptcy in the past, you are considered to
be a good credit risk. If the bank determines you are a good credit risk, you may be eligible for a home loan also referred to as a mortgage.
43
Loans
If your credit evaluation shows that you are a bad credit risk, you may
not be able to get a loan or you may have to pay a higher interest rate.
The percentage of the total amount borrowed as a fee for using the money is an interest
rate. If you are a bad credit risk, you may have to get someone to cosign on your
loan. A cosigner is a person other than the borrower who signs the loan agreement
and promises to pay back the loan if you do not.
Other words you should know before you apply for a loan are:
• Debt – money owed that must be repaid.
• Creditor – a person or business that loans money to others. If you apply for a
loan with your bank or credit union, the financial institution is the creditor.
• Debtor – person who owes money
• Late fee – an extra charge if you do not make your payments on time.
What questions should I ask the loan officer before I agree to a loan?
• Will the bank add any fees to the amount I am borrowing?
• What is my interest rate?
• Is the interest rate fixed or variable? A fixed interest rate does not change after I
receive my loan. Interest rates on variable loans can change.
• What are my monthly payments?
• Will my interest rate increase if I make any late payments?
• Am I required to make a down payment? A down payment is the amount the
borrower is required to pay at the closing of the loan. The down payment
reduces the total amount you will need to pay back. If you are buying a house,
the down payment is often 20% of the house’s total value.
• Do I have to provide collateral? Collateral is an asset that you agree to give up
if you default on your loan. This is sometimes called a secured loan. 44
$ $ $ $ $ $
Loans
What information will I be asked to provide when I apply for a loan?
• In addition to the personal information you provided when you opened a checking
or savings account, you will be asked for more detailed financial information.
o Name
o Address
o Birth date
o Phone number
o Driver’s license number
o Social security number
o Number of dependents (a dependent is someone who depends on
you for financial support, such as your children)
o Do you own or rent your home? How long have you lived there?
o The name and address of your employer
o The amount of money you make each month
o Your current assets and debts
o Information on your current debts including creditor and amount
owed.
When you have the information listed above, you are ready to practice applying for a loan.
Fill in the following sample loan information. You do not have to use your real personal information if you don’t want to.
45
Pacific Trust Bank
Loan Application
TYPE OF CREDIT REQUESTED: (Check the appropriate loan)
___ Secured ___ Individual Credit (relying solely on my income or assets)
___ Unsecured
TYPE OF LOAN BEING APPLIED FOR: ___ Savings/ CD Secured ___ Personal Line of Credit
___ Term Unsecured Loan ___ Automobile Loan
___ RV/ Boat Loan INTEREST RATE PREFERRED:
___ Fixed Rate ___ Variable Rate AMOUNT REQUESTED: $____________ FOR HOW LONG? ___________ YEARS PAYMENT DATE DESIRED: __________ THIS LOAN WILL BE USED FOR: _____________
Section A – Individual Applicant Information
Name (Last, First, Middle) ________________________________________________ Birth Date _________ Telephone Number _______________________________ SSN ___________ Driver’s License No. ______________________________ Number of Dependents _________________ Ages of Dependents ______________
Address (Street, City, State, Zip Code):
______________________________________________________________________ County ______________ Do you ___ Own or ___ Rent? How Long? ______ Previous Address (Street, City, State, Zip Code): Complete if less that three years at your current address.
______________________________________________________________________ County ______________ Did you ___ Own or ___ Rent? How Long? ______ Employer: (company name and address) __________________________________ ________________________________________ How Long? ________________
Business Phone ____________ ext. ______ Position or Title __________________ Salary Per Month – Gross $ _____________
46
Previous Employer: (company name and address) __________________________ ________________________________________ How Long? ________________ Name and Address of Nearest Relative Not Living With You ___________________
________________________________Relationship __________________________ Telephone Number (include area code) ____________________________________ Alimony, child support, or separate maintenance income need not be revealed if you do not wish to have it considered as a basis for repaying this obligation.
Alimony, Child Support, Separate maintenance received under:
___ Court Order ___ Written Agreement ___ Oral Understanding Sources of Other Income ________________________________________________ Amount Per Month $__________________
Is any income listed in this Section likely to be reduced before the credit request is paid off? ____ No ____ Yes (Explain) ________________________________ Have you previously received credit from us? ___ No ___ Yes – When? ______
Section B – Joint Applicant or Other Party Information
Name (Last, First, Middle) ________________________________________________ Birth Date _________ Telephone Number _______________________________ SSN ___________ Driver’s License No. ______________________________ Number of Dependents _________________ Ages of Dependents ______________
Relationship to Applicant (if any) _________________________________________ Address (Street, City, State, Zip Code): ____________________________________________________ How Long? ______ Employer: (company name and address) __________________________________
________________________________________ How Long? ________________ Business Phone ____________ ext. ______ Position or Title __________________ Salary Per Month – Gross $ _____________ Previous Employer: (company name and address) __________________________
________________________________________ How Long? ________________ Alimony, child support, or separate maintenance income need not be revealed if you do not wish to have it considered as a basis for repaying this obligation.
47
Alimony, Child Support, Separate maintenance received under:
___ Court Order ___ Written Agreement ___ Oral Understanding Sources of Other Income ________________________________________________
Amount Per Month $__________________ Is any income listed in this Section likely to be reduced before the credit request is paid off? ____ No ____ Yes (Explain) ________________________________ Has joint applicant or other party ever received credit from us?
___ No ___ Yes – When? ______
Section C – Marital Status
Complete only if: for joint or secured credit, or applicant resides in a community property state
or is relying on property located in such a state as a basis for repayment of the credit requested.
Applicant ___ Married ___ Legally Separated ___ Unmarried (including single, divorced and widowed
Other Party ___ Married ___ Legally Separated ___ Unmarried (including single, divorced and widowed
Section D – Asset & Debt Information If Section B has been completed, this Section should be completed about both the Applicant and Joint Applicant or Other Person. Please mark Applicantrelated information with an “A”. If Section B was not completed, only give information about the Applicant in this Section. Assets Owned (use separate sheet if necessary) Description of Assets Name in which the account is
carried Subject to debt? Value
Checking Account Number(s) (where)
$
Savings Account Number(s) (where) Certificate of Deposit(s) (where) Marketable Securities (issuer, type, no. of shares) Real Estate (location, date acquired) Life Insurance (issuer, face value) Automobiles (make, model, year) Other (list) 48
Outstanding Debts (including charge accounts, installment contracts, credit cards, rent mortgages and other obligations. Use separate sheet if necessary. Creditor Account
Number Name in which account is carried
Original Amount
Present Balance
Monthly Payments
Landlord or Mortgage Holder
___Rent ___Mortgage
Omit rent $
Omit rent $ $
Automobiles (describe)
Total Debts $
Complete the following information about both the Applicant and Joint Applicant or Other Person (if applicable): Are you obligated to make Alimony, Support, or Maintenance Payments? ___No ___Yes If yes, to (Name and Address) _____________________________________________ Amount per month $____________ Are you a comaker, endorser, or guarantor on any loan or contract? ___No ___Yes If yes, for whom? _____________________ To whom? _________________________ Are there any unsatisfied judgments against you? ___No ____ Yes If yes, to whom owed? ______________________________Amount $____________ Have you been declared bankrupt in the last ten years? ___ No ___Yes If yes, where? ____________________________________ Year? _______________
Section E – Secured Credit Complete only if credit is to be secured. Briefly describe the property to be given as security.
Property Description ___________________________________________________
Names & address of all coowners of the property ____________________________
If the security if real estate, five the full name of your spouse (if any) ______________
Signatures – I certify that everything I have stated in this application an on any attachments is correct. You may keep this application whether or not it is approved. By signing below I authorize you to check my credit and employment history and to answer questions others may ask you about my credit record with you. I understand that I must update credit information at your request if my financial condition changes.
________________________________ ________________________________ Applicant’s Signature Date Other Signature Date
49
Review
Directions: IL to Advanced Fill in the blank with the correct word from the word bank.
1. A ______ is money owed that must be repaid.
2. A ___________ is a person or business that loans money to others.
3. A person who owes money is a ____________.
4. An extra charge if you do not make your payments on time is a __________.
5. A house loan is called a_____________.
6. A ____________ determines your income to debt ratio.
7. If you _________ on a loan, this means that you did not keep your promise to pay
back the money you borrowed.
8. _______________ is a legal declaration that you are unable to pay your debts.
9. If your credit evaluation shows that you do not owe a lot of money to other people
then you are considered to be a __________________.
10. If your credit evaluation shows that you are a_______________, you may not be
able to get a loan.
11.The percentage of the total amount borrowed as a fee for using the money is an
________.
12.A _____________ is a person other than the borrower who signs the loan
agreement and promises to pay back the loan if you do not.
50
Word Bank
Credit Evaluation Bad Credit Risk Debt Debtor Late fee
Cosigner Default Mortgage Good Credit Risk Creditor
Bankruptcy Interest Rate
Review
IL to Advanced Answer the Questions:
1. What are three questions that you should ask the loan officer before agreeing to a loan?
2. What information will you probably be asked to provide on a loan application?
True or False
1. A house loan is called a mortgage. True False
2. Most people can afford to buy a home or car with cash. True False
3. If you default on a loan, you made all your payments on time. True False
4. When you apply for a loan, the bank will do a credit evaluation. True False
5. If you are a good credit risk, you will probably have to pay a high interest rate. True False
51
SECTION 3: READ AND FILL OUT A PERSONAL CHECK, A CHECK REGISTER AND/OR DEPOSIT AND WITHDRAWAL
SLIPS
LANGUAGE AND LITERACY OBJECTIVE #11
ADDITIONAL ASSESSMENT PLAN TASK #2 & #3
LEVEL: BLADVANCED
57
REVIEW CHECKING ACCOUNTS
BLAdvanced Levels
Directions: review the “Choosing a Checking Account” information on page 15. Read the following questions and circle the best answer.
1. A Minimum Balance Account is for you if
a. you write only 5 checks each month. b. you write a lot of checks. c. you don’t write any checks.
2. If you don’t keep the required minimum balance in your Minimum Balance Account, you
a. may have to transfer money. b. may have to open a new account. c. will be charged a fee.
3. A Regular Checking Account is good if you
a. can keep a minimum balance in your account. b. can’t keep a minimum balance in your account. c. have a lot of extra cash.
4. The service charge on a Regular Checking Account is based on
a. how much money you have in your account. b. your minimum balance. c. how many checks you write. .
59
REVIEW CHECKING ACCOUNTS
BLAdvanced Levels
Directions: review the “Choosing a Checking Account” information on page 15, then select the best word to fill in each blank.
Free Minimum Balance Special Regular
1. With a ______________ Checking Account, you pay a service charge each time you write a check.
2. A ______________ Checking Account allows you to keep any balance in your account and write an unlimited number of checks
3. A ______________ Checking Account is for people who can’t keep a minimum balance in their account.
4. _______________ Checking Account may be for you if you write a lot of checks and have some extra money.
61
Checks Checks are sometimes more convenient than cash. They are often used to pay bills because it is never a good idea to send cash in the mail.
Look at the sample check below to identify the parts of a check.
Date ______
Pay to the order of _____________________________________________ $ _________________
______________________________________________________________________________ Dollars
Bank’s Name Address City, State Zip Code
For ____________________ ______________________________________
012345678 00000281609 001001
1. Your personal information: Name
Address
City, State Zip Code
You can include your phone number if you want
2. The number of the check (1001, 1002, 1003, 1004, etc.) The number is also
printed on the last line.
3. Your banks information: Name
Address
City, State Zip Code
4. Your bank’s routing number. This number identifies the bank.
5. Your bank account number.
6. The check number (same as #2.)
63
Your Name Your Address City, State Zip Code
1001 1.
2.
3.
4. 5.
6.
Writing Checks
What to write Example 1. Write the date
August 6, 2007 or 8/6/07
2. Write the name of the person or Target
business that gets the check
3. Write the amount of the check in numbers $34.45
4. Write the amount of dollars in words thirtyfour
Write the amount of cents in numbers 45/100
Draw a line to the word dollars thirtyfour
and 45/100
5. Write a note to remember what school supplies
the check was for (this is not required but
can help when you balance your checkbook)
6. Sign your name Your Name
64
Your Name 1004 Your Address City, State Zip Code Date 1.___________
Pay to the order of _______________2.______________________________ Amount $___3.___________
_____4.____________________________________________________________________________ Dollars
Bank’s Name Address City, State Zip
For ___5.____________________ _______6___________________________________
1234567 0000000000160945456454 1004
Writing Numbers Review the spelling for numbers.
Dollar Amounts 1 one 2 two 3 three 4 four 5 five 6 six 7 seven 8 eight 9 nine 10 ten 11 eleven 12 twelve 13 thirteen 14 fourteen 15 fifteen 16 sixteen 17 seventeen 18 eighteen 19 nineteen 20 twenty 21 twentyone 22 twentytwo 23 twentythree 24 twentyfour 25 twentyfive 26 twentysix 27 twentyseven 28 twentyeight 29 twentynine 30 thirty 40 forty 50 fifty 60 sixty 70 seventy 80 eighty 90 ninety 100 one hundred
101 one hundred one 102 one hundred two 103 one hundred three 104 one hundred four 105 one hundred five 106 one hundred six 107 one hundred seven 108 one hundred eight 109 one hundred nine 110 one hundred ten 111 one hundred eleven 112 one hundred twelve 113 one hundred thirteen 114 one hundred fourteen 115 one hundred fifteen 116 one hundred sixteen 117 one hundred seventeen 118 one hundred eighteen 119 one hundred nineteen 120 one hundred twenty
Cents (¢) Amounts 0 ¢ 00/100 or no/100 1 ¢ 01/100 2 ¢ 02/100 3 ¢ 03/100 4 ¢ 04/100 5 ¢ 05/100 6 ¢ 06/100 7 ¢ 07/100 8 ¢ 08/100 9 ¢ 09/100 10 ¢ 10/100 11 ¢ 11/100 14 ¢ 14/100 20 ¢ 20/100 45 ¢ 45/100 56 ¢ 56/100 78 ¢ 78/100 81 ¢ 81/100 90 ¢ 90/100 99 ¢ 99/100 65
Practice Writing Numbers Write each amount in words.
1. 10 _________________________________
2. 35 _________________________________
3. 134 ________________________________
4. 67 _________________________________
5. 89 _________________________________
6. 2 __________________________________
7. 41 _________________________________
8. 256 ________________________________
9. 782 ________________________________
10.120 ________________________________
11.98 _________________________________
12.10/100 ______________________________
13.49/100 ______________________________
14.03/100 ______________________________
15.62/100 ______________________________
16. 99/100 ______________________________
17. 34/100 ______________________________
18.75/100 _______________________________
19.32/100_______________________________
20.81/100 _______________________________ Write each amount in number form
1. ninetyeight cents _____________________
2. thirtynine ___________________________
3. ninetyfour __________________________
4. fiftyseven cents ______________________
5. eleven _____________________________
6. seventeen __________________________
7. four cents __________________________
8. one hundred fourteen _________________
9. two hundred sixtyseven _______________
10. five hundred eighteen _________________ 66
Things to remember when you write a check
• Always write checks in ink.
• Fill in all of the amount line. If you have extra room, draw a line to fill in the extra
space.
• NEVER sign a blank check.
• Consider buying duplicate checks. This type of check is a little more expensive but
you always have a copy of your checks for your records.
• You don’t have to buy your checks at your bank. You just have to provide the bank’s
routing number and your account number to the check company and they can print
your checks.
Discussion 1. Why should you use ink to fill in your checks?
2. Why is it important to fill in the entire amount line on your check?
3. Why would it be a bad idea to sign a blank check?
68
Practice – Reading Checks
Answer each question.
1. Who will receive the check? ________________________________
2. How much is the check written for? __________________________
3. When was the check written? _______________________________
4. Who wrote the check? _____________________________________
5. Why was the check written? ________________________________
6. What is the check number? _________________________________
Answer each question True or False.
1. This check was written to James C. Morrison. True False
2. The amount of the check is two hundred ninetysix dollars and fortyone cents.
True False
3. The date the check was written was September 2, 2007. True False 70
1005
Sept. 15, 2007
Southern California Edison 187.53 One hundred eightyseven and 57/100
Mary A. Morrison Sept. Electric bill
Sept. 2, 2007
1010
City of Anaheim 241.96
Two hundred fortyone and 96/100
James C. Morrison September water bill
Practice Writing Checks 1. You need to make a car payment to Ford Motor Finance on September 16, 2007 for two
hundred thirtytwo dollars and fourteen cents. Fill in the check below with the correct
information.
2. Today is September 22, 2007. You need to pay for groceries at Ralph’s. Your total is
sixtyseven dollars and eight cents.
72
Your Name 1005 Your Address City, State Zip Code Date ____________
Pay to the order of _________________________________________________ Amount $________________
___________________________________________________________________________________ Dollars
Bank’s Name Address City, State Zip
For ______________________ ____________________________________________
1234567 0000000000160945456454 1005
Your Name 1004 Your Address City, State Zip Code Date ____________
Pay to the order of _________________________________________________ Amount $________________
___________________________________________________________________________________ Dollars
Bank’s Name Address City, State Zip
For ______________________ ____________________________________________
1234567 0000000000160945456454 1004
3. You are at Party City on September 24, 2007 buying party supplies for your son’s
birthday party next week. The total is thirtyseven dollars and ninetyeight cents.
4. Your September gas bill is fiftyseven dollars and twelve cents, so you write a check
on September 25, 2007 to the Southern California Gas Company.
73
Your Name 1006 Your Address City, State Zip Code Date ____________
Pay to the order of _________________________________________________ Amount $________________
___________________________________________________________________________________ Dollars
Bank’s Name Address City, State Zip
For ______________________ ____________________________________________
1234567 0000000000160945456454 1006
Your Name 1007 Your Address City, State Zip Code Date ____________
Pay to the order of _________________________________________________ Amount $________________
___________________________________________________________________________________ Dollars
Bank’s Name Address City, State Zip
For ______________________ ____________________________________________
1234567 0000000000160945456454 1007
Using A Check Register A check register helps you keep a record of deposits, checks you write, or any withdrawals
from your checking account. The bank will give you a check register to help you keep track
of how much money is in your checking account.
Look at the sample check register below. Notice the information that should be recorded in
each column for every transaction.
76
1. 2. 3. 4. 5. 6. 7. 8.
AD Automatic Deposit AP Auto. Payment ATM Teller Machine DC Debit Card TD Tax Deductible TT Telephone Transfer
1. Balance – this refers to the most recent balance which is carried over from the
previous page in your register
2. Number or Code – number refers to check number; code refers to the codes listed at
the top of the register to tell you what type of transaction is recorded. For example, if
your paycheck is automatically deposited each month, use the code AD. If you have
automatic payments scheduled to be withdrawn from your account regularly, the
amount should be coded AP. Any amounts deposited or withdrawn from an
automated teller machine, should be coded ATM. When you use your debit card to
make a purchase, use the code DC. If you transfer money from one account to
another over the phone, use the code TT for telephone transfer.
3. Date – record the date that the transaction took place.
4. Transaction Description – this area allows you to record whom you wrote the check
to or any other information that describes the transaction that took place.
5. Payment Amount – record amounts that will be taken out of your account.
6. a check off each item that appears on your monthly statement as you balance your
checkbook each month.
7. Fee record any fees associated with each transaction. For example, you may be
charged a small fee for using an ATM that is not part of your bank.
8. Deposit Amount record any transactions that will be added to your account balance.
77
Practice Reading A Check Register Use the sample check register to answer the following questions.
78
groceries AD 9/15
Cash withdrawal
Citibank
202 9/10 Ralph’s
47 .92 513 .42
Deposit paycheck
1206 .17 1719 .59
ATM 9/18 ATM
60 .00 1658 .09
203 Target school supplies
53 .17 1604 .92 9/19
204 9/28 credit card payment
128 .65 1476.27
AD Automatic Deposit AP Auto. Payment ATM Teller Machine DC Debit Card TD Tax Deductible TT Telephone Transfer
561 .34
1.50
Look at the sample check register on the previous page. Use the information to answer the following questions.
1. What check number was written on September 9 to Ralph’s? ______________
2. How much was the fee charged for the ATM withdrawal on September 18? _____
3. What was the reason for the check written to Citibank? ____________________
4. What was the amount of the check written to Target on September 19? _________
5. What was the balance of the account on September 18? ___________________
Answer each question True or False based on the sample check register.
1. Check number 203 was written to pay for school supplies. True False
2. The total amount taken from the account on September 18 was $60.
True False
3. The paycheck deposited on September 15 is coded as an Automatic Payment.
True False
4. Check 204 to Citibank was for the amount of $1,476.27. True False
5. Check 202 was written to Albertson’s. True False
79
Practice Recording Transactions In Your Check Register
Record each transaction in the sample check register below.
1. The current account balance is four hundred seventyone dollars and eightysix cents.
2. Your paycheck is automatically deposited on September 15 in the amount of two
thousand three hundred twelve dollars and fortysix cents.
3. You made a car payment to Ford Motor Finance on September 16, 2007 for two
hundred thirtytwo dollars and fourteen cents with check 1004.
4. On September 22, 2007, you paid for groceries at Ralph’s with check 1005. Your total
was sixtyseven dollars and eight cents.
5. You were at Party City on September 24, 2007 buying party supplies for your son’s
birthday party. The total was thirtyone dollars and ninetyseven cents. You wrote
check number 1006.
6. Your September gas bill was fiftyseven dollars and twelve cents, so you wrote check
1007 on September 25, 2007 to the Southern California Gas Company.
7. On September 26, you withdrew eighty dollars from your bank’s ATM.
81
Recording Transaction Practice
82
AD Automatic Deposit AP Auto. Payment ATM Teller Machine DC Debit Card TD Tax Deductible TT Telephone Transfer
Deposit and Withdrawal Slips
When you go to the bank to make a deposit or withdrawal from your account, you may be
asked to fill out a deposit or withdrawal slip. This is a written record of how much money you
are putting in or taking out of your account. Most of the time this is the same form.
Look at the sample deposit/ withdrawal slip below.
1. Enter the amount of cash you are depositing.
2. Enter the amount of each check you are depositing. (if you are depositing more than
two checks, you will need to use the worksheet on the back.)
3. Add the amount of cash and checks/
4. Write the amount of cash, if any, you would like back from the deposit amount.
5. Write the total amount you are depositing in your account.
6. If you are withdrawing money from your account, enter the amount and form of
currency you want to receive – cash, money order, or cashier’s check.
7. Add the amount of cash, money orders, or cashier’s check.
8. If you want to move money from this account to another account, enter the amount
you wish to transfer.
9. Add the total amount being withdrawn or transferred.
10.Sign your name. 84
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
If you are depositing more than two
checks, you will need to list the amount of
each check on the back and add to find the
total amount. This is the amount you will
write in the blank labeled “Total From
Reverse Side.”
85
Practice – Reading Deposit and Withdrawal Slips
1. What is the total amount deposited? _______________________
2. How much cash is being deposited? _______________________
3. What is the amount of the check being deposited? ____________
4. Is any cash being taken out of the deposit? __________________
86
120 .00
Customer Name _______________ Account Number ______________ Date _______ Deposit Withdrawal
Signature X___________________
Cash 120 00 Checks 250 00 Total from Reverse Side Subtotal 370 00 Less Cash Back Less Money Orders Other Total Deposit 370 00
Cash Money Order Official Check Payable To: Other Subtotal Transfer Amount Transfer to Account Total Withdrawal
Practice – Reading Deposit and Withdrawal Slips – Part 2
1. How much cash is being withdrawn? __________________
2. What is the amount for the money order? ______________
3. How much money is being transferred to another account? _________________
4. What is the account number the money is being transferred to? _____________
5. What is the total withdrawal amount? ____________________
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Customer Name _______________ Account Number ______________ Date _______ Deposit Withdrawal
Signature X___________________
Cash Checks Total from Reverse Side Subtotal Less Cash Back Less Money Orders Other Total Deposit
Cash 200 00 Money Order 200 00 Official Check Payable To: Other Subtotal 400 00 Transfer Amount 135 00 Transfer to Account 2234179 Total Withdrawal 535 00
SECTION 4: READ AND RECONCILE FINANCIAL STATEMENTS
Language and Literacy Objective #1 Read and reconcile financial statements
Additional Assessment Plan Task #4 Reconcile a bank statement: given a bank statement, completed check register, and
reconciliation form, student will reconcile the bank statement
LEVEL: ILADVANCED
94
Credit Cards and Bank Statements
Vocabulary
Credit – borrowing money now and paying later.
Credit Cards – cards that you use to buy goods and pay for them later
Credit Rating – tells the lender whether you will be able to pay back the borrowed money.
Debt – the money that you have borrowed from a person or business.
Application – a written form you fill out to apply for a credit card.
Due Date – the date that the company must receive your payment.
Minimum Payment – the least amount of money you should pay.
We don’t always have cash on hand to buy all the things that we need in our everyday lives. For example suppose you need new tires for your car – they are really old and worn out. You cannot wait too long, because it’s not safe to drive around with worn out tires. When you get an estimate, you find it will cost $600.00 to replace the front tires. If you save $50 from your paycheck each month, how long will it take before you have saved up enough to buy the tires? Can you wait that long? Is it safe to wait that long? Probably not, so you might need access to a credit card so you can buy the tires as soon as possible.
What is Credit?
When you don’t have cash, credit allows you to buy things and pay for them later. It’s borrowing money from companies, stores, or banks. They charge you interest for allowing you to use the credit.
What is a Credit Card?
A Credit Card looks like any other plastic card. The name and the logo of the company along with numbers and your name is printed on it. It also has the expiration date on it. A Credit Card allows you to make purchases for which you pay at a later date.
95
Types of Credit Cards
There are different types of Credit Cards issued by different companies, stores or banks. Store Cards are issued by large stores; for example Nordstrom, Sears, JCPenny and other stores. The store cards can be used only in the different branches of the same store. Major Cards are issued by banks. Bank cards can be used in many places, for example; in restaurants, grocery stores, gas stations, motels, and many other places.
Why should I have A Credit Card?
It’s useful to have a credit card, but remember you have to pay interest on the purchases. Let’s look at some advantages and disadvantages of it.
Advantages Of A Credit Card.
1. A Credit Card is easier to carry then a bundle of money in your pocket. 2. A Credit Card is easier to carry when you are traveling. 3. You have only one bill to pay at the end of the month rather than
mailing payments to several different stores. 4. You build a good credit rating by using your credit card and paying the bill
on time.
Disadvantages Of A Credit Card.
1. Using your card to buy more than you can afford. 2. Many companies charge a very high interest. 3. It is easy to overspend when using a credit card. 4. You can very easily get into debt with credit cards.
How Can I Apply for A Credit Card?
If you are at least 18 years old, you can apply for a credit card. All you have to do is fill out a credit card application, mail it and then wait a few days. The company will process your application and inform you by mail. You can also go online and apply for it.
96
Some Important Things To Remember:
• Use Credit Cards only to buy things you can afford. • Pay the full amount by the due date. • If you cannot pay the full amount, pay the minimum payment. • Don’t be late on your payments. • You will be charged interest on the unpaid amount. • Always check your monthly statement and compare it with your
purchases. • Call the company if you see a mistake on the monthly statement. • It is easy to get into debt with credit cards. • Don’t be tempted. Use the credit cards wisely. • Don’t carry too many cards with you. • Keep your cards in a safe place.
What If The Credit Card Is Lost Or Stolen?
If your credit is lost or stolen report it immediately or as soon as you find it. Call the credit company or the bank. Tell the representative that your card has been lost or stolen. He will ask you for your account number. To stop the thief from using your card they will close your account and cancel your card. In this way your card cannot be misused. The company or the bank will issue you a new card with a new account number.
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CREDIT CARD EXERCISE:
Matching:
______ 1. The date that the payment must be a. application received by the company is the __________.
______ 2. If you cannot pay all of your credit b. interest card bill, the credit card company will charge you high ___________.
______ 3. If you use your credit card to buy c. minimum more than you can afford, payment
you will have _________.
______ 4.The least amount you can pay is the ________________. d. due date
______ 5.A written form you fill out to apply e. credit rating for credit is called an __________________.
______ 6.Cards that let you buy things now and f. debt and pay for them later are called __________________.
______ 7.If you always pay your bills on time you are g. credit cards building a good _________________.
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Directions: Fill out the form, and review the credit card terminology on the next page.
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Credit Card Application Form
Individual Applicant Information
Name (Last, First, Middle)
BIRTHDATE TELEPHONE NO. DRIVER’S LICENSE NO. SOCIAL SECURITY NO. NO. DEPENDENTS
ADDRESS (Street, City, State and Zip) COUNTY Do You:
OWN RENT
How Long
ADDRESS (Street, City, State and Zip) (Complete if less than 3 years at present address) COUNTY Do You:
OWN RENT
How Long
Employment Information
EMPLOYER (Company Name and Address) How Long
BUSINESS PHONE Ext. POSITION OR TITLE SALARY PER MONTH
GROSS $ PREVIOUS EMPLOYER (Company Name & Address) How Long
NAME & ADDRESS OF NEAREST RELATIVE RELATIONSHIP TELEPHONE NO. (include area code) NOT LIVING WITH YOU
By submitting this application, I certify that I have read, met and agreed to all of the terms, conditions and disclosures related to this application.
Signed: __________________________________________________________ Date: ________________________
SEE REVERSE FOR TERMS & CONDITIONS: TERMS AND CONDITIONS
Returned payment fee: $29.
Foreign transaction fee: None.
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ANNUAL PERCENTAGE RATE (APR) for purchases‡
A variable rate, currently equal to 7.89% (0.02162% daily periodic rate).
Other APRs Balance transfer APR: Same as for purchases. Cash advance APR: A variable rate, currently equal to 19.79% (0.05422% daily periodic rate). Default APR: A variable rate, currently equal to 28.15% (0.07712% daily periodic rate). See explanation below.‡
Variable Rate Information
Your purchase APR may vary quarterly. The rate will be determined by adding 2.53% to the Prime Rate. Your cash APR may vary quarterly. The rate will be determined by adding 14.43% to the Prime Rate. Rates in effect 07/01/07. Your default APR may vary monthly. The rate will be determined by adding 19.9% to the Prime rate.♦♦ Rate in effect 08/01/07.
Grace period for repayment of the balance for purchases.
25 days from the date of the periodic statement on new purchases (provided you have paid your previous balance in full by the due date).
Method of computing the balance for purchases.
Average daily balance (including new purchases).
Membership Fee
None.
Minimum finance charge
For each billing period that your account is subject to a finance charge, a minimum total FINANCE CHARGE of $0.50 will be imposed.
Miscellaneous Fees
Cash advance fee: 3% of amount of the cash advance, but not less than $5. Balance transfer fee: None. Late payment fee: Your late payment fee will be based on the amount of your account balance at the time the fee is applied. Balance of $0 $99.99 = $19 fee; balance of $100 $999.99 = $29 fee; balances of $1,000 or more = $39 fee. Overthecreditlimit fee: Your overthecreditlimit fee will be based on the amount of your credit limit at the time the fee is applied. Credit limit of $0 $499.99 = $19 fee; credit limit of $500 $999.99 = $29 fee; credit limits of $1,000 or more = $39 fee.
The Bank Statement
Vocabulary:
Credit – money added to your account.
Debit – money subtracted from your account.
Service Charge – the bank charges money to handle your account.
Ending Balance – the amount of money in your account at the time that the statement was printed.
After opening an account, you start using it by writing checks, depositing money, and using Automatic Teller Machines (ATMs). Such activities are called “making transactions”. You can keep track of transactions by entering them into your checkbook register. Your bank also keeps track of all your transactions, and at the end of the month sends you a statement. This is called the bank statement.
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Reading A Bank Statement
A bank statement has the following parts:
• Account Summary – in this part of the statement are listed the deposits, debits, and the ending balance.
• Deposits and Credits – in this part of the statement are listed all the money that was put into your account by checks and cash.
• Checks and Debits – in this part of the statement are listed all the money that was taken out of your account by checks and cash withdrawals.
Each month two records are being kept of your checking account:
1. You have kept track of your checks, deposits, ATM withdrawals and service charges in your check register or on your bank stubs.
2. Your bank has also kept track of all these transactions and recorded them. And at the end of the month sends you the statement.
Your records and the banks records should show the same amount of money in your bank account. When you receive the bank statement, read it carefully and compare it with your check register. Making sure the records are the same is called balancing or reconciling your account.
Here are few things to remember while balancing your check register:
a. Put a check mark on the line in your check register for every check and every deposit that is listed in your bank statement. This shows that the check has cleared.
b. The checks that are not listed on the statement are the checks that have not cleared and are called outstanding checks.
c. Next, add these outstanding checks and any deposits that you made since the bank statement.
d. Now, subtract this amount from the ending balance on the statement.
e. The amount that you get should match the amount in your check register.
Once you learn to balance your check register and reconcile your account, you can manage your money and use your account successfully.
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When the Account Does Not Balance
If your account does not balance, here are few steps that you can follow:
1. Make sure that you have added and subtracted the correct amount. Is the amount on your check and the check register the same?
2. Make sure the amount of deposit is correct. Check your deposit slip before entering it in your bank register.
3. Most banks charge a service fee. Make sure you subtract these or any other charges that your bank may have made.
4. Remember to subtract any ATM withdrawals, debit card charges or automatic deductions.
These important steps will help you to balance your check register and reconcile your account. If your account still does not balance, pick up the phone and call your bank and resolve the issue as soon as you can. Banks have employees who will help you to fix the problem and help you to balance your account.
The best way to keep track of your account is to keep a check register. You can also keep track on line, by phone, ATM and in person. If for any reason the check register and the bank statement does not reconcile, take action immediately. You do not want to pay a large fee for bouncing checks.
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READ AND RECONCILE FINANCIAL STATEMENTS
Instructions: Use the following information to write checks, record transactions in the check register and reconcile (balance) your checkbook and monthly statement.
A. Write a check for each amount and record the transactions in your check register:
1. Your starting balance is $467.89. 2. Direct Deposit of your paycheck on September 1, 2007 in the
amount of $1,247.54. 3. Check 202 written on September 3, 2007 to Forest Trail
Apartments for September rent in the amount of $985.00. 4. Check 203 written on September 5, 2007 to ATT in the amount of
$78.42 for the phone bill. 5. Check 204 in the amount of $324, written on September 15, 2007
to Ford Motor Finance for your September car payment. 6. ATM deposit of $78 on September 17, 2007.
7. Check 205 to the City of Anaheim in the amount of $122.65 for gas and water, written on September 18, 2007.
8. Debit card purchase at Target for $27.12 on September 19, 2007. 9. ATM withdrawal of $40 on September 20 with a $1.50 fee.
10.Debit card purchase on September 21 at Ralph’s in the amount of $45.03.
11.ATM Deposit $135 on September 22, 2007. 12.Check 206 to WalMart in the amount of $56.89 on September 23,
2007 for school supplies.
B. Find the current balance for your checking account. (Refer to check register.) C. Compare your check register to your bank statement to see that all checks,
deposits and fees have been recorded. Correct your register if anything has not been recorded. (Refer to statement and register.)
D. Use the “Items Outstanding” worksheet to find your current balance.
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Check Register
Check Register – Key
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AD Automatic Deposit AP Auto. Payment ATM Teller Machine DC Debit Card TD Tax Deductible TT Telephone Transfer
SAMPLE STATEMENT
Bank of America Statement Date: September 20, 2007 Account Number 123456789
Your Name Your Address Anaheim, CA 90602
Checks/Debits Check Number Date Amount 202 9/3 $985.00 203 9/3 $78.42 204 9/15 $324.00 205 9/18 $122.65 Target 9/19 $27.12 ATM 9/20 $41.50
Deposits/Credits Transaction Type Date Amount Transfer/ Direct Deposit 9/1 $1,247.54 ATM Deposit 9/17 $78.00
Fees/Charges Fee Type Amount Monthly Account Fee $5.00 Checks $18.00
Account Summary Beginning Balance on August 16 $467.89 Total Deposits $1,325.54 Total Debits and Fees $1,601.69 Ending Balance on September 20, 2007 $191.74
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ITEMS OUTSTANDING CALCULATION WORKSHEET 1. Use the following worksheet to calculate your overall account balance. 2. Go through your register and mark each check, withdrawal, ATM transaction, payment, deposit or
other credit listed on your statement. Be sure that your register shows any interest paid into your account and any service charges, automatic payments or ATM transactions withdrawn from your account during this statement period.
3. Use the chart below, list any deposits, transfers to your account, outstanding checks, ATM withdrawals, ATM payments or any other withdrawals (including any from previous months), which are listed in your register but not shown on your statement.
ITEMS OUTSTANDING
Number Amount
Total $
Ø ENTER A. The NEW BALANCE shown on your statement……………………………………$_________
Ø ADD B. Any deposits listed in your $__________
register or transfers into $__________ your account which are not $__________ shown on your statement $__________
TOTAL………….$__________
Ø CALCULATE THE SUBTOTAL………………………$__________ (add Parts A and B)
Ø SUBTRACT C. The total outstanding checks and
withdrawals from the chart above……………….$__________ Ø CALCULATE THE ENDING BALANCE
(Part A + Part B – Part C) This amount should be the same at the current balance shown in your check register………………..
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$
SECTION 5: Writing a Bank Service Letter
Language and Literacy Objective #2 Compare advantages and disadvantages of using cash, credit, checks, debit cards, and online services to make purchases and pay expenses.
Additional Assessment Plan Task #5 Completing an authentic writing task; for example, student will, 1. write a letter to the bank to complain about an error in the statement in Task 4. In the letter, the student will state the problem and describe how it can be remedied to student’s satisfaction, or 2. student will write an article for the school newsletter in which student explains the advantages and disadvantage of using cash, credit, checks, debit cards, and online services to make purchases and pay expenses.
LEVEL: ILADVANCED
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Checks Advantages and Disadvantages
Maria just moved into a new house. She also got a new job. She’s now making a lot more money. So, she went and bought some new furniture and some new items for the house. That means she has more bills to pay along with the utility bills each month. She doesn’t have time to pay the bills in person. What would be the most convenient method to pay the bills each month? Maria decides to write checks.
Some of the advantages of checks are:
1. You can use checks to pay bills by mail. You don’t have to pay in person. Simply write the check and put it in the mail.
2. They are convenient and easy to use.
3. You don’t have to carry large amounts of money with you.
4. You can use checks to make purchases.
5. You don’t have to pay to cash checks.
6. It is safer to use checks. If your check is lost or stolen, you can ask your bank to stop payment on the check. By doing so, your money is safe. The bank may charge you a fee for the stop payment.
7. It is cheaper to use checks for payments than to use money orders.
8. Checks help you keep track of your money. Your bank will return your cancelled checks or a list of cancelled checks. Keep these. They show how you spend your money.
Some disadvantages of checks are:
1. Some businesses do not accept personal checks.
2. Your bank may charge you a service fee for writing too many checks.
3. You may be required to keep a minimum balance in the bank.
4. Some banks may charge a fee for each month that your balance is low.
USE THE VENN DIAGRAM ON THE NEXT PAGE TO COMPARE PAYING BILLS BY WRITING CHECKS, OR PAYING BILLS WITH CASH.
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Use the Venn diagram below to help you compare and contrast the use of checks or cash when paying bills.
1. 1.
2. 2.
3. 3.
4. 4.
5. 5.
6. 6.
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Paying Bills with Cash Paying Bills with Checks
Cash Or Debit Card?
Is a debit card a good way for you to make purchases and pay bills?
Michael just opened a checking account. The bank offered him a debit card. It was easy. All he had to do was select a pin number and memorize it. The bank gave him a debit card that looks like a credit card. The one big difference is that to use a debit card, Michael needs to have money in his checking account. Michael is very happy with his new account and his new debit card. He has a choice now. He can use cash or he can use his debt card to buy goods and services.
He knows cash is accepted everywhere. When he uses cash, he knows exactly how much money he has in his pocket and how much he has spent. In this way it is easy for him to monitor his money and avoid overspending.
But it is not always convenient to carry large amounts of cash in your pocket. It is also not very safe to do so. If he has to pay his bills, he knows he can not mail cash. Also, cash can be easily lost or stolen.
Sometimes he uses his debit card to buy goods and services. He likes to use it because he feels that a debit card is more convenient and easy to carry. It takes hardly any space in his wallet. He also does not use it as freely as cash. He is very excited with his new debit card.
But he has to be careful. He may not know that sometimes people can use more money than that is in their account. This is called overdraw. The bank will charge you an overdraft fee. Another important step that Michael needs to remember is to always enter every debit card transaction in the check register so that he does not forget or make a mistake.
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INTERMEDIATE LOW TO ADVANCED – PREPARATION FOR ASSESSMENT TASK 5
GETTING READY TO WRITE – IN ASSESSMENT TASK 5, YOU WILL BE ASKED TO WRITE A LETTER TO THE BANK TO COMPLAIN ABOUT AN ERROR IN YOUR MONTHLY BANK STATEMENT. IN THE LETTER, YOU WILL STATE THE PROBLEM AND HOW IT CAN BE REMEDIED TO YOUR SATISFACTION. USE THE WRITING PROCESS TO WRITE YOUR LETTER.
1. PREWRITING – ORGANIZE YOUR IDEAS BEFORE YOU WRITE.
ANSWER THE FOLLOWING QUESTIONS TO ORGANIZE YOUR IDEAS.
1. Who at the bank should you send the letter to?_____________________________
2. What is the problem in your bank statement? For example, is the balance incorrect?
Was a debit subtracted from your account more that once? Was a service charge
applied unfairly to your account? What other problem might appear on your
statement?
_____________________________________________________________________
_____________________________________________________________________
3. What can the bank do to fix the problem? ___________________________________
_____________________________________________________________________
_____________________________________________________________________
4. What greeting will you use to start your letter? ________________________________
5. What closing will you use to end your letter? _________________________________
_______________________________________________________________________
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2. First Draft – Write your letter. Don’t worry about spelling or grammar yet. Prompt: You have just noticed an error in your monthly bank statement. Write a letter to the
appropriate bank staff member. State the problem and what you would like the bank to do to
do to remedy the problem to your satisfaction. __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________
__________________________________________________________________________ _______________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________
__________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________
__________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________
__________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________
__________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________
__________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________ 3. & 4. Editing – Find and correct any spelling or grammar mistakes you might have made in your first draft.
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5 STEPS OF THE WRITING PROCESS Step Description Strategies
Prewriting An activity that causes the writer to think about he subject. The writer organizes his thoughts before he begins to write.
Drawing Talking
Brainstorming Graphic organizers
Research Listing
Field Trips
Drafting The process of putting ideas down on paper. The focus is on content not mechanics
Taking notes, Organizing
thoughts into paragraphs,
Writing a first draft
Revising The process of refining the piece of writing. The writer adds to a writing piece. The writer reorganizes a piece of writing. The writer shares his story and gets input from peers or teacher.
Peer editing Conferencing Share Chair or Author’s Chair
Editing Mechanical, grammatical and spelling errors are fixed in the writing piece.
Checklists Rubrics
Editing Checklists Proofreading
Publishing The writing piece is prepared in final form, including illustrations. The writer shares his writing with others.
Reading aloud Reading to a group Displaying in the
room Printing the books Web publishing
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