Building: Knowledge, Security, Confidence Check It Out! All About Using and Writing Checks
What We Will Learn Today
Today we will learn how to use checks, write checks, and record checks in our check registers.
Checking Accounts When you open a checking account at the bank, you can write checks and use a debit card to:
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.
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
Better Money Management
Keep a record of “transactions”
Build a positive relationship with your bank
Having a checking account lets you:
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
A Check Register
How To Write A Check http://www.moneyinstructor.com/in/inwritecheck.asp http://www.moneyinstructor.com/in/inwritecheck.asp
Sample Check 1 3 8 6 4 5 10 9 2 7 1: Today’s date 2. Payee 3. Amount in numbers 4. Amount in words 5. Reminder 6. Your signature 7. Your name & address 8. Check # 9. Name of your bank 10. Your checking account number
Sample Checks 2/26/20XX Best Tees 19.75 Your signature shirt Nineteen and 75/100
Activity: Writing A Check Complete Activity
Follow directions to complete this activity
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”
Endorsing a Check DO NOT WRITE, STAMP OR SIGN BELOW THIS LINE RESERVED FOR FINANCIAL INSTITUTION USE * ENDORSE HERE
Check Writing Tips
Write in blue or black ink.
Remember to record each check you write in your check register.
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.
Your Check Register
Use your check register to keep
an accurate record of all your
checking account transactions
Checks & ATM transactions
Other bank charges
http://www.moneyinstructor.com/in/incheckbook.asp How to Use a Check Register
Let’s Practice Using a Check Register
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 .
Checking Account Statement
Checks you wrote
Withdrawals and deposits
Debit card purchases
Each month your bank will send you an account statement:
“ 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.
“ Bad” or NSF Check
A check you write when there isn’t enough money in your checking account to cover it