Checking Account Project Resources
1. Checking Account Unit - Open the spreadsheet to complete your Checkbook Activity.
2. Monthly Transactions for Checking Account Unit - Use this to enter the transactions for your Checking Account. |
Additional Resources
The Mint Makes Perfect Cents -
Visit the online activities that focus on tracking your money and check writing. |
Managing a Checking Account
Personal Financial Literacy
Even though many people use debit cards and credit cards to make purchases, there are over 70 million checks written in
the United States each year. That is almost 20,000 checks every day! Checks, debit cards, and credit cards are
substitutes for cash. Credit cards are more like loans, but checks and debit card transactions come directly out of your
bank account. Knowing how to maintain a bank account can help prevent embarrassing and costly mistakes.
The answers to the above questions are important because they tell something about how people behave. They also provide insight on how people manage their money. You are probably like most other people; you write checks or use debit cards to access the money in your bank account. Checks and debit cards assist you in making purchases, paying bills, and carrying out other financial matters. Because both of these transactions are almost instant, it is very important to have the money in your account at the time you write that check or use that debit card.
In olden days, people used gold or silver coins to buy goods and services. There was no paper money, and there were no banks. People carried all of their money in a leather bag attached to a belt around their waist. Just imagine how heavy that would
be! What happened if you lost that bag or if someone robbed you? All of your money would be gone!
Checking Accounts
Today, people put money in banks instead of carrying cash in their pockets for many of the same reasons. It is not very safe or smart to carry too much cash. If lost or stolen, it is impossible to replace. Placing your money in a bank account (commonly called a checking account) is much more convenient and safer than carrying cash. Many banks offer free bank accounts for their customers, while some charge a fee for every check written or a flat monthly fee for a certain number of checks or ATM uses. Banking services are competitive, meaning different banks have different fees for different kinds of services; and those fees vary from bank to bank. As a customer, you should be familiar with the fees at your bank. If you are not satisfied with what it charges, you can ask about the other accounts it offers or talk to another bank. Almost all bank accounts come with a debit card.
Debit Cards
While debit cards are easy to use, remembering to write down every transaction can be hard to remember. Each time you use a debit card, you receive a receipt for that transactions. Keep that receipt in a safe place until you get home; then use it to record how much you removed from your account.
Conclusion
Learning the basics of managing a bank account is a great tool to build financial independence and meet your financial goals. Spending money on unnecessary fees and charges is expensive and can be easily avoided by practicing accepted money management skills. Most people get into trouble with overdrafts and hot check charges because they failed to keep accurate records or reconcile their checking account on a monthly basis. Starting good habits now will save you money for many years to come.
the United States each year. That is almost 20,000 checks every day! Checks, debit cards, and credit cards are
substitutes for cash. Credit cards are more like loans, but checks and debit card transactions come directly out of your
bank account. Knowing how to maintain a bank account can help prevent embarrassing and costly mistakes.
- Why do people write checks?
- Why are checks numbered?
- Why is it important to keep track of the checks they write?
- The same questions can be asked about debit cards, sometimes called ATM cards.
- Why do people choose to use the automated debit card instead of checks?
- What are the costs and benefits of writing checks or using debit cards?
The answers to the above questions are important because they tell something about how people behave. They also provide insight on how people manage their money. You are probably like most other people; you write checks or use debit cards to access the money in your bank account. Checks and debit cards assist you in making purchases, paying bills, and carrying out other financial matters. Because both of these transactions are almost instant, it is very important to have the money in your account at the time you write that check or use that debit card.
In olden days, people used gold or silver coins to buy goods and services. There was no paper money, and there were no banks. People carried all of their money in a leather bag attached to a belt around their waist. Just imagine how heavy that would
be! What happened if you lost that bag or if someone robbed you? All of your money would be gone!
Checking Accounts
Today, people put money in banks instead of carrying cash in their pockets for many of the same reasons. It is not very safe or smart to carry too much cash. If lost or stolen, it is impossible to replace. Placing your money in a bank account (commonly called a checking account) is much more convenient and safer than carrying cash. Many banks offer free bank accounts for their customers, while some charge a fee for every check written or a flat monthly fee for a certain number of checks or ATM uses. Banking services are competitive, meaning different banks have different fees for different kinds of services; and those fees vary from bank to bank. As a customer, you should be familiar with the fees at your bank. If you are not satisfied with what it charges, you can ask about the other accounts it offers or talk to another bank. Almost all bank accounts come with a debit card.
Debit Cards
While debit cards are easy to use, remembering to write down every transaction can be hard to remember. Each time you use a debit card, you receive a receipt for that transactions. Keep that receipt in a safe place until you get home; then use it to record how much you removed from your account.
Conclusion
Learning the basics of managing a bank account is a great tool to build financial independence and meet your financial goals. Spending money on unnecessary fees and charges is expensive and can be easily avoided by practicing accepted money management skills. Most people get into trouble with overdrafts and hot check charges because they failed to keep accurate records or reconcile their checking account on a monthly basis. Starting good habits now will save you money for many years to come.
Competencies and Standards Met
Personal Financial Literacy
Planning and Money Management
Overall Competency Organize personal finances and use a budget to manage cash flow. Standard 2: Develop a system for keeping and using financial records. |
Lesson Objectives
Personal Financial Literacy (Checkbook) Vocabulary
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