Transcript PowerPoint
Checking
Accounts
What Kind of Spender are You?
Take the Spending Challenge!
U.S. Mint Video
2
Federal Reserve Cont.
3
The Federal Reserve
Created 1913
Goal: Economic stability
Monetary Policy
– Influences growth of money/credit
Bank for banks
– Payroll, large payments, provide cash
Bank for govt.
– Taxes go here to pay for military payrolls & SS
Supervisor/regulator of banks
– Oversee institutions
4
The Role of Banks
(private entities)
Banks are in business to earn a profit
– Interest charged for lending
– Interest depositors paid lower than interest
bank charges = income
Banks provide security
– Protect your money’s purchasing power
– Banks are regulated
5
The Role of Banks
Cont.
FDIC (Federal Deposit Insurance Corp)
Insures maximum $250,000
Money and financial transactions
– Barter
Trading
good and services without using
money
Work only if you have something the other
person wants
Internet: What is FDIC and Purpose
6
10-J History of the
Federal Reserve Bank of
Kansas City
http://www.kc.frb.org
7
Types of Money
Currency
– paper money & coin
Check
– order bank to pay sum to person
named on check (payee)
8
The New Color Of Money
2006
2008
2004
2003
9
Did you know…
Susan B. Anthony $1 coin replaced by Golden
Dollar in 2000
$100,000 largest note produced
– December, 1934 - January, 1935
– Used for transactions btn FRB
– Not circulated to general public
$100 note is largest denomination currently
issued in United States
“In God We Trust”
– Didn't appear on U.S. Federal Reserve Notes until
Series 1963 currency.
10
Checking Acct video –
new one
11
Advantages of Using Checks
Safety
– Lost or stolen
– Replaced – cash can’t!
Convenience
– Large purchases
– Safer to send through mail than cash
Records of your transactions
– Check
– Bank sends statement
Written record of all transactions
12
Checking Acct. Types
Basic
Checking
Money
Free
Market
Checking
Senior/
Interest
Student
Bearing
Joint
Lifeline
Checking
Express
13
Checking Account Costs
Checking account fees
– Maintenance fee
Flat fee to cover cost of maintaining acct.
No matter how many checks you write
– Service Charge
Charge for each check you write
14
Your Checking Account
Open a checking account
– 18 or older
Signature card
Hand out voc. sheet
15
Deposits
Deposit form
Record your deposit
16
Parts of a Check
Check Number
Drawer
Payee
Date written
Steven H. Williams
3456 Willow Road
Maryville, MO 64468
(660) 562-3234
Amt in
figures
Written
Amt
Nodaway Valley Bank
Main Street
Maryville, MO 64468
(660) 562-0000
:5434564436
Drawee
433567
342
Purpose of check
Acct/Routing Numbers
Drawer’s Signature
17
Writing a Check
Parts of a check
– Use ink
– Numerical amount vs. handwritten amount
– How to fill one out
18
Endorsements
Blank
– Your name
Restrictive
– Restricts use
– “For Deposit Only”
Special
– Transfer ownership
19
Check Register and other info
Record checks in check register
–
–
–
–
Record each transaction
Record interest
Calculate your new balance
Record check numbers
Overdrawn
Stop payment
Void
Post-dated
20
Your Bank Statement
“Reconciliation”
Monthly statement
– Transactions (deposits/wd)
– Bank fees
Balancing or reconciling your account
Confirm transactions
21
Account Reconciliation
Make adjustments
– Record any maintenance fees/interest
earned in check register!
What if the bank made an error?
File your records
– Canceled checks proof of transaction
– Make get back or copy of
23
Do Checking Simulation 1
24
Identity Theft
Social Security
• Keep confidential
Number
Tips
See flier & booklet
• Don’t make it easy to get your number
• Don’t give it to anyone
• Don’t carry your SS card with you
• Report immediately Federal Trade
Commission
Video & make flier
25
Uses of Electronic Funds
Direct deposit
Automatic Payment
ATM
Point of Sale Transaction
Stored-value cards
Prepaid cards
Debit Card
Cyberbanking
26
Automated Teller Machines
(ATMs)
EFT: electronic funds transfer
Your ATM card and PIN
ATM transactions – savings/checking
– ATM deposit
– ATM withdrawal
Fees
Use ATMs responsibly
27
Act: Understanding ATM Fees Internet Search
Consumer Protection
and Responsibilities
Electronic Fund
Transfer Act
(EFTA)
• Requires banks to inform customers
of fees
• Offer receipt
• If lose card, must report 2 days lose up to $50 max
• If after 2 days, max. $500
• After 60, you responsible for all loss
28
Different Checks for
Different Purposes
Certified checks
Cashier’s checks
Money orders
Traveler’s checks
29
Make fliers of different types
Certified Check
Personal check signed and stamped by bank
Guaranteed to have enough money in account
to cover check
Written to specific payee
Low risk
Fee: $5-$20
EX: buying 1st house or automobile
Taken out of your account & no longer have
access to
30
31
Cashier’s Check
Bank’s OWN personal check singed by the
bank
Request amount then pay bank and small
service charge
Fee approx. $25
Sometimes called bank money order or
treasurer’s check
Do not need to have checking account
EX: buying 1st house or other property
32
33
Money Order
Check that draws on money of bank or other
financial institution that issued it
Different than cashiers
– Companies, not just banks, issue
– Your name, not the bank, appears on check
Fee: $1-$10
Ex: utility payment, phone bill
34
35
Traveler's Check
Form of payment often bought before going
on trip
– $20, $50, $100, and $500 denominations
Signed twice before being cashed
Safer to use when traveling than cash or
personal check
Never expire
Fee: 1% of amount of checks
Can be replaced if lost or stolen
36
Other Services
Wire transfers
–
–
–
–
–
Electronic communication
Moves money from one acct to another
Large sums of money
Emergencies
Fee: $20-$40
Safe deposit boxes
–
–
–
–
Individual boxes you rent from bank
Store valuables (car titles, birth certificate)
Fee: $30-$40 year
ID, sign, and have your key and obtain bank’s key to access
37
Do checking simulation 2 and WB, QZ, Review, Test