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Building: Knowledge, Security, Confidence

Check It Out!All About Using and Writing Checks

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What We Will Learn Today

• Today we will learn how to use checks, write checks, and record checks in our check registers.

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Checking Accounts

When you open a checking account at the bank, you can write checks and use a debit card to:

• Pay bills

• Make purchases

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What is a Check?

• A check is a written contract between you and your bank.

• When you write a check, you are asking the bank to take money from your account and give it to someone else.

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Using a Checking Account is Convenient

• Gives you quick and easy access to your money

• Lets you “direct-deposit” payroll and other checks

• Eliminates the need to carry a lot of cash

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Better Money Management

• Keep a record of “transactions”

• Build a positive relationship with your bank

Having a checking account lets you:

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Steps to Writing a Check

Make sure you have

enough money in your

account!

1. Write the check

2. Record the transaction

in your check register

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Your Checkbook

Contains:

• Checks

• A Check Register

• Deposit slips

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How To Write A Check

http://www.moneyinstructor.com/in/

inwritecheck.asp

http://www.moneyinstructor.com/in/

inwritecheck.asp

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Sample Check

1 38

64 5

10 9

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1: Today’s date2. Payee3. Amount in numbers4. Amount in words5. Reminder6. Your signature7. Your name & address8. Check #9. Name of your bank10. Your checking account number

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Sample Checks

2/26/20XX

Best Tees 19.75Nineteen and 75/100

Your signatureshirt

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Activity: Writing A Check

Complete Activity

– Follow directions to complete this activity

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You can also use a check to get cash out of your checking account. • Write “CASH” or your name in the “Pay to the Order of” area on your check. • But, be careful! A check you write out to cash can easily be cashed by anyone!

Checks Made Out to “Cash”

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Endorsing a Check

DO NOT WRITE, STAMP OR SIGN BELOW THIS LINERESERVED FOR FINANCIAL INSTITUTION USE *

ENDORSE HERE

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Check Writing Tips

Write in blue or black ink. Write clearly. Remember to record each check you write in your check register.

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What if you make a mistake?

If you make a small mistake when writing a check, cross out the incorrect information, write your initials above it, and then write the correct information.

If you make a big mistake when writing a check, write “VOID” across the entire check, rip it up, or shred it, and throw it away. Write a new check.

Remember to entire all checks – even VOIDED checks – in your check register.

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Your Check Register

Use your check register to keep

an accurate record of all your

checking account transactions

including:– Checks & ATM transactions– Interest – Other bank charges

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http://www.moneyinstructor.com/in/

incheckbook.asp

How to Use a Check Register

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Let’s Practice Using a Check Register

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Words to Remember

Payee:  The party that receives the check. 

Payor:  The party that writes the check (to the payee). 

Check Register:  A booklet that is used to keep a record of all your checking related transactions, including checks written and deposits.

 Endorse a Check:  When the payee signs their name on the back of a check to cash or deposit the check.

 Balance:  The amount of money currently in your checking account.

 Overdraft or Non-sufficient Funds:  When you write a check for

more money than you have in your account.

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Checking Account Statement

• Checks you wrote

• Withdrawals and deposits

• Debit card purchases

• Bank fees

Each month your bank will send you an account statement:

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“Reconciling” Your Account

Banks can make mistakes!

You should reconcile your check register with

your monthly checking account statement each

and every month to make sure your

balance is correct.

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“Bad” or NSF Check

• A check you write when there isn’t enough money in your checking account to cover it

• Also called a “bounced check”

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Consequences of Writing Bad Checks

• Bad check fees

• Bank closes your account

• Merchants may not accept your checks

• Your credit will be impacted

• Maybe jail!

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Check It Out!

• The benefits of using a checking account• How to write a check• How to use a check register• Why you should not write a “bad” check

Congratulations! Today we have learned:

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Thank you!Thank you!

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