high school financial planning program lesson 5-1...

0

Lesson 5-1: Checking AccountsHigh School Financial Planning Program

©2014 NEFE High School Financial Planning Program | www.hsfpp.org

Display this slide lesson to introduce the lesson.

1

High School Financial Planning Program Lesson 5-1: Checking Accounts


Give students a two- or three-minute time limit to brainstorm as a class the different

ways they could shop and pay for a new music. Create two columns on the

black/whiteboard, one for “shop” and one for “purchase.” Document the lists

students create. Prompt students so brainstorming lasts the full two or three minutes.

If they start running out of ideas halfway through, encourage them to think of places

to buy used items. (from a friend, yard sale, discount store, library sale, online, etc.)

EXTENSION: Follow-up by polling students to see how many of these different places to

shop and payment methods they have used themselves. This will help give you a sense of

previous experience, potential classroom “experts,” and which security/fraud topics you

should cover later in the Module.

2



Preview the Learning Outcomes in the Student Learning Plan. By the end of this

lesson, the students should be able to demonstrate how to use a checking account.

3



Pages 3-4

Introduce Jason and Brianna as the young people featured in the Student Guide. The

students will follow Jason and Brianna as they learn about using financial services to

handle their payments.

4



Student Guide, pages 4-7

Use the information on pages 4-5 to discuss reasons people might choose to pay for

goods and services in ways other than using cash. Use this to transition into the

benefits and potential negatives of using a checking account for purchases (page 6).

Explain that checking accounts are considered types of demand deposit accounts

because the account funds are accessible to the customer without any advance

notice to the bank or credit union.

Either as a whole class or in small groups, have the students brainstorm responses to

Activity 5.1: Proof of Payment.

5




Explain that when a person writes a check or makes an electronic payment with

checking account funds, s/he is ordering the bank or credit union to immediately

transfer funds to someone else. When the check is signed or debit card used, the

payer (owner of the checking account) enters into a contract to agree to pay the

designated amount when the payee (person receiving payment) deposits the check or

accepts the electronic payment.

Revisit responses from the opening activity to point out that many checking account

payments are made electronically, whether online, by phone, or with a debit card.

However, there will be occasions when someone may need or choose to pay with a

paper check. Use the slide and information on pages 8 and 10 to point out the

information that is displayed on every check. Stress that a check needs to be filled

out clearly, accurately, and in permanent ink to avoid any opportunities to

misinterpret data or to prevent fraud. Use Activity 5.2: Check Writing 101 for

students to practice writing checks. [An example of the completed activity are shown

on the next slide.]

6



Student Guide, page 9

Use Activity 5.2: Check Writing 101 for students to practice writing checks. An

example of the completed activity are shown on this slide.

ALTERNATE ACTIVITY: Arrange for the students to complete the Check Writing tutorial on

the Goodwill Community Foundation education website,

www.gcflearnfree.org/moneybasics/6. Additional tutorials are available on this site for

additional practice.

7




Remind the students that they need to have sufficient funds in their checking

accounts to have money available for payments. A checking account is not like a

credit card account. Rather, they will need to ensure that they deposit enough money

into their accounts to have money available to pay on demand, whether by check or a

debit card. Use the slide to illustrate how to fill out a deposit slip. In some cases of

making a deposit at an ATM, a deposit ticket might not be needed. Regardless, point

out that every deposit will require the depositor to designate the account receiving the

funds and the amount when making a deposit.

Use Activity 5.3: Make the Deposit so students practice filling out a deposit slip.

8




Show examples of endorsements that are written on the back side of a check, behind

the “Pay to the Order of” phrase written on the front side of the check. Point out that

the bank receiving the endorsed check will match the endorsement with the

designated payee on the front of the check.

9



Student Guide, pages 14-16, 18-19

Read about the problem Jason had keeping track of his checking account transactions.

(Student Guide, pages 14-16). Stress that an account holder is responsible for keeping track

of how much money is really available in the checking account. Demonstrate how to keep track

of payments from and payments to a checking account as you record Jason’s transactions.

Note that his ending balance is different from the bank’s ending balance because he recorded

the $25 check payment which was not accepted by the bank. Arrange for the students to

practice tracking checking account transactions as they complete Activity 5.4: Keeping Track.

Slide 11 shows a sample answer key.

Note: Point out examples of codes often used by individuals or banking institutions to

describe the transaction type. The codes used in this slide example are included in the list

below. However, individuals might choose to create their own coding system based on

personal preferences and what seems logical for their own record keeping habits and what is

used by their banking institution.

d/c = debit card payment [#] = check number

fee = banking institution fee ACH w/d = automatic clearing house withdrawal

w/d = withdrawal POS w/d = point-of-sale withdrawal

dep = deposit ATM = automated teller machine transaction

10




Arrange for the students to practice tracking checking account transactions as they

complete Activity 5.4: Keeping Track. This slide shows a sample answer key.

11



For additional practice, arrange for students to work independently or in pairs to

complete the Balance Zoe’s Bucks task. This slide shows a sample answer key.

12




Point out the value in comparing your checking account records with the bank

information. Explain how to reconcile an account as a way to compare the bank

statement with an individual’s records. Stress the importance of routinely reconciling

each account—at least once a month—to ensure that account records are complete

and accurate.

Have the students complete Activity 5.5: Does it Balance? to verify Jason’s account

balance.

13



This is a good time to provide tips to find math errors when reconciled amounts don’t

match.

14




Assign the students to independently complete Challenge 5-A: Use a Checking

Account.

EXTENSION: Have students create fictitious checking accounts that track deposits and

withdrawals for two weeks’ time. Tell the students to balance their own checking account

records. Then instruct students to become a two-person team in a financial relationship

(roommates, married, parent and teen, business partnership, etc.) and balance the joint

checking account.

15



Ask the students to reflect on their preferred method of payment and give reasons for

their preference.

16



high school financial planning program lesson 5-1...

Documents