Money & Banking

What is a Checking Account?

A checking account gives you a way to:

1. manage

2. store

3. spendyour money

•A Check gives you proof you paid someone.•It’s a bad idea to send cash in the mail – you have no proof•Many banks will charge you to cash a check if you don’t have an account with them•Some banks charge fees for checking, look for banks that don’t

You can use Checks instead of cash to pay bills.a

You can also use debit cards(Check cards)a

or ATM to access your cash

A check is a promise to pay

Jaycee writes a check to pay Jacob what she owes him for fixing her car.

Jacob, takes the check to his bank, and they give him money. (Good Money Bank)

Good Money Bank sends the check to First Kids bank (Jaycee’s bank) and asks for to be paid back.

Kid’s bank takes the money out of Jaycee’s account and sends it to Jacob’s bank.

How to write a checkJaycee Kircher      

1101

Arkansaw, WI 547 20  

   

Pay to the order of     $  

  DOLLARS  

Kids Bank $$$  

MEMO              

   

091808347   545 529 1101            

April 25

2013

Jacob Gullickson

20 00Twenty and 00/100

-----------------------------------Car repairs

Jaycee Kircher

Number Date Transaction Withdrawal ü Deposit

$ 100.00

 1101 4/26/13 Jacob Gullickson  2000                                                                                                                                                                                                                                                                   

Number Date Transaction Withdrawal ü Deposit $ 100.00

1101 4/25/13 Jacob Gullickson 2000       80.00     car repairs                                                                                                                                                                                                                                                                                            

Number Date Transaction Withdrawal ü Deposit $ 100.00

1101 4/25/13 Jacob Gullickson 2000       80.00     car repairs              4/27/13 Paycheck       50000                                                                                                                                                                                                                                                                 

Number Date Transaction Withdrawal ü Deposit $ 100.00

1101 4/25/13 Jacob Gullickson 2000       80.00     car repairs              4/27/13 Paycheck       50000 580.00                                                                                                                                                                                                                                                                

Number Date Transaction Withdrawal ü Deposit $ 100.00

1101 4/1/13 Jacob Gullickson 2000       80.00     car repairs              4/27/13 Paycheck       50000 580.00                  Bank 4/28/13 Ford Motor Credit 20000            car loan                                                                                                                                                                                                                        

Number Date Transaction Withdrawal ü Deposit $ 100.00

1101 4/26/13 Jacob Gullickson 2000       80.00

    car repairs            

  4/27/13 Paycheck       50000 580.00

                 

Bank 4/28/13 Ford Motor Credit 20000       380.00

    car loan            

1102 4/28/13 EconoFoods 8000       300.00

    groceries            

CkCd 4/29/13 Carmike Cinemas 5000       250.00

    movies            

                 

                 

                 

                 

                 

                 

                 

                 

What is a Debit Card?

What else is a Debit Card? It can also be known as an ATM card

ATM stands for Automatic Teller Machine (like visiting the bank, but instead of a person (teller) there is a machine working for you.At an ATM you can get cash from your checking account – it is subtracted just like a check.

Sometimes if you use an ATM that doesn’t belong to your bank – the other bank will charge you a fee to use the machine.

Number Date Transaction Withdrawal ü Deposit $ 100.00

1101 4/26/13 Jacob Gullickson 2000       80.00     car repairs              4/27/13 Paycheck       50000 580.00                  Bank 4/28/13 Ford Motor Credit 20000       380.00     car loan            

1102 4/28/13 EconoFoods 8000       300.00     groceries            CkCd 4/29/13 Carmike Cinemas 5000       250.00     movies            

1103 4/30/13 Xcel Energy 10000       150.00     electric bill                                                                                                                                                    

Kids Bank $$$Durand, WI 54736

Jaycee KircherArkansaw, WI 54721

Account # 1234Previous Balance $ 100.00 1 Deposit/Credit 500.00 4 Checks/Debits 350.00 Ending Balance $ 250.00

Deposits & Additions4/27 Regular Deposit 500.00

Checks & Withdrawals4/28 Ford Motor Credit 200.00 4/29 Carmike Cinemas 50.00

Checks in Serial Order #4/27 1101 20.00 4/30 1102 80.00

   

  Balance per bank Statement $  

   

  minus outstanding checks  

  # $______  

  #_____ $______  

  #_____ $______  

   

  total $______ - $______  

   

   

  plus outstanding deposits  

  Date Amount  

  ______ ______  

  ______ ______  

   

  total $ +   

   

   

  balance on check register $  

             

250.00

1103 100.00

100.00 100.00

150.00

Like What????

Setting Aside money for future Occurrences

What is Savings?

What do you do with Savings?

Something you WANT Things you don’t Expect

How do you Save?

Extra jobs Gifts A plan to save A Budget

Where does the money to save come from?

What is Interest?

You put $100 in a savings account, the bank pays you interest for every day they hold your money.

They pay interest of 3.65%

Then the bank loans, that $100 to a different customer at a higher rate.

$100.00 3.65% 1¢/day $3.65/year

$100.00 10.95% 3¢/day $10.95/year

$10.95- $3.65 = $7.30 the money the bank makes

Think Bigger!

$20,000 3.65% $ 730.00 /year

$20,000 10.95% $ 2,190.00 /year

Presentation created by Laura Gullickson, CPADurand, WI