account statement. These deposits will not appear on the statement.
Ask students …
Point this out on the slide.
Give students time to write in the amounts
In our example, are there any deposits in our check register that do not appear on the checking account statement?
Answer: Yes. The $30 deposit made on March 22 and the $50 deposit made on March 23.
Write these deposits on the area of the Checking Account Reconciliation Form called “Add deposits outstanding.” There is space to write each deposit.
Point this out on the slide.
The next thing we need to do is add three amounts:
• The total we got when we subtracted $25.00 from
$75.25, or $50.25.
• The two deposits.
Ask students …
Give students time to make this entry.
What is the sum of $50.25 + $50.00 + $30.00?
Answer: $130.25
We need to add the amount we get from this addition to the area of the Checking Account Reconciliation Form called “Balance.”
Hand out the Completed Practice Check Register to students.
This answer equals the balance in our checkbook register. We have successfully reconciled our checking account.
Here is a copy of the completed check register that you can take home with you.
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KEEPING AN ACCURATE RECORD OF CHECKING ACCOUNT ACTIVITY (Continued)
You also have instructions on how to reconcile your checking account on page 19 of your Participant Guide.
Ask students …
Do you have any questions about how we reconciled our checking account?
How to Report Errors, Change Your Address, and Close Your Account
.
Refer students to How to Report Errors, Change Your Address, and Close Your Account on page 20 of their Participant Guide.
If you find errors on your bank statement, call, write, or go to your bank to have the error corrected.
After reporting the error, it is a good idea to follow up by writing a letter. Keep a copy of the letter for your
records. The letter should include:
• Your name.
Describe what to do if an error is found on the checking account statement.
• Your account number.
• An explanation and the dollar amount of the error.
• The date the error occurred.
The bank must receive notice of the error no later than 60 days after the date of the statement.
Describe how to inform the
bank of a change of address. If your address changes, you can complete and return the “change of address” form on the back of your checking account statement or you can call your bank.
Describe what to do before
closing a checking account. If you decide to close your checking account, make sure that all the checks you have written have been cashed before you close it.
“Bad Checks”
42: Bad or NSF Checks Remind students of the importance of keeping an accurate checking account balance.
I cannot stress enough how important it is to keep an accurate balance in your checkbook.
If you write a check without enough money in your account to cover the check, it is known as writing a bad check or bouncing a check.
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Instructor Notes Presentation
KEEPING AN ACCURATE RECORD OF CHECKING ACCOUNT ACTIVITY (Continued)
43: Consequences of Writing Bad Checks
Explain the consequences of writing bad checks.
Writing bad checks can have very serious consequences for you:
• Each bad check might cost you a fee of as much as
$30.
• Additional checks you have written might not get paid.
• This negative activity can be reported to an account verification company such as ChexSystems or TeleCheck. This can make it difficult to cash or write checks and to open an account in the future.
• Your bank can close your account and send a negative report to the credit bureaus, and the amount of the overdraft and fees might be reported to a collection bureau.
• Knowingly writing a bad check, or doing so with fraudulent intent, is a crime in every state. Each state has different civil and criminal penalties, such as fines and jail time. For this reason, if you ever do mistakenly write a bad check, you should correct it as soon as possible.
Overdraft Protection
We have already talked about overdraft and bounce protection.
Refer students to Overdraft Protection on page 21 of their Participant Guide.
Describe overdraft and bounce protection.
• Many financial institutions offer “courtesy overdraft protection” or “bounce protection” plans so that your checks do not bounce and you do not overdraw your account.
• With these plans, you will avoid the merchant’s returned check fee, but you still will have to pay the financial institution an overdraft fee or a bounce protection fee for each item.
• Also remember that, unlike an overdraft line of credit, with bounce protection there is no guarantee that your bank will cover your checks, ATM
withdrawals, and debit card and other electronic transactions that overdraw your account.
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Instructor Notes Presentation
KEEPING AN ACCURATE RECORD OF CHECKING ACCOUNT ACTIVITY (Continued)
Describe the concept of linking a checking account to a savings account or credit card.
You may also be able to have your checking account linked to a credit card or your savings account. When you do not have enough money in your account to cover an item, money is taken from the credit card or savings account to cover it.
Ask your bank’s customer service representative for more information.
Remind students of the consequences of modern technology.
Finally, with modern technology your check may clear immediately. Make sure you have enough money in your account to cover that check.
Ask students …
Do you have any final questions?
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Instructor Notes Presentation