Kentucky Core Content
Financial Management practices (e.g. maintaining bank accounts,
budgeting, saving, using credit cards wisely, financing large purchases) are
methods of achieving short and
long-term goals.
Checking Account Definition:
An account that allows
CHECK
Written order to a bank to pay the
stated amount to the person or
Advantages of a Checking Account
Provides a Convenient way to pay your
bills.
Safer than using Cash and handling your
money.
Built-in Proof of Payment (record
keeping) system that you can use to track
Opening a Checking Account:
Fill out and sign a Signature Card
– Purpose of a Signature Card - provides an
official signature that the bank can compare to the signature you write on your checks.
– Use your full name (nicknames should be avoided)
Make a deposit
Parts of a check (10: A—J)
A. Check number
B. ABA number (fraction form): top half – identifies the location and district of the bank from which the check is drawn;
bottom half – routes the check to the
specific area & bank on which the check is
drawn.
D. Date
E. Payee – person or company to whom a check is made payable
F. Numeric amount – the amount of dollars
and cents being paid, written in figures.
G. Written amount – the amount of dollars and cents being paid, written in words.
H. Drawer or Maker – person allowed to write checks on the account (person who opened the account).
I. Account Number – bank’s identification
number; checking account number; and the
check number.
J. Memo – purpose of the check
Parts of a Check Kris Garza 541 Crestwood Avenue Norman, Oklahoma 73070-5549 555-1212 April 13, 20- 101 86-171 1031 Pay to the
Order of Jeans and Me, Ltd. $15.95 DOLLARS
Second National Bank Norman, Oklahoma
:103101712: 101 “16487214:”
FOR Kris Garza
Fifteen and 95/100
Jeans
Drawer/Maker Date Check
Check Writing Tips
1. Always use a pen 2. Write legibly
3. Sign your name as you did on your signature card
4. When you make a mistake, void (cancel) the check and write a new one. To cancel a check, write the word
VOID in large letters across the face of the check. Save the voided checks for your records
Deposit Ticket/Slip Definition:
Forms that allow you to
put money into your
Making a Deposit
1. Fill in the Current Date
2. In the Cash Section: Write the total
amount of Currency (paper money) and coins you are depositing
3. In the Checks Section: List any checks
you are depositing with ABA number and Amount of each check individually.
Continued…..
5. If you would like cash at the time of the
deposit, fill in the desired amount on the “Less Cash Received” line
6. Subtract the cash received from the
subtotal or total deposit and write the
final amount of the deposit on the “Net
Deposit” line.
Endorsing Checks:
Blank Endorsement
Restrictive Endorsement
Special Endorsement
Blank Endorsement
Endorsement that
only has the Payee’s name
Sign your name on
the top of the back of the check.
Do not write below this line
Restrictive Endorsement
Endorsement that
restricts the check “FOR DEPOSIT ONLY”
Check can only be
deposited into your account, makes it very safe.
Do not write below this line
Endorsement in Full (Special)
Endorsement used to
transfer a check from one person to another.
Both names must be
on the back.
Do not write below this line
Pay to the Order of Mary Griffith
Check Register Definition:
A booklet provided by your
bank for recording your
Guidelines for a Check Register
1 Record the Current Amount in your Account at the top of the “Balance Column”
2.As soon as you write a check or make a deposit, record it in the register.
3.Write check number. If the transaction is not a check, draw a slash or dash.
Guidelines (continued)
6. Enter the amount of check, withdrawal, or service charge in the “Amount of Payment” column. If the transaction is a deposit, write the amount in the “Amount of Deposit” column 7. Subtract “Amount of Payment” column; Add
“Amount of Deposit” column.
Reconciling Your Checking Account
Definition:
Compare the check register to the
bank statement & get them to equal
Other Banking Services
Debit Card Purchases/Credit
ATM Cash Withdrawals
Pay by Phone or Internet Payments
Transfers: Wire or ATM
Pre-Authorized Payments
Stop Payment Orders
