Managing a Checking Account - PowerPoint Presentation

Slide1

Managing a Checking Account

Learning Activity 4

4-1Slide2

Dishonored Checks (1 of 2)

Consequences

Service chargeBad credit ratingMandatory counselingAdded to dishonored check listSuspension of check cashing privilegesReprimand

4-

2Slide3

Dishonored Checks (2 of 2)

Consequences

Bad efficiency reportReduction in rankUCMJ actionBar to reenlistmentSeparation from Army

RETURNED

4-

3Slide4

29 Sep 20**

AAFES

200.00

Two Hundred and 00/100-----------------------------------------------------------

Bob Jones

DPP Payment

3

6

5

4

2

1

Personal Check

4-

4

2047

2047Slide5

CHECK

NUMBER

DATE

DESCRIPTION OF TRANSACTION

(-)

PAYMENT/DEBT

/

T

(-)

CHECK

FEE

IF ANY

(+)

DEPOSIT/CREDIT

BALANCE

REMEMBER TO RECORD AUTOMATIC PAYMENTS / DEPOSITS ON DATE AUTHORIZED

RECORD ALL CHARGES OR CREDITS THAT AFFECT YOUR ACCOUNT

2047

4/01

AAFES

DPP Payment

200

00

-200

00

957

64

757

64

1

6

5

4

3

2

Check Register

4-

5Slide6

Post

the following transaction in your checkbook register:

Enter a Debit Card ATM deposit for $25.00 on April 2nd and a Debit Card ATM withdrawal for $50.00 on April 4th.Post mid-month pay from LES ($584.82) dated 15 April 20XX.Write check #2048 for $20.00, dated 20 April 20XX, payable to the Commissary. Void check #2048. Write check #2049 for $25.00, dated 20 April 20XX, payable to the Commissary.

Enter a deposit for $50.00 that was mailed to the bank on April 22nd

Write

check #

2050

for $26.49, dated 30 April 20XX, payable to

Wal-Mart.

Post end-of-month pay from

LES (page 6 of handout)

($584.83) dated 30 April 20XX.

4-6

Check Register ExerciseSlide7

CHECK

NUMBER

DATE

DESCRIPTION OF TRANSACTION

(-)

PAYMENT/DEBT

/

T

(-)

CHECK

FEE

IF ANY

(+)

DEPOSIT/CREDIT

BALANCE

REMEMBER TO RECORD AUTOMATIC PAYMENTS / DEPOSITS ON DATE AUTHORIZED

RECORD ALL CHARGES OR CREDITS THAT AFFECT YOUR ACCOUNT

2047

4/01

AAFES

DPP Payment

200 00

-

200 00

957

64

757

64

Check Register

782

64

+

25 00

-

50 00

732

64

1,317

46

ATM

ATM

ATM Deposit

ATM Withdrawal

4/02

4/04

25 00

50 00

1,292

4

6

+584

82

Deposit Pay

4/15

584

8

2

2048

4/20

Commissary

VOID

0

00

-

25 00

2049

Commissary

4/20

25 00

1,317

46

4-

7Slide8

CHECK

NUMBER

DATE

DESCRIPTION OF TRANSACTION

(-)

PAYMENT/DEBT

/

T

(-)

CHECK

FEE

IF ANY

(+)

DEPOSIT/CREDIT

BALANCE

REMEMBER TO RECORD AUTOMATIC PAYMENTS / DEPOSITS ON DATE AUTHORIZED

RECORD ALL CHARGES OR CREDITS THAT AFFECT YOUR ACCOUNT

1,292

4

6

1,342

46

Check Register

1315 97

+584

-26

2050

Deposit Pay

Wal-Mart

4/30

4/30

584

83

83

26

49

49

+

50

Deposit

4/22

50

00

00

Deposit was mailed to the bank

1900 80

4-

8Slide9

Using Debit Cards

What is a debit card?

Why would I use a debit card?What is a PIN?How do debit cards work?How do I know where I used my debit card?

4-

9Slide10

Using Debit Cards (Continued)

How is a debit card different from a credit card?

Can I use my debit card to buy things online?What if I use all the money in my checking account?

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10Slide11

Using Debit Cards (Continued)

How do I choose a debit card?

How can I protect my debit card??How can I keep track of my money?

4-

11Slide12

Bank Statement

OLD POINT NATIONAL BANK

P.O. BOX 100YOUR TOWN, USA 00001BANK STATEMENTStatement as of: April 30, 20XX Total # of Debits: 5 Total # of Credits: 3SUMMARYBeginning Balance: $957.64Total Deposits: 1194.65Interest Earned: 5.25Total Withdrawals: 301.50Ending Balance: $1856.04

DEPOSIT DESCRIPTION

Date Transaction Amount

4/2 Customer Deposit 25.00

4/15 Payroll Deposit 584.82

4/30 Payroll Deposit 584.83

4/30 Interest 5.25

WITHDRAWAL DESCRIPTION

Date Transaction Amount

4/4 Customer Withdrawal 50.00

4/14 ATM 25.00

4/14 ATM Service Charge 1.50

Date Check # Amount

4/1 2048 200.00

4/25 2050 25.00

4-

12











Slide13

CHECK

NUMBER

DATE

DESCRIPTION OF TRANSACTION

(-)

PAYMENT/DEBT

/

T

(-)

CHECK

FEE

IF ANY

(+)

DEPOSIT/CREDIT

BALANCE

REMEMBER TO RECORD AUTOMATIC PAYMENTS / DEPOSITS ON DATE AUTHORIZED

RECORD ALL CHARGES OR CREDITS THAT AFFECT YOUR ACCOUNT

2048

4/01

AAFES

DPP Payment

200

-200

957

64

757

64

Check Register

782

64

+25

-50

732

64

1,317

46

ATM

ATM

ATM Deposit

ATM Withdrawal

4/02

4/04

25

50

1,292

4

6

+584

82

EFT

Deposit Pay

4/15

584

8

2

2049

4/20

Commissary

VOID

0

00

-25

2050

Commissary

4/20

25

1,317

46

4-

13Slide14

CHECK

NUMBER

DATE

DESCRIPTION OF TRANSACTION

(-)

PAYMENT/DEBT

/

T

(-)

CHECK

FEE

IF ANY

(+)

DEPOSIT/CREDIT

BALANCE

REMEMBER TO RECORD AUTOMATIC PAYMENTS / DEPOSITS ON DATE AUTHORIZED

RECORD ALL CHARGES OR CREDITS THAT AFFECT YOUR ACCOUNT

1,292

4

6

1,315

97

Check Register

1,900

80

+584

-26

1,875

80

1,874

30

2051

Deposit Pay

Wal-Mart

4/30

4/30

584

83

83

26

49

49

-25

-1

50

ATM

ATM

ATM Service Fee

ATM Withdrawal

4/14

4/14

25

1

50

4/30

Interest

5

25

1,879

55

25

+5

+

50

Deposit

4/22

50

00

00

1,342

4

6

Deposit was mailed to the bank

4-

14Slide15

$1856.04

$1906.04

$50.00

$26.49

$26.49

2051

$1879.55

$0.00

$1879.55

$50.00

4/22

4-

15Slide16

Online Banking

Can make managing finances easier and is very common now.

Some services offered:Access to accounts and transaction historyPaying bills online Transferring money between accounts Deposit checks by scanning checks Automatic paymentsPaperless statements

4-

16Slide17

Online Banking

Many people use online banking to effectively monitor their financial transactions and even link their accounts with financial software that helps them with budgeting.

NOTE: Always safeguard your username and password. It can be devastating if it gets in the wrong hands.4-

17Slide18

Check on Learning

4-

18Slide19

What must you do before you write checks or use your debit card on a new account?

Verify your pay was deposited in your new account by first reviewing your LES or checking your account

online

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19Slide20

Name three consequences that could happen to you if you write a bad check.

Separation

Barred from re-enlisting

UCMJ action

Reduced

in

rank

Bad

efficiency

report

Reprimand

Check

cashing privileges

suspended

Counseling

Bank

service

charges

Damaged reputation

Damaged

credit

report

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20Slide21

What must you always verify

before

you write a check?Verify you have enough money in your account to cover the amount of the check

4-

21Slide22

Why do you start the words of the amount of the check as far to the left as possible and draw a line after the cents all the way to the word “Dollars”?

For

security, so no one can alter the amount of the check

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22Slide23

What are the five types of transactions you must post to your check register?

Debit card

transactionsPersonal checks written by

you

Deposits

Withdrawals

(not by check

)

Adjustments

such as interest, ATM charges, etc.

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23Slide24

What is a PAT and give an example?

P

reAuthorized

T

ransactions

are reoccurring withdrawals you arrange to be automatically deducted from your account such as car payments, insurance payments, utility bill payments, etc.

4-

24Slide25

Why must you keep up with posting all transactions to your checking account?

So you don’t over draw your account.

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25Slide26

What is the bank form you use to reconcile your checkbook register to?

The checking account bank

statement

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26Slide27

What do you do with entries that are listed on your checkbook bank statement but are not in your checkbook register?

Verify the transaction and then post it to your checkbook

register

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27Slide28

What are some common errors associated with balancing a checkbook register?

Math errors, not posting entries to the register, and posting erroneous entries to the

register

4-

28Slide29

SUMMARY

Why Should I Care?Application of Core Values to Finances

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