Learning Activity 5 5 1 Dishonored Checks 1 of 2 Consequences Service charge Bad credit rating Mandatory counseling Added to dishonored check list Suspension of check cashing privileges ID: 753459
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Slide1
Managing a Checking Account
Learning Activity 5
5-1Slide2
Dishonored Checks (1 of 2)
Consequences
Service chargeBad credit ratingMandatory counselingAdded to dishonored check listSuspension of check cashing privilegesReprimand
5-
2Slide3
Dishonored Checks (2 of 2)
Consequences
Bad efficiency reportReduction in rankUCMJ actionBar to reenlistmentSeparation from Army
RETURNED
5-
3Slide4
Writing a Personal Check
01/01/20XX
#1Phone Company Name
#2
100.00
#3
One Hundred and 00/100 ----------------------
#4
#5
January Phone Bill
#6
Your Signature
5-4Slide5
Writing a Personal Check (Cont.)
VOID
5-5Slide6
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
5-
6Slide7
Using Debit Cards
What is a debit card?
Issued by your bankLinked to your bank accountWhy use a debit card?Purchases without cashImmediate money transfer
What is a PIN?
Personal Identification Number
Remember it, but don’t share it
!
5-
7Slide8
Using Debit Cards
(Cont.)
How do I know where I used my card? Check your statementsKeep a registerCan I use my debit card to buy things online?Shop with caution What if I use all the money in my checking account?
Keep track of your account balance
Utilize overdraft protection
5-
8Slide9
Using Debit Cards
(Cont.)
How do I choose a debit card?Compare services and feesHow can I protect my debit card?Never share your PIN!Sign up for banking alerts if offered
Limit using your card online
How can I keep track of my money?
Track transactions on register
Create and use your monthly spending plan
5-
9Slide10
Debit Cards vs. Credit Cards
Debit Cards
Credit CardsLinked to personal bank account Linked to financial institution that issued card
Money
withdrawn immediately
Institution
pays merchant, you now owe the institution
Used
to withdraw funds from ATM’s
Often
requires annual fee to use
Spending
limit depends on amount of money available in account
Issuer sets the
credit limit
No interest charged because no money is borrowed
If bill
is not paid in full, interest is charged on outstanding balance
5-10Slide11
Bank Statements
Understanding the statements you receive from your bank can help you maintain accurate financial records. Regularly reviewing your bank statement can help you:Track your spendingDetect errors
Monitor any fees being accumulatedIdentify fraudulent charges5-11Slide12
Bank Statement
5-
12Slide13
Bank Statement
(Cont.)
Should match checkbook register balance!
5-13Slide14
Online Banking
Ability to manage finances easily through financial institution’s website or mobile application
Services Offered:Instant account accessOnline bill-payMoney transfersMobile deposit of checksAutomatic bill payPaperless statementsNote:
Always
safeguard your username and password. It can be devastating if it gets into the wrong hands.
5-
14Slide15
LSA 5 Check on Learning
5-
15Slide16
Q1.
What must you do before you write checks or use your debit card on a new account?
A1. Verify your pay was deposited in your new account by first reviewing your LES or checking your account online
5-
16
LSA 5 Check on LearningSlide17
Q2.
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
5-
17
LSA 5 Check on Learning (Cont.)Slide18
Q3.
What must you always verify
before you write a check?A3. Verify you have enough money in your account to cover the amount of the check
5-
18
LSA 5 Check on Learning (Cont.)Slide19
Q4.
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”?
A4. For security, so no one can alter the amount of the check
5-
19
LSA 5 Check on Learning (Cont.)Slide20
Q5.
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.
5-
20
LSA 5 Check on Learning (Cont.)Slide21
Q6.
What is a PAT and give an example?
A6. Pre
A
uthorized
T
ransactions are reoccurring withdrawals you arrange to be automatically deducted from your account such as car payments, insurance payments, utility bill payments, etc.
5-
21
LSA 5 Check on Learning (Cont.)Slide22
Q7.
Why must you keep up with posting all transactions to your checking account?
A7. Therefore, you don’t over draw your account.
5-
22
LSA 5 Check on Learning (Cont.)Slide23
Q8.
What is the bank form you use to reconcile your checkbook register to?
A8. Your Bank Statement
5-
23
LSA 5 Check on Learning (Cont.)Slide24
LSA 5 Summary
Why Should I Care?
Application of Core Values to Finances5-
24