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Transcript of Objectives: 1.Explain the purpose of checking and saving accounts. 2.Prepare checks and maintain a...
Objectives:
1.Explain the purpose of checking and saving accounts.
2.Prepare checks and maintain a checkbook register.
Warm Up:
Record any expenditures since last class in your November budget.
Agenda:
1.Warm Up2.Finish grocery store activity3.Ch.5 Vocab.4.Video
Daily Information (c,h) Nov.10
Objectives:
1.Explain the purpose of checking and saving accounts.
2.Prepare checks and maintain a checkbook register.
Warm Up:
Why do people put money in a checking or savings account?
*Record expenditures
*Partner activity (withdrawals)
Agenda:
1.Warm Up2.Ch.5 Vocab.3.Banking P.P.4.Student notes5.Balancing a check book activity
Daily Information (a) Nov.10
Objectives:
1.Explain the purpose of checking and saving accounts.
2.Prepare checks and maintain a checkbook register.
Warm Up:
Why do people put money in a checking or savings account?
*Record expenditures
*Partner activity (withdrawals)
Agenda:
1.Warm Up2.Finish the grocery store activity3.Video (ch3,sec2)4.Ch.5 Vocab.5.Banking P.P.6.Student notes7.Balancing a check book activity
Daily Information (d) Nov.10
Objectives:
1.Explain the purpose of checking and saving accounts.
2.Prepare checks and maintain a checkbook register.
Warm Up:
*Record expenditures
*Take out vocab.
*Turn in Grocery Store activity
Agenda:
1.Warm Up2.Video (ch2,2.1)3.Ch.5 Vocab.4.Banking P.P.5.Student notes6.Balancing a check book activity7.Video (ch3,2.1)
Daily Information Nov.11
Objectives:
1.Explain the purpose of checking and saving accounts.
2.Prepare checks and maintain a checkbook register.
Warm Up:
Why do people put money in a checking or savings account?
*Record expenditures
*Partner activity (withdrawals)
Agenda:
1.Warm Up2.Video (ch2,2.1)3.Ch.5 Vocab.4.Banking P.P.5.Student notes6.Balancing a check book activity7.Video (ch3,2.1)
Daily Information Nov.11
Objectives:
1.Explain the purpose of checking and saving accounts.
2.Prepare checks and maintain a checkbook register.
Warm Up:
*Record expenditures
Agenda:
1.Warm Up2.Video (ch2,2.1)3.Ch.5 Vocab.4.Banking P.P.5.Student notes6.Balancing a check book activity7.Video (ch3,2.1)
Daily Information Nov.12
Objectives:
1.Explain the purpose of checking and saving accounts.
2.Prepare checks and maintain a checkbook register.
Warm Up:
How much money does Dave Ramsey suggest that you save in high school for emergencies?
*Record expenditures
Agenda:
1.Warm Up2.Banking P.P.3.Student notes4.Balancing a check book activity5.Video (ch3,2.1)
Daily Information Nov.12
Why Open a Checking or Savings Account?
• Safe place to keep money (Insured by the FDIC)• Both are demand deposit accounts
– Easy access to money– Many options to withdrawal money
• Saving accounts are for the accumulation of money
• May be interest earning
Cash Management The daily routine of handling money to take
care of individual or family needs
– Effective cash management includes having money available for:
• Living expenses
• Emergencies
• Savings
• Investing Slide 10
Cash Management ToolsTool Interest Special Features
Checking Account•Demand Deposit
1.5% •Checks used in place of cash•Easy access
Saving Account•Demand Deposit
2.3% •Temporary holding place•Easy access
Money Market Account•Demand Deposit •Type of savings Acc.
2.6% •Minimum balance•Tiered interest rates•Limited withdrawals
Certificate of Deposit 4 – 5.4% •Penalty for early withdrawal•Not easy to access funds
Savings Bond 4 – 5.4% •Tax advantages•Not easy to access funds
Checking Account Features
• Minimum balance requirements
• Charge transaction fees
• Cash back options
• Limited number of checks written monthly
• Overdraft Protection (NSF)
**Reduces the need to carry large amount of cash
Opening a Checking Account
• What will I need?– Money! ($50 or $100)– Personal information– Identification – Provide an official signature
• What will I be given?– Checkbook– Checkbook register
Withdrawals and Deposits
• A withdrawal (-) involves taking money from your account.o Writing checks o Using debit cards
• A deposit (+) of money can be made to your account.o Endorsing checkso Direct deposit
**Banks will not hold postdated checks and process them at a future date.
Objectives:
1.Explain the purpose of checking and saving accounts.
2.Prepare checks and maintain a checkbook register.
Warm Up:
*Record expenditures
Agenda:
1.Warm Up2.Vocab.3.Banking P.P.4.Student notes5.Balancing a check book activity6.Video (ch3,2.1)
Daily Information Nov.13
Endorsing A Check
Signature on the back of the check approving it for deposit. Checks must be endorsed to be deposited
Three Types
• Blank• Restrictive• Special
**Safest way to endorse the check is to wait until going to the bank to deposit
Blank Endorsement
• Receiver of the check signs his/her name
• Anyone can cash or deposit the check after it has been signed
Endorse Here
X Sally Smith_________
DO NOT WRITE, STAMP OR SIGN BELOW THIS LINE. RESERVED FOR FINANCIAL INSTITUTION USE________________________________
Restrictive Endorsement
• More secure than blank endorsement
• Receiver writes
“for deposit only” above his/her signature– Allows the check
only to be deposited
Endorse Here
For Deposit Only – Acct. 654986
X Sally Smith_________
DO NOT WRITE, STAMP OR SIGN BELOW THIS LINE. RESERVED FOR FINANCIAL INSTITUTION USE_______________________________
Special Endorsement
• Receiver signs and writes “pay to the order of (fill in person’s name)
• Allows the check to be transferred to another person– Also known as a
third-party check
Endorse Here
Pay to the order of Mike Smith
X Sally Smith_________
DO NOT WRITE, STAMP OR SIGN BELOW THIS LINE. RESERVED FOR FINANCIAL INSTITUTION USE_______________________________
Check 21
• Check clearing for the 21st Century Act– Current trend that changes how money is
withdrawn and deposited into accounts
How Check 21 Works
• Prior to Check 21– Paper checks physically moved from place
to place
• After Check 21– Paper checks scanned to computer to
create a “substitute check” (truncated)– Substitute check is transferred
electronically from place to place
Objectives:
1.Explain the purpose of checking and saving accounts.
2.Prepare checks and maintain a checkbook register.
Warm Up:
Explain the difference between the three different types of endorsement.
*Record expenditures
Agenda:
1.Warm Up2.Banking P.P.3.Student notes4.Balancing a check book activity5.Video (ch3,2.1)
Daily Information Nov.12
Objectives:
1.Explain the purpose of checking and saving accounts.
2.Prepare checks and maintain a checkbook register.
Warm Up:
Explain the difference between the three different types of endorsement.
*Record expenditures
Agenda:
1.Warm Up2.Banking P.P.3.Student notes4.Balancing a check book activity5.Video (ch3,2.1)
Daily Information Nov.13
Objectives:
1.Prepare checks and maintain a checkbook register.
2.Perform a bank reconciliation.
Warm Up:
•Go to the following website
www.socrative.com
•Enter the class number:
c2e084ee
•Enter your FULL NAME
•Begin
Agenda:
1.Warm Up2.Check Register3.Banking P.P.4.Student notes5.Bank Rec. activities6.Investment calculations
Daily Information Nov.14 (c)
Objectives:
1.Prepare checks and maintain a checkbook register.
2.Perform a bank reconciliation.
Warm Up:
•Explain the following terms:
– Non-sufficient Funds
– Bounced Check– Overdraft
Agenda:
1.Warm Up2.Check Register3.Banking P.P.4.Student notes5.Bank Rec. activities6.Investment calculations
Daily Information Nov.14 (d,h)
Objectives:
1.Prepare checks and maintain a checkbook register.
2.Perform a bank reconciliation.
Warm Up:
•Explain the following terms:
– Non-sufficient Funds
– Bounced Check– Overdraft
Agenda:
1.Warm Up2.Banking P.P.3.Student notes4.Bank Rec. activities5.Investment calculations
Daily Information Nov.17 (c,a)
Writing a Check
Sally Smith500 Great StreetYourtown, NJ 55555
93-456-954045086244786
503
Date: 9/6/2006
Pay to the
Order Of The Pizza Place $ 9.50
_Nine dollars_------------------------------------------------50/100_ DollarsGuardian Angel Banking423 South 15th
Yourtown, NJ 55555
Memo __Pizza_ ___ Sally Smith____0123456789 : 1234567890 : 503
Monthly Statement
• Comes from your bank
• Lists information about each transaction during the period
• Lists the current balance during the period
Reconcile a Bank Statement
Bank reconciliation - the process of adjusting the checkbook register and bank statement so they agree
• Consider the following:o deposits in transito outstanding checkso transposition errors
Cash Management ToolsTool Interest Special Features
Checking Account•Demand Deposit
1.5% •Checks used in place of cash•Easy access
Saving Account•Demand Deposit
2.3% •Temporary holding place•Easy access
Money Market Account•Demand Deposit •Type of savings Acc.
2.6% •Minimum balance•Tiered interest rates•Limited withdrawals
Certificate of Deposit 4 – 5.4% •Penalty for early withdrawal•Not easy to access funds
Savings Bond 4 – 5.4% •Tax advantages•Not easy to access funds
Objectives:
1.Prepare checks and maintain a checkbook register.
2.Perform a bank reconciliation.
Warm Up:
•Explain the following terms:
– Non-sufficient Funds
– Bounced Check– Overdraft
Agenda:
1.Warm Up2.Check Register3.Banking P.P.4.Student notes5.Bank Rec. activities6.Investment calculations
Daily Information Nov.14 (d,h)
Objectives:
1.Prepare checks and maintain a checkbook register.
2.Perform a bank reconciliation.
Warm Up:
What is the importance of performing a bank reconciliation??
Agenda:
1.Warm Up2.Corrections3.Banking P.P.4.Student notes5.Bank Rec. activities6.Investment calculations
Daily Information Nov.17 (h)
Objectives:
1.Prepare checks and maintain a checkbook register.
2.Perform a bank reconciliation.
Warm Up:
*Check your grade in infinite campus
*Record any expenditures in your budget
Agenda:
1.Warm Up2.Corrections3.Banking P.P.4.Student notes5.Investment calculations6.Study Guide7.Review Games
Daily Information Nov.18 (a)
Objectives:
1.Prepare checks and maintain a checkbook register.
2.Perform a bank reconciliation.
Warm Up:
*Check your grade in infinite campus
*Record any expenditures in your budget
Agenda:
1.Warm Up2.Corrections3.Banking P.P.4.Student notes5.Investment calculations6.Study Guide7.Review Games
Daily Information Nov.18 (h)
Liquidity
How quickly and easily an asset can be converted into cash. Liquid assets are important for emergency situations
Investors should:– Invest in both liquid and non-liquid tools
Liquidity
Checking Account
Savings Account
Money Market Account
Certificate of Deposit
Savings Bond
Most Liquid
Least Liquid
Cash Management ToolsTool Interest Special Features
Checking Account•Demand Deposit
1.5% •Checks used in place of cash•Easy access
Saving Account•Demand Deposit
2.3% •Temporary holding place•Easy access
Money Market Account•Demand Deposit •Type of savings Acc.
2.6% •Minimum balance•Tiered interest rates•Limited withdrawals
Certificate of Deposit 4 – 5.4% •Penalty for early withdrawal•Not easy to access funds
Savings Bond 4 – 5.4% •Tax advantages•Not easy to access funds
Certificate of Deposit (CD)
• Time Deposit account
• Pays a fixed rate of interest for a specified length of time
• Higher interest than a savings account
• Penalty for withdrawing money prior to the specified length of time
**Good option if you do not need immediate access to money
U.S. Savings Bond
• Discount bond (pay less than face value)– Pay $50 (discount) for a $100 bond (face value)
• Issued by the federal government– You are loaning money to the government
• Long-term saving option
Watch Your Money Grow!
How can you grow your savings?
Through…
• Principal
• Simple interest
• Compound interest
Computing Simple Interest
Simple Interest: interest computed on principal once during a certain time period
• P = amount of money invested
• R = interest rate
• T = time period that money will be set aside
Simple Interest
Interest (I) = Principal (P) × Rate (R) × Time (T)
= $1,000 × 6% annual rate × 6 months
= $1,000 × 0.06 × 6/12 = $30
Computing Compound Interest
Compound Interest: interest earned on both the principal and previously earned interest
Quarterly CompoundingAnnual Interest Rate 6%
Beginning Rate EndingYear Balance 6% Quarter Balance
1 2 3 4
1 $100.00 0.015 $1.50 $1.52 $1.55 $1.57 $106.14
2 $106.14 0.015 $1.59 $1.62 $1.64 $1.66 $112.65
3 $112.65 0.015 $1.69 $1.72 $1.74 $1.77 $119.57
Future Value of Money
Rule of 72
How long will it take to double my money?
• Divide annual interest rate into 72
Example: if you invest $50 at 6% interest, your money will grow to $100 in 12 years
( 72 ÷ 6 = 12 years)
Available Banking Services
• Safe deposit boxes
• Overdraft protection
• ATMs
• Cashier’s checks
• Financial advising
• Loans
• Internet banking
• Bank cards
Costs of Banking
• Monthly account fees
• Nonsufficient fund fees
• Special service feeso Examples: stop
payment, cashier’s check, money order
• ATM fees
• Inactive account fees
What Are Consumer Responsibilities?• Maintain your balance
o Avoid writing bad checks.
• Monitor your accounto Reconcile your bank
account.• Know your rights
o Be aware of consumer protection laws.
Objectives:
1.Prepare a bank reconciliation
2.Explain how you can grow your savings with interest
Warm Up:
Explain the difference between the three different types of endorsement.
Write this down.
Agenda:
1.Warm Up2.Bank reconciliation P.P.3.Follow along notes4.Chapter 5 activity packet
Daily Information 3/25/13
Bottom Line/Exit Ticket
• Go to the following website
– www.socrative.com• Enter the class number: c2e084ee• Enter your FULL NAME• Begin
Objectives:
1.Prepare checks and maintain a checkbook register.
2.Perform a bank reconciliation.
Warm Up:
*Quiz Today!!
Take out your study guide
Agenda:
1.Warm Up2.Ch5 Quiz3.Movie
Daily Information Nov.20
Objectives:
1.Prepare checks and maintain a checkbook register.
2.Perform a bank reconciliation.
Warm Up:
*What is the most interesting thing you learned in this chapter?
Agenda:
1.Warm Up2.Review Games3.Study Guide
Daily Information Nov.20 (c,h)