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lesson sixusing banking services

teacher’s guide

www.practicalmoneyskills.com using banking services teacher’s guide

using banking services web sites

web sites for banking services

The Internet is probably the most extensive and dynamic source of informationin our society. The following Web sites can provide students and others withcurrent information, assistance, and data related to this lesson. Web addressesending in “.com” are commercial sites; “.org” are non-profit sites; and “.gov” aregovernment sites.

American Bankers Association www.aba.com

American Savings Education Council www.asec.org

Board of Governors of the Federal Reserve System www.federalreserve.gov

Current Rates for Savings Instruments www.banx.com

www.bankrate.com/ust/rate/dep_home.aspwww.bankrate.com/brm/rate/ira_home.asp

Federal Deposit Insurance Corporation www.fdic.gov

Treasury Securities and Savings Bonds

ww.frbsf.org/federalreserve/system/treasury.htmlU.S. Savings Bonds Online www.publicdebt.treas.gov/sav/sav.htm

Note: Addresses and content of Web sites change, and new sites are created daily. Use searchengines such as Yahoo, Google, AltaVista, Infoseek, Lycos, or Hotbot, to update and locate Websites related to this topic.


using banking services lesson outline

lesson 6 overview

“Where is the safest place to keep my money?” “If I put all my money in savings, how will I be ableto purchase an item or pay a bill?

While most students know that banks offer savings and checking services, few understand how tomake the best use of them. As electronic banking services expand, awareness of benefits and costsmust expand.

Lesson 6 begins with an introduction to how banks operate. Students are then familiarized with thevocabulary that helps them understand the variety of bank services. They also examine recentelectronic banking options, including debit or check cards.

Next, students learn to complete several of the forms necessary for opening and maintaining a bankaccount. They will practice completing these forms in a step-by-step manner.

Finally, students use basic mathematics skills to keep a running record of their bank accounts and toreconcile their monthly bank statements.

lesson 6 student performance goal:� The student will increase his or her understanding of the services offered by banks and perform

a variety of banking tasks.

lesson 6 objectives: The student will…

6-1 recognize financial services that banks offer.

6-2 complete a variety of banking forms (signature authorization form, deposit form, check).

6-3 demonstrate skills needed to maintain a checking or debit account (maintain a check register,interpret an account statement, reconcile a checking account).

discussion

using banking services teaching notes

6-1 The student will recognize financial services thatbanks offer.

what services do banks offer?

� Explain how a bank works and how it helpspeople manage their money. Define a creditunion and how it compares to a bank.

� Define and discuss banking terms (overhead 6-1a).

� Discuss the advantages of keeping money in asavings account, rather than keeping it at home ina piggy bank. Explain to students how theirmoney can grow by earning interest. Defineannual interest as the money a bank pays itsdepositors for the use of their money, expressed asa percentage rate for a one-year period of time.

� Help students calculate simple interest for asavings account.

� List as many banking services as students canthink of. Have students share what they knowabout these services.

� Discuss checking accounts. Tell students thatthere are a variety of considerations and optionsavailable when choosing a checking account(overhead 6-1b). Discuss some of theresponsibilities of being a checking accountcustomer, as well as consequences of not actingresponsibly.

� Discuss debit cards. Provide advantages anddisadvantages of using debit cards. Stress tostudents that like a checking account, the use ofa debit/check card is a privilege that can berevoked by the bank if there are insufficientfunds for purchases made.

� Discuss electronic banking services (overhead 6-1c). Most students are probably aware of ATMs.Discuss terms they need to understand to operatean ATM and the components of an ATM(overhead 6-1d).

� Warn students that some banks charge a fee eachtime they use an ATM. Tell students that someATMs also charge a transaction fee. They needto understand which kind of ATM accepts theirparticular cards at no additional cost. A fee of 75cents may not seem like much, but these charges

www.practicalmoneyskills.com using banking services teacher’s guide 6-1

overhead 6-1a: banking terms you

should know

overhead 6-1b: choosing a checking

account

overhead 6-1c: electronic banking services

overhead 6-1d: ATM terms you should

know


add up quickly!

How does a bank work?Banks use the money that people deposit to either lend toothers or invest. They make money by charging interest topeople who borrow money. They pay interest to customerswho keep their money in the bank.

What is a credit union?A financial cooperative owned by its members. It offers thesame financial services as a bank. It usually does so at alower cost than banks because its non-profit status makesits operating costs lower. A credit union can only serve itsmembers; it does not serve the general public.

banking terms you should know (overhead 6-1a)Account — Money deposited with a bank for safekeeping

ATM — Acronym for “automated teller machine”

Bank — A business that keeps money safe for itscustomers, lends money to borrowers, and provides otherfinancial services.

Checking account — An account that allows you to depositmoney and write checks on that account. Checking accountspay less interest than savings accounts or none at all.

Credit union — A financial cooperative owned by itsmembers to serve its members. It offers the same financialservices as a bank.

Interest — The money a bank pays for the use of a person’smoney. Interest is referred to in terms of annual percentagerate (APR).

Joint account — A savings or checking account set up inthe names of more than one person, i.e. parent/child.

Minimum deposit — The least amount of money a bankrequires when opening an account.

Savings account — A bank account that allows you to putmoney away to use later. The bank pays interest inexchange for use of the money in the account.

Teller — A bank employee who performs banking servicesfor the public, such as cashing checks and accepting deposits.


overhead 6-1a: banking terms you

should know


Simple interest — Interest calculated on the principalamount but not on any interest that has been earned.

example: Your bank pays 5% interest per year — 5 cents forevery dollar. If you put $100 in a savings account at thebank, you’ll earn an extra $5.00 by the end of the year. Yoursavings will grow to $105.00. Now, how much interestwould you earn if you put $1000 into savings?

banking services: financial-related activitiessuch as:

� Automatic deposit and payment� Storage of valuables� Transfer of money� Checking accounts� Savings accounts� Debit cards (also called check cards)� ATMs

choosing a checking account (overhead 6-1b)Location — bank branch offices; hours of operation;availability of ATMs

Fees — monthly fees; per check fees; printing of checks;balance inquiry fees; ATM fees

Other charges — overdraft charge; stop-payment fees

Interest — rate earned; minimum deposit to earn interest

Restrictions — minimum balance; holding period fordeposited checks

Special features — direct deposit; automatic payments;overdraft protection; online banking; discounts or freechecking for students

electronic banking services (overhead 6-1c)Direct deposit — earnings automatically deposited intobank accounts.

Automatic payments — an automatic payment systemwhere bills are paid through direct withdrawal from a bankaccount.

Automatic teller machines (ATM) — allow customers toget cash and conduct banking transactions.


overhead 6-1b: choosing a checking

account

overhead 6-1c: electronic banking services


Point-of-sale transactions — ATM/debit cards acceptedat stores or restaurants as payment.

ATM terms you should know (overhead 6-1d)Balance — The amount of money currently in an account.

Deposit — The money put into a bank account. An ATMcan accept bills only, for deposit; it cannot accept change.

Inquiry — Tells how much money you currently have inyour account (account balance).

Transaction — Business done with a bank, includingdeposits and withdrawals.

Withdrawal — An amount of money taken out of anaccount.

Debit card/ check card — A banking card that can be usedto purchase goods and services electronically. The cardreplaces cash or checks. The amount of purchase istransferred immediately from the customer’s account to thereceiver’s account. It allows you to withdraw money at anATM and make point-of-sale purchases without writing acheck. It often requires that the cardholder enter a PIN.

PIN (Personal Identification Number) — A secretnumber or code that protects the security of an account.

benefits of using a debit card/check card:� Makes paying at the checkout counter quicker

and more convenient than writing a check.� You don’t need to carry a checkbook or a lot of

cash.� Can be used out of town or at places where

personal checks are not accepted.warning: always keep track of your checking accountbalance so sufficient funds are available for a purchase.

how do you keep track of your debitcard/check card transactions?

� Debit card holders receive receipts at each ATMor merchant location. Users typically record debitcard purchases in their checkbook registers. Alldebit/check card transactions will appear asdeductions on your next checking accountstatement.


overhead 6-1d: ATM terms you

should know


lesson 6 quiz: financial services


quiz 6-1 | quiz key 6-1

www.practicalmoneyskills.com using banking services overhead 6-1a

banking terms you should know

� Account

� ATM

� Bank

� Checking account

� Credit union

� Interest

� Joint account

� Minimum deposit

� Savings account

� Teller

www.practicalmoneyskills.com using banking services overhead 6-1b

choosing a checking account

Locationbank branch offices; hours of operation; availability of ATMs

Feesmonthly fees; per check fees; printing of checks; balance inquiry fees;ATM fees

Other chargesoverdraft charge; stop-payment fees

Interestrate earned; minimum deposit to earn interest

Restrictionsminimum balance; holding period for deposited checks

Special featuresdirect deposit; automatic payments; overdraft protection; online

banking; discounts or free checking for students

www.practicalmoneyskills.com using banking services overhead 6-1c

electronic banking services

Direct depositearnings automatically deposited into bank accounts.

Automatic paymentsan automatic payment system where bills are paid through directwithdrawal from a bank account.

Automatic teller machine (ATM) allows customers to get cash and conduct banking transactions.

Point-of-sale transactionsATM/debit cards accepted at stores or restaurants as payment.

www.practicalmoneyskills.com using banking services overhead 6-1d

ATM terms you should know

ATM Terms You Should Know

PIN Inquiry

Balance Transaction

Deposit Withdrawal

Button

Screen

Deposit slot Withdrawalslot

Card slot

Receipt slot

Keyboard

lesson 6 quiz: electronic banking

name__________________________________________________________date___________________________________

choose the correct answer.

1. ____ The bank pays for the use of money in the form of:a. a minimum deposit.b. interest.c. savings.d. cash from an ATM.

2. ____ Electronic banking services often require the use of:a. an inquiry.b. a checking account.c. a deposit.d. a PIN.

3. ____ If you and your mother open a bank account together, it’s called:a. a joint account.b. an electronic banking service.c. an automatic payment.d. a checking account.

4. ____ Which of the following tasks will an ATM not allow? a. withdraw cashb. find the current balance in your accountc. make a depositd. cash a check

5. ____ Which of these statements about a debit card is not true?a. It is faster and easier to use than paying with a check.b. You don’t have to carry as much cash if you have one.c. You don’t have to worry about your balance like you do with a checkbook.d. It allows you to withdraw money at an ATM.

www.practicalmoneyskills.com using banking services quiz 6-1

lesson 6 quiz: electronic banking

name__________________________________________________________date___________________________________

choose the correct answer.

1. ____ The bank pays for the use of money in the form of:a. a minimum deposit.b. interest. *c. savings.d. cash from an ATM.

2. ____ Electronic banking services often require the use of:a. an inquiry.b. a checking account.c. a deposit.d. a PIN. *

3. ____ If you and your mother open a bank account together, it’s called:a. a joint account. *b. an electronic banking service.c. an automatic payment.d. a checking account.

4. ____ Which of the following tasks will an ATM not allow? a. withdraw cashb. find the current balance in your accountc. make a depositd. cash a check *

5. ____ Which of these statements about a debit card is not true?a. It is faster and easier to use than paying with a check.b. You don’t have to carry as much cash if you have one.c. You don’t have to worry about your balance like you do with a checkbook. *d. It allows you to withdraw money at an ATM.

www.practicalmoneyskills.com using banking services quiz key 6-1


6-2 The student will complete a variety of bankingforms (signature authorization form, deposit form,check).

how do you fill out bank forms? how do youwrite a check?

� Explain the forms banks require their customersto fill out in order to obtain access to financialservices. Tell students that all bank forms need tobe completed in ink, not pencil. Ask them whythey think this is so important.

� Define the terms: “signature authorization card,”“check,” “endorse,” and “deposit slip.”

� Explain that to open an account, customers arerequired to complete a signature authorizationcard. The bank may require a birth certificate asproof of identification. Check to see if studentshave memorized their social security number. Ifnot, have them write it down and practicememorizing their number.

� Demonstrate the correct way to complete asignature authorization card (overhead 6-2a).Have students complete a sample form (activity6-2a).

� Identify the parts of a completed check byanswering questions (overhead 6-2b).

� Discuss how to endorse a check to be depositedin an account. Tell students that if the check is tobe deposited, rather than being cashed, theaccount number should be written in the check’sendorsement area. Clarify that this is done sothat if a check is misplaced or stolen, it cannot bedeposited into another person’s account.

� Examine a deposit slip. Demonstrate the correctway to complete a deposit slip (overhead 6-2c).

� Ask a local bank for a number of the envelopesused in issuing cash. Make copies of blankchecks (activity 6-2e) and complete them invarious amounts. Give each student differentamounts of “play” money (both coins and bills)and several completed checks. Put each student’samount in an envelope. Have students counttheir money and fill out a deposit slip for theamount in their envelopes. They may or may notwant cash back (activity 6-2b).


overhead 6-2a: opening a bank account

overhead 6-2b: parts of a check

overhead 6-2c: making a deposit

overhead 6-2e: writing a check

overhead 6-2d: writing the amount of a

check in words


� Demonstrate how to complete a check using wordsto express the dollar amount. Show an example(overhead 6-2d), model, and involve students in theprocess of converting other dollar amounts to wordson the overhead or board. Give students morepractice using activity 6-2c.

� Explain to students that a check, just like cash, canbe stolen. They need to keep their checkbooks in asafe place at all times. They should never loan theircheckbooks to friends.

� Help students understand that they also need tosafeguard their money by filling out a checkcarefully, so that it cannot be tampered with. Listprecautions a check writer should take so his or hercheck cannot be changed in any way: always write acheck in ink (rather than pencil); do not leave anyspace between numbers in a written amount; draw aline from the completion of the written out numberto the end of the line.

� Remind students that their social security numbersare personal identifiers that can be stolen ormisused by others. They should never give wideaccess to their social security numbers by writingthem on their personal checks.

� Demonstrate the correct way to write a check(overhead 6-2e).

� Have students find something they would like tobuy from a mail order catalogue. Have them write acheck, made payable to the appropriate companyname for the correct amount. (activity 6-2d)

� Use Activity Templates to provide students withadditional practice writing checks, endorsingchecks, and completing deposit slips.

Signature authorization card — The card that a customersigns when he/she opens a bank account. The signature is aform of personal identification.

Check — A written document instructing the bank to pay aspecific amount of money from the check-writer’s account toa specific person or company.

Endorse — To sign the back of a check before cashing ordepositing it.

Deposit slip — An itemized slip showing the exact amountof paper money, coin, and checks being added to an account.

Net deposit — The final amount of a deposit, less cashreceived.


student activity 6-2d: writing a check

student activity 6-2c: writing out amounts

overhead 6-2e: writing a check


opening a bank account


parts of a check

What is the date of the check? ___________________________

Who is the check made payable to? _______________________

What is the check number?______________________________

What is the check transit number? _______________________

(Hint: look for the top part of the two-part number in the upper rightcorner of the check.)

Where do you endorse a check? __________________________

Where is the account number? ___________________________


making a deposit

1. Date — Write today’s date.

2. Bills — If you are depositing paper bills, write the amount.*

3. Coins — If you are depositing coins, write the amount.*

4. Checks — If you are depositing a check, write the bank transitnumber.

5. Amount — Write the amount of the check here.*

6. Other Checks — List the total amount of the checks listed on thereverse side of the deposit slip.*

7. Total — Write the total amount you are depositing here.*

8. Cash — If you want the bank teller to give you money back fromthe deposit, write the amount of cash you want here.*

9. Net Deposit — Subtract the cash amount you want back. Thenwrite the net (final) amount of your deposit.*

* Remember to…

place the dollar amount to the left of the vertical line

place the cents amount to the right of the vertical line.


writing the amount of a check in words

$ 857.19

Start writing at the far left side of the line

Eight hundred fifty seven Dollars

Follow the dollar amount by the word “and”

Eight hundred fifty seven and Dollars

Write the amount of cents over the number 100

Eight hundred fifty seven and 19/100 Dollars

Draw a line from the end of the 100 to the end of the line.

Eight hundred fifty seven and 19/100 -----------Dollars

www.practicalmoneyskills.com using banking services overhead 6-2e

writing a check

1. Date Write today’s date.

2. Payee Write the name of the person or company that you are paying.

3. Amount of check in numerals Write the amount of the check in numbers. Be careful not to leave anyspace between your numbers.

4. Amount of check in wordsWrite the amount of the check in words.

5. Name Your personal information is printed here. Never list your SocialSecurity number on your printed check.

6. Signature Sign your check the same way you signed your name on the signaturecard.

7. Memo Write why you wrote the check. If you are paying a bill, put down anyinformation requested by the company.

8. Identification numbersThese numbers identify your bank, account number, and the checknumber. They are printed in special magnetic ink that machines can read.

opening a bank account

www.practicalmoneyskills.com using banking services activity 6-2a

name:____________________________________________________________ date: ______________________

Directions:Complete the signature authorization card below. Print your personal informationneatly. Sign the card, using your full name.

making a deposit

www.practicalmoneyskills.com using banking services activity 6-2b

name:____________________________________________________________ date: ______________________

1. Date — Write today’s date.

2. Bills — If you are depositing paper bills, write the amount.*

3. Coins — If you are depositing coins, write the amount.*

4. Checks — If you are depositing a check, write the bank transit number.

5. Amount — Write the amount of the check here.*

6. Other Checks — List the total amount of the checks listed on the reverse side of the

deposit slip.*

7. Total — Write the total amount you are depositing here.*

8. Cash — If you want the bank teller to give you money back from the deposit, write the

amount of cash you want here.*

9. Net Deposit — Subtract the cash amount you want back. Then write the net (final)

amount of your deposit.*

* Remember to…place the dollar amount to the left of the vertical line

place the cents amount to the right of the vertical line.

writing out amounts

www.practicalmoneyskills.com using banking services activity 6-2c

name:____________________________________________________________ date: ______________________

Directions:Write the following amounts of money using words, as you would on a check.

1. $836.99

_____________________________________________DOLLARS

2. $3,455.00

_____________________________________________DOLLARS

3. $71.22

_____________________________________________DOLLARS

4. $569.07

_____________________________________________DOLLARS

5. $9,670.11

_____________________________________________DOLLARS

Word Bank:

10: ten 15: fifteen 20: twenty 70: seventy

11: eleven 16: sixteen 30: thirty 80:eighty

12: twelve 17: seventeen 40: forty 90: ninety

13: thirteen 18: eighteen 50: fifty _00: hundred

14: fourteen 19: nineteen 60: sixty _000: thousand

writing out amounts

www.practicalmoneyskills.com using banking services activity key 6-2c

name:____________________________________________________________ date: ______________________

Directions:Write the following amounts of money using words, as you would on a check.

1. $836.99

Eight hundred thirty six and 99/100 ———————DOLLARS

2. $3,455.00

Three thousand, four hundred fifty five and 00/100——-DOLLARS

3. $71.22

Seventy one and 22/100———————————-DOLLARS

4. $569.07

Five hundred sixty nine and 07/100 ———————-DOLLARS

5. $9,670.11

Nine thousand, six hundred seventy and 11/100———-DOLLARS

Word Bank:

10: ten 15: fifteen 20: twenty 70: seventy

11: eleven 16: sixteen 30: thirty 80:eighty

12: twelve 17: seventeen 40: forty 90: ninety

13: thirteen 18: eighteen 50: fifty _00: hundred

14: fourteen 19: nineteen 60: sixty _000: thousand

writing a check

www.practicalmoneyskills.com using banking services activity 6-2d

name:____________________________________________________________ date: ______________________

1. Date

Write today’s date.

2. Payee

Write the name of the person or company that you are paying.

3. Amount of check in numbers

Write the amount of the check in numbers. Be careful not to leave any space between yournumbers.

4. Amount of check in words

Write the amount of the check in words.

5. Name

Your personal information is printed here. Never list your Social Security number on yourprinted check.

6. Signature

Sign your check the same way you signed your name on the signature card.

7. Memo

Write why you wrote the check. If you are paying a bill, put down any informationrequested by the company.

writing a check

www.practicalmoneyskills.com using banking services activity 6-2d, cont.

name:____________________________________________________________ date: ______________________


6-3 The student will demonstrate skills needed tomaintain a checking or debit account (maintain a checkregister, interpret an account statement, reconcile achecking account).

how do you maintain a checking or debitaccount?

� Familiarize students with the terminologyassociated with checking accounts. (overhead 6-3a)

� Discuss the advantages of using a checkingaccount. Compare the features of a check tothose of cash or a debit card.

� Explain the extra costs that may be associatedwith a checking account.

� Stress the importance of keeping accurate recordswith regards to maintaining a checking account.If the checking account is linked to an ATMcard or a debit card, the individual must alsokeep track of ATM withdrawals and debit cardpurchases (overhead 6-3b).

� Take students through the process ofmaintaining a running account balance (activity6-3a). As a group, have students read the items.Record the transactions on overhead 6-3d asstudents complete the “running balance”worksheet at their desks. Have students answerrelated questions (activity 6-3a).

� Create a variety of scenarios in which studentsenter data and keep a running balance oftransactions using activity template 6-3b.

� Explain that a bank helps its customers stay ontrack by sending out a monthly statement of allactivities on an account. Item by item, helpstudents read and interpret a bank statement(overhead 6-3c).

� Have students read and interpret a bankstatement to answer specific questions (activity6-3c).

� Outline the steps for reconciling a checkingaccount using overhead 6-3e. Ask students toreconcile a checking account using activity 6-3d.


overhead 6-3a: “check” out these terms

overhead 6-3b: maintaining a checking account

overhead 6-3d: keeping a running balance

student activity 6-3a: keeping a running balance

overhead 6-3c: reading a bank statement

overhead 6-3e: reconciling a checking account

student activity 6-3b: creating a check register


checking terms you should knowOverdraft — A check written for more money than iscurrently in the account. If the bank refuses to cash thecheck, it is said to have “bounced.”

Bounced check — A check that a bank has refused to cashor pay because the check-writer did not have enoughmoney to cover it in his or her account. This is referred toas having “insufficient funds.”

Canceled check — A “used” check. It has been paid andsubtracted from the check-writer’s account. Canceledchecks have extra information on them from the banktracing the payment process.

Clear — A check “clears” when its amount is paid andsubtracted from your checking account. Allow threebusiness days for a check to clear.

Stop payment — A request made to a bank to not pay aspecific check. There is often a charge for this service.

Service charge — A monthly fee a bank charges forhandling a checking account.

Voided check — An invalid check that cannot be cashed.To “void” a check means to mark the check with the word“VOID.”

advantages of a checking account:� You don’t have to carry cash, which can get lost

or stolen.� You can safely send it in the mail as payment.� A cancelled check is proof of payment.

extra costs of a checking account:� Monthly fees� Per-check charges� Balance requirements� Interest rate� Bounced check charges� ATM charges� Stop payment fees� Charges for printed checks� Interest on checking


overhead 6-3a: “check” out these terms


interpreting a bank statement and reconcil-ing an account:1. Reading a bank statement

2. Reconciling an account� Checking the bank statement� Verifying checks in the check register� Verifying deposits and ATM transactions� Verifying check card transactions� Correcting entry errors in the check register� Correcting deposit or ATM transaction amounts

in the check register� Correcting check card transaction amounts in the

check register� Correcting errors of omission in the check

register� Finding outstanding transactions

3. Practice reading a bank statement

4. Practice reconciling an account


overhead 6-3c: reading a bank statement

overhead 6-3e: reconciling a checking account


“check” out these terms!

� Overdraft

� Bounced check

� Canceled check

� Check card/ Debit card

� Clear

� Stop payment

� Service charge

� Voided check


maintaining a checking account

� ATM Card

� Check Transaction

� Debit/Check Card


reading a bank statement


keeping a running balance

CHECK DATE DESCRIPTION TRANSACTION DEPOSIT BALANCENO. AMOUNT AMOUNT

www.practicalmoneyskills.com using banking services overhead 6-3e

reconciling a checking account

Step 1: Get the current balance from your bank statement.

Step 2: Add deposits recorded in your check register that are not onthis statement.

Step 3: Subtract outstanding checks. These are checks you have writtenthat have not yet cleared the banking system.

Step 4: Compare the result with the current balance in your checkregister.

Remember to…

- subtract service fees or other charges

+ add direct deposits

+ add interest earned


www.practicalmoneyskills.com using banking services activity 6-3a

name:____________________________________________________________ date: ______________________

Directions:Record checks, a check card payment, an ATM transaction and a deposit in thecheckbook register below. Include the date, description, and amount of each entry.

Calculate the balance.

1. May 26: write beginning balance of $527.96.

2. May 27: write check #107 to Mrs. Wilson. You pay your landlord your share of the rentpayment: $225.00.

3. May 28: make a check card payment to Foodland. You pay $22.52 for groceries.

4. June 1: write check #108 to Bank of Illinois. You make a car payment of $165.23.

5. June 2: write check #109 to Interstate Phone Service for $62.77.

6. June 2: use your ATM card to withdraw $20.00.

7. June 15: you deposit your paycheck for $425.00. Write this amount in the DEPOSITcolumn.



www.practicalmoneyskills.com using banking services activity 6-3a cont.

name:____________________________________________________________ date: ______________________

Directions:Use the check register you just completed to answer the questions:

1. What was your account balance on May 30?

_______________________

2. Your favorite band just released a new CD. It costs $21.00. Can you afford to buy the CDon June 3? What will your account balance be if you do?

_______________________

3. You find a leather jacket on sale for $189.00. Can you afford to buy the jacket on June 16?What will your account balance be if you do?

_______________________

4. What was the amount of check #109? Who was it payable to?

_______________________


www.practicalmoneyskills.com using banking services activity key 6-3a

name:____________________________________________________________ date: ______________________

Directions:Record checks, a check card payment, an ATM transaction and a deposit in thecheckbook register below. Include the date, description and amount of each entry.

Calculate the balance.

1. May 26: write beginning balance of $527.96.

2. May 27: write check #107 to Mrs. Wilson. You pay your landlord your share of the rentpayment: $225.00.

3. May 28: make a check card payment to Foodland. You pay $22.52 for groceries.

4. June 1: write check #108 to Bank of Illinois. You make a car payment of $165.23.

5. June 2: write check #109 to Interstate Phone Service for $62.77.

6. June 2: use your ATM card to withdraw $20.00.

7. June 15: you deposit your paycheck for $425.00. Write this amount in the DEPOSITcolumn.


527.96

107 5/27 Mrs. Wilson 225.00 225.00

rent 302.96

C.Card 5/28 Check Card - Foodland 22.52 22.52

groceries 280.44

108 6/1 Bank of Illinois 165.23 165.23

car payment 115.21

109 6/2 Interstate Phone Service 62.77 62.77

phone 52.44

ATM 6/2 Cash Withdrawal 20.00 20.00

32.44

ATM 6/15 Deposit 425.00 425.00

paycheck 457.44


www.practicalmoneyskills.com using banking services activity key 6-3a cont.

name:____________________________________________________________ date: ______________________

Directions:Use the check register you just completed to answer the questions:

1. What was your account balance on May 30?

* $280.44

2. Your favorite band just released a new CD. It costs $21.00. Can you afford to buy the CDon June 3? What will your account balance be if you do?

* Yes—$11.44

3. You find a leather jacket on sale for $189.00. Can you afford to buy the jacket on June 16?What will your account balance be if you do?

* Yes—$268.44

4. What was the amount of check #109? Who was it payable to?

* $62.77 to Interstate Phone Service

create a check register

www.practicalmoneyskills.com using banking services activity 6-3b

name:____________________________________________________________ date: ______________________



www.practicalmoneyskills.com using banking services activity 6-3c

name:____________________________________________________________ date: ______________________

Directions:Using the bank statement on the next page, answer the following questions:

1. What period does this statement cover? ______________________________________

2. What is the account number of this statement? ________________________________

3. How many deposits were made? ____________________________________________

What were the amounts? __________________________________________________

4. How many checks cleared? ________________________________________________

What was the total dollar amount of the checks that cleared? ____________________

5. How many ATM transactions were there? ____________________________________

6. What was the total amount of debit card transactions? __________________________

7. What did service charges cost? ______________________________________________

8. What is the new balance of the account? ______________________________________

9. Did check #182 clear? ____________________________________________________

What was the amount? ____________________________________________________

10. Did check #185 clear? ____________________________________________________


www.practicalmoneyskills.com using banking services activity 6-3c, cont.

name:____________________________________________________________ date: ______________________


www.practicalmoneyskills.com using banking services activity key 6-3c

name:____________________________________________________________ date: ______________________

Directions:Using the bank statement on the next page, answer the following questions:

1. What period does this statement cover? * 12/20/99 - 1/18/00

2. What is the account number of this statement? * 0471-678

3. How many deposits were made? * Three

What were the amounts? * $1200, $521.78, $258.90

4. How many checks cleared? * Six

What was the total dollar amount of the checks that cleared? * $1590.25

5. How many ATM transactions were there? * Three

6. What was the total amount of debit card transactions? * $35.00

7. What did service charges cost? * $3.50

8. What is the new balance of the account? * $883.97

9. Did check #182 clear? * Yes

What was the amount? * $17.00

10. Did check #185 clear? * No

reconciling an account

www.practicalmoneyskills.com using banking services activity 6-3d

name:____________________________________________________________ date: ______________________

Directions:Use the bank statement, the check register, and the reconciliation worksheet on the followingpage to balance this checkbook.


www.practicalmoneyskills.com using banking services activity 6-3d, cont.

name:____________________________________________________________ date: ______________________

Use the reconciliation worksheet above to answer the following questions:

1. What is the new balance shown on the statement? __________________________

2. Not all deposits listed in the check register are shown on the statement.

How much was the deposit that did not show up in the statement? ______________

3. Add the new balance and any deposit not shown on the statement.

What is the total? ____________________________________________________

4. What is the total amount of outstanding checks and withdrawals? ______________

5. What is the ending balance? ____________________________________________

Enterthe New Balance shownon your statement $ ________

Addany deposits or transfers listed $ ________in your register that are not $ ________shown on your statement $ ________

Total + $ ________

Calculate the subtotal $ ________

Subtractyour total outstandingchecks and withdrawals - $ ________

Calculate the ending balanceThis amount should be thesame as the current balancein your check register $ ________


www.practicalmoneyskills.com using banking services activity key 6-3d

name:____________________________________________________________ date: ______________________

Use the reconciliation worksheet above to answer the following questions:

1. What is the new balance shown on the statement? * $103.69

2. Not all deposits listed in the check register are shown on the statement.

How much was the deposit that did not show up in the statement? * $253.17

3. Add the new balance and any deposit not shown on the statement.

What is the total? * $356.86

4. What is the total amount of outstanding checks and withdrawals? * $36.31

5. What is the ending balance? * $320.55

Enterthe New Balance shownon your statement $ 103.69

Addany deposits or transfers listed $ 253.17in your register that are not $ ________shown on your statement $ ________

Total + $ 253.17

Calculate the subtotal $ 356.86

Subtractyour total outstandingchecks and withdrawals - $ 36.31

Calculate the ending balanceThis amount should be thesame as the current balancein your check register $ 320.55


using banking services lesson outline

additional activities for practice and generalization of concepts related to using banking services

� Take a field trip to a local bank to allow students to view various banking processes.

� Set up a classroom “bank” where students practice making deposits, making withdrawals, andcashing checks using “play” money. Stock the student bank with mock checks, deposit andwithdrawal forms, and check registers.

� Construct a classroom ATM with keypad numbers and written instructions. Have studentspractice punching in a password and selecting desired transactions.

� Establish a classroom checking system that allows students to “earn” money for their accountby completing assignments, then “buy” desired activity options or rewards by writing checks.Students are responsible for maintaining a check register of their deposits and checkwithdrawals.

� Invite a representative from a local bank to speak to the class about various banking services,including ATM and debit cards. Ask the representative to provide a variety of forms forstudents to complete.

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