Financial Services. All Classes. Vocabulary. Name Period Day

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1 Name Period Day Financial Services All Classes Once you ve started earning money, you have to figure out the best way to spend it. Not what to spend it on necessarily you already did that with your budget, but how you re going to spend it how you re going to actually pay bills and make purchases, including those big ones you ve saved for. We have more options than ever before when it comes to financial services different types of accounts and financial institutions and different ways of moving money around. They all come with their pros and cons, and choosing the right one for you can seem overwhelming. So this unit covers all the bases of financial services. You ll learn about savings and checking accounts and debit and credit cards. We ll also look at how automated services can make your life easier and consider hazards to look out for such as identity theft. Vocabulary bank credit union board of directors FDIC NCUA savings account signature card withdrawal deposit ATM card Debit card checking account transfer payee payer check register reconcile endorse regular endorsement restrictive endorsement special endorsement bounced check non-sufficient funds (NSF) cleared check outstanding check Electronic Funds Transfer (EFT) debit card unauthorized transaction Third-party ATM fee Returned Check fee Stop Payment fee 1

2 Who s Who in Financial Services Bank Credit Union Savings Account Checking Account Purpose Requirements to Open How do you put money into the account How do you take money out of the account Your Responsibilities Bank s responsibilities ATM card available Debit card available Advantages 2

3 Endorsing a Check a. Regular endorsement b. Restrictive endorsement - use when you need money back - use when you don t need money c. Special endorsement use to transfer the check to someone else Special Transactions 1. Direct Deposit 2. Account Transfer 3. Automatic Savings Plan 4. ATM Transaction 5. Debit Card Transaction 6. Automatic Payment 7. Bank Fee 8. Stop Payment EFT Electronic Fund Transfers circle examples above 1. Pros a. b. 9. Cons a. b. c. d. CHECKING TIPS Always write checks in ink Keep unused checks in a safe place Do NOT share your PIN with anyone Choose a PIN the is difficult to guess Use the same signature every time you sign a check Sign the back of your debit card right away Check your statement every month to make sure there are no unauthorized items or errors 3

4 Review Checking Accounts Part A: Answer each question 1. What is the purpose of the signature card you fill out when you open an account? 2. What amounts are included in your savings account balance? 3. Bank accounts are insured by the government for up to what dollar amount? 4. Why is a check considered a mini-contract? 5. What does it mean when we say that checks get paid on demand. 6. Why should checks be written in ink? 7. Sometimes banks will not let you cash checks for two or three days. Why do they sometimes do this? 8. What charges do you have to pay when you bounce a check? 9. What are the consequences of misusing a checking account? 10. What should you do if you find out the bank has made an error with your account? 11. Why do people often write For Deposit Only on the back of their checks when they endorse them? 12. What is an Electronic Funds Transfer (EFT)? 4

5 Part B: Write a check to Verizon Wireless for $ for last month s cell phone charges (use today s date). Part C: Fill in the deposit ticket for the items shown at the left (use today s date) Fifteen and 41/ Part D: Endorse the three checks below using the correct type of endorsement for each situation. a. Restrictive endorsement b. Regular endorsement 5

6 Part E: Match each term listed below with the correct definition. A. Endorse B. Outstanding Checks C. Deposit Ticket 1. Checks that you have written but the bank has not yet returned. 2. To sign your name on the back of a check payable to you. 3. A bank listing of checks paid, deposits and service charges. 4. A bank form used to put money into your account. D. Reconcile E. Cancelled Checks F. Bank Statement 5. To make the bank statement balance agree with your checkbook balance. 6. Checks with the bank has paid and returned with your statement. Part F: Follow these instructions to complete the problem. 1. Open a new check register in Excel (File New (More Categories) Records Financial Records Check Register). Save the file as Check Register Review. 2. Add your name where it says Check Register. 3. Delete the sample transactions from every column EXCEPT Balance. You should NOT highlight the BALANCE column when you delete! 4. Record the transactions shown below. Add categories as needed. 1-Oct Enter an opening balance of $ Oct Write check 101 to Becker s Supermarket for $ Oct Use pay-by-phone to pay your telephone bill of $ Oct Write a check to Topps Drug Store for $ Oct Write a check to National Electric Company for $ Oct Use your ATM card to pay for clothing bought at Macy s. The clothing cost $ Oct Write a check to Sunoco Gas for $ Oct Deposit your bi-weekly paycheck of $ Oct Transfer $425 from your checking account to your savings account. ACCOUNT STATEMENT Account Summary Beginning Balance Account Number Deposits/Credits 0.00 (+) Checks/Debits (-) Statement Date Ending Balance Checking Summary 10/01 Check /09 Check /09 Check /14 Check Other Account Activity 10/31 Service Charge