Unit 4 More Banking: Checks, Savings and ATMs

Unit 4 More Banking: Checks, Savings and ATMs

Banking: Vocabulary Review Directions: Draw a line to match the word with its meaning. 1. bank 2. credit 3. ATM 4. minimum 5. maximum 6. teller 7. balance 8. window 9. deposit 10. interest 11. withdrawal a. how good you are at paying your bills b. the most c. money you take out of the bank d. where a teller takes and gives money e. a place where you can keep your money f. an automated teller machine; not a person g. money you put in the bank h. the least i. money the bank gives you for putting your money in their bank j. the money you have in your account k. someone who works at the bank Directions. Fill in the blanks with one of the words below the blank. 1. The in the third can help you now. (teller, credit) (deposit, window) 2. I made a $100 to my savings account and now it is (balance, deposit) getting too. (interest, teller) 3. After I take money out in this, I will have only a $10 (deposit, withdrawal). (balance, bank) 4. The charge is $10; and the is $100. (minimum, maximum) (minimum, maximum) 5. There were too many people waiting inside the bank, so I used the. (ATM, balance) 6. I don t have any cash today. Can you give me? (interest, credit)

Personal Reflection How much do you know about bank accounts? Do you have a bank account? What kind of account do you have (savings or checking)? Are you getting the most from your bank? Directions. Think about your banking skills. Mark an X in one box in each line to show your banking skills. Banking Skills Self-Assessment Area of Focus Ready to Learn Beginner Experienced Expert How to Use a Checking Account I have never written a check. I write checks, but I need help with them. I write checks. I do not balance my checkbook. I write checks and I balance my checkbook. How to Use a Savings Account I have never had a savings account. I have a savings account. I don t put very much in it. I deposit money into my savings account from every paycheck. I deposit money into my savings account every payday and I try to make sure I get interest on my account. How to Use an ATM I have never used an ATM. I need help to use an ATM. I can use an ATM. I can use an ATM and I am careful not to pay extra charges to use ATMs. What do you want to learn in this lesson? Write your questions here.

Clap the Stress O O O O o o o O o o o today No problem. I appreciate it. against my checkbook to the credit union the law won t balance a deposit for me to bounce a check you better I think so. Conversations Conversation 1 Teller: Hi. How can I help you today? Person: I d like to cash this check. Teller: What is your account number? Person: 25102 Conversation 2 Person 1: Person 2: Person 1: Person 2: Person 1: Are you going to the credit union? Yes, I am. Could you drop off a deposit for me? Sure. No problem. Thanks. Conversation 3 Person 1: Person 2: Person 1: Person 2: My checkbook won t balance. Did you write down all your checks? I think so. But sometimes my husband writes a check and doesn t tell me. There s your problem. You better see if there are some checks missing.

An English Idiom to bounce a check -- to write a check without money in the bank; the check will bounce back to the account; also called bad checks. Conversation 1 Person 1: I need to make a deposit before my checks bounce. Person 2: You wrote a check without money in the bank? Person 1: Yes, but I ll take care of it now. Conversation 2 Person 1: That store charges $20 for bounced checks. Person 2: I know, and it s against the law to bounce a check. Person 1: So why do you do it? Write a sentence using the idiom bounce a check. Note: When you write a check and you do not have money in your checking account to cover it (pay for the check), the check will bounce. It will go back to your bank. The bank will not pay the person to whom you wrote the check because there are insufficient funds (not enough money). Bounced checks cost a lot of money. Your bank will charge you a $15 - $30 fee for every check that bounces. The company you wrote the check to may also charge you a $10 - $30 fee. It is against the law to bounce a check. It hurts your credit, too. Dept. of Treasurer Paycheck for Date Jane Doe Paycheck for John Doe Directions. Fill in the Blanks. Dept. of Treasurer Date When you write a check and do not have money to the check, it will bounce. If you bounce a check your bank will charge you a. The check is not covered because there are funds. It hurts your to bounce a check.

Writing Checks Here are the places on a check where you must write: 1. The date. You can write it in numbers or words. (Example: 4/4/04 or Apr. 4, 2004) 2. The name of the person or company to whom you are writing the check 3. The amount of the check in numbers (Example: $18.42) 4. The amount of the check written out The dollars are written in words; the cents are written as numbers over /100. (Example: Eighteen dollars and 42/100) 5. Your signature 6. What the check is for (This is optional. You do not have to write it. It is a note to help you remember. You can write the invoice number for a bill. You do not have to write anything. You can leave it blank. All of the other lines must be filled in.) Your Name 1001 Address 1 16-7890/333 City, State, zip 2 3 Date Pay to the Order of $ Dollars XYZ Bank Address 4 6 5 City, State Zip For 12345691 000000000012345678 4567 Practice Fill in the checks. Use the information given above the check. 1. Mark Smith is buying a car from Jake s Used Autos for $1895. The date is 6/20/03. Mark and Ann Smith 3503 1101 Ross Rd. 16-7890/333 Phoenix, AZ 85041 Date Pay to the Order of $ Dollars XYZ Bank 800 N. Central Ave. Phoenix, AZ 85017 For 12345691 000000000012345678 4567

2. On June 22, 2003 Ann Smith is paying for a dress at Donna s Closet. It costs $49.83, including tax. Mark and Ann Smith 3504 1101 Ross Rd. 16-7890/333 Phoenix, AZ 85041 Date Pay to the Order of $ Dollars XYZ Bank 800 N. Central Ave. Phoenix, AZ 85017 For 12345691 000000000012345678 4567 3. A $23.80 bill is due to the Inland Water Company. Ann Smith is paying the bill on June 25, 2003. Mark Name and Ann Smith 3505 1001 1101 Address Ross Rd. 16-7890/333 Phoenix, City State AZ Zip 85041 Code Date Pay to the Order of $ Dollars XYZ Bank 800 Address N. Central Ave. Phoenix, AZ 85017 For 12345691 000000000012345678 4567 4. Mark Smith is paying $10.13 for a book from the Best Read Bookstore on 6/25/03. Mark and Ann Smith 3506 1101 Ross Rd. 16-7890/333 Phoenix, AZ 85041 Date Pay to the Order of $ Dollars XYZ Bank 800 N. Central Ave. Phoenix, AZ 85017 For 12345691 000000000012345678 4567

Balancing Your Checkbook A checking account helps you to know where you spend your money. Your check register will help you to keep track of your checks. Every time you write a check, write the information in your check register. This is a payment or debit. You subtract this amount. Every time you make a deposit to your account, write it in your check register. This is a deposit or credit. You add this amount. Example: Mark and Ann Smith s Checkbook Check No. Date Description of Transaction Payment (Debits) Deposit (Credits) Balance 817.02 3500 6/10/03 Southern Electric Co. 68.79-68.79 electric bill 748.23 3501 6/10/03 ABC Insurance Co. 224.00-224.00 car insurance 524.23 6/15/03 Deposit 440.02 + 440.02 paycheck 964.25 3502 6/16/03 Family Dental Office 148.00-148.00 payment on root canal 816.25 6/20/03 Deposit 1500.00 +1500.00 Loan for car 2316.25 Practice Fill in checks number 3503 3506. Use the information from the checks you wrote on pages 70 and 71. A Tip: Buy duplicate checks. This costs a little more, but lets you keep a copy of the check for your records.

The Bank Statement Every month your bank will send you a statement. Use the statement to balance your checkbook (make sure that your checkbook and bank statement agree). The statement will show: 1. beginning balance: how much money you had at the beginning of the month 2. debits: each check that cleared at the bank (was charged to your account); it will also show the number of the check 3. credits: each deposit that was made 4. ending balance: how much money is in the account at the end of the month Example: Statement. Posting Description Debits Credits New Balance JUN1 Beginning Balance 817.02 JUN13 CHECK NO. 3500 Trace #3147 68.79 748.23 JUN13 CHECK NO. 3502 Trace #2166 148.00 600.23 JUN15 CHECK DEPOSIT 440.02 1040.25 JUN20 CHECK DEPOSIT 1500.00 2540.25 JUN25 CHECK NO. 3503 Trace #1065 1895.00 645.25 JUN25 CHECK NO. 3504 Trace #1278 49.83 595.42 JUN28 CHECK NO. 3506 Trace #3097 10.13 585.29 JUN30 Closing Date... Ending Balance 585.29 Directions. Look at the statement. Answer the questions. 1. How much is the beginning balance? 2. How much is the ending balance? 3. How many checks cleared? 4. What is the total amount of deposits made? 5. How much was check number 3504? 6. How much was check number 3500? 7. Which check was written for $148.00? 8. Which checked was posted on June 28? 9. On what date was the balance the highest? 10. On what date did the statement close?

Balance Your Checkbook Not every check will clear (be subtracted from your account) every month. The statement lists the checks that have cleared. Checks that have not cleared (been paid) will not be listed on the statement. To balance your checkbook with the statement: Write down which checks have not yet cleared. Add those checks and subtract the total from the Ending Balance on the statement. This amount should match the balance in your checkbook. Practice A deposit is a plus ( +). You add the money you deposit. A check or withdrawal is a minus (-). You subtract the checks you write or the withdrawals you make. Look at the statement on page 73. Compare it to Mark and Ann Smith s checkbook on page 72. 1. Put a checkmark in the column for each check and deposit on the statement. 2. Write the numbers of the checks which did not clear (do not have a ). 3. Add all the check amounts that have not cleared. 4. Subtract the total amount of checks that have not cleared from the statement ending balance. Did you end with a balance of $337.49? Good job! That s right. If not, try again. Make sure you wrote the correct amounts. Make sure you added and subtracted the money correctly. Math Practice Read the following sentences. Add or subtract the dollar amounts. Write your answers. 1. David has $42.50 in his checking account. He deposits $38.00. He writes a check for $43.15. What is his balance? (How much is left?) 2. Sharon has $103.22 in her account. She writes a check for $48.20. She writes another check for $69. What is her balance? 3. Linda has $98.00 in her account. She deposits $92.50. What is her balance? 4. Whose check is going to bounce? David s Sharon s Linda s

Pronunciation Practice Sounds of English Practice listening to the sounds / ĭ / and / ē /. Listen and repeat. / ĭ / / ē / beginning it in is interest interesting inflation middle rich did give credit window minimum beginning middle end eat need money eager clear he easy reason she erase reach see enough screen be people employee *English words do not end with the sound / ĭ /. Read the following words. rich reach lip leap sit seat list least pit Pete tin teen it eat did deed grin green Listen Up Listen. Your teacher will say one of the words in each pair. Circle the word you hear. 1. lick leak 4. hit heat 7. did deed 2. grin green 5. rid reed 8. rich reach 3. sit seat 6. list least 9. grit greet Read the Sentences. 1. Sit down, please. 2. At least the heat is gone. 3. Did you sit with the rich man? 4. Have a seat with Pete. 5. I can reach the money.

Savings Accounts: Tips for Saving Money Set Goals It takes commitment to save money. If you have a goal, it will help you to save money. You will have a reason to save. You will save money to reach your goal. Pay Yourself First Save a little money every month. Pay yourself just like you would pay a telephone bill or a gas bill. If you pay yourself first, it will be easier to save money. If you wait until the end of the month to see how much money you have left, you will probably not have anything left. It will be hard to save money. Use a Savings Account Open a savings account at a bank, a credit union, or a savings and loan. If your savings is at your house, it is easy to spend it. If it is in a bank, it will be there for you to withdraw if you need it, but it will make you think about if you really need it. It can also earn interest. Buy a Certificate of Deposit (CD) When you deposit money in a CD account, you agree to not withdraw it for a period of time. You can put it in for 3 5 months, 6 11 months, a year, five years... you decide. The more time you agree to put it in, the more interest you will be paid. If you have to withdraw it early, you will have to pay a fee (a penalty). If you leave it in for the time you agreed on, your money will make more money for you. A CD usually pays more interest than a savings account. Practice Directions. Fill in the blanks with the words below. reason spend deposit commitment first easier It takes to save money. Goals will give you a to save. When you pay bills, make a payment to yourself. If you pay yourself first, it will be to save. If your savings is at your house, it will be easy to it. If you put your money in a certificate of, it will earn more money for you.

Direct Deposit Helps to Save Money Maria could not save money. She wanted to save, but she never had money left at the end of the month. It was too hard to take money to the bank and deposit it, says Maria. But then my job offered direct deposit. Now I save money every month and it s easy, she says. It s not hard because now I never see the money. Now I have two savings accounts. One is for emergencies. Direct deposit is a plan that some companies have with a bank. With direct deposit, the paycheck is put into the employee s bank account. The employee decides how much will go into the checking account and how much will go into the savings account. The deposit is automatic. The deposit is made every payday. Direct deposit helps people because: Maria speaks to adult learners at a READ San Diego Conference. They do not have to go to the bank to deposit their paychecks. It s easier to save money when you don t see it. Some banks do not charge monthly fees to customers with direct deposit. Vocabulary Review Word direct deposit payday employee savings account paycheck checking account Draw a line to match these words with their meaning. Meaning the money someone gets paid at a job a bank account to save money a bank account to write checks a paycheck put into an employee s bank account someone who works for a company the day someone gets paid 1. Does your employer offer direct deposit? 2. If it does, with which bank is it offered? 3. What are the advantages (the good things) about using direct deposit?

Good Habits Start Young My children love to get money. Last year every time they got any money, they wanted to spend it right away. They spent every dime they got. Last year my son was nine years old and my daughter was thirteen. I wanted them to learn how to save money. We went to the bank and opened a savings account for them. They were very excited. They thought it was fun to have their own savings account. Now they are very excited to save money. They don t spend every dime they get. They like to put it in the bank. My son has $75 in his account. His goal is to save $100 to spend on our family trip next year. We are going to California. We are going to Disneyland. When my children want to buy something, they think about it more. They decide if they want to spend the money now, or if they want to wait to buy something at Disneyland. They are learning how to manage money. Something to Think About How did you learn to save money? Did anyone teach you how to save money? Where did you get your ideas for saving? Do you have children or grandchildren? What do you tell them about saving money? Write or draw your answers here.

Automated Teller Machines Some people do not go into banks. They bank at an Automated Teller Machine (ATM). An ATM is a machine, not a person, that takes your deposits and gives you money in your withdrawals. ATMs are convenient because you can do your banking at any hour of the day or night. An ATM is always open. You need a card from your bank to use an ATM. You need a PIN (Personal Identification Number) from your bank to use an ATM. When you put your card in the slot, the screen will show you what to do. You touch the screen to answer the questions. For example, If you want to know your balance, press here... If you want to make a deposit, press here... If you want to make a withdrawal, press here... Sometimes you pay a fee to use an ATM. The ATM will give you a receipt for your deposit or withdrawal. Keep the receipt and be sure to enter the amount in your check register. If the ATM charges a fee, be sure to enter it in your check register. The ATM fee is a type of withdrawal. Safety Tips 1. Do not use an ATM alone late at night. 2. If you use an ATM at nighttime, look for one that is well-lighted. 3. Make sure there is no one close behind you. 4. Always remember to take your card and your receipt. 5. Do not keep your PIN with your card.

Personal Action Plan 1. Rate your skills. Put a check mark ( ) in the box to show how much you know about banking. My Personal Action Plan 1. I have learned nothing a little some a lot about banking. 2. Write what you said that you wanted to learn from the last lesson. Then write what you learned. 3. Write one thing you will do this week to help you to continue to learn. (For example, call ask someone at your job if you can get direct deposit.) 4. Sign your name. 2. In the last lesson I said that I would learn I learned 3. This week I will Signature Date 5. Write today s date.

The Big Picture People in the United States save less money now than they did twenty years ago. Some people do not save any money. What About You? Do you save more money now than you did three years ago? Do you save less money? Will you be able to save more money next year? Why do you think this? According to researchers from the Federal Reserve Bank in Boston, the main reason that people save less money is because they have to pay more for health care, for day care, for banking services, etc. The cost of living increases each year. The paycheck does not. Wages are not raised to keep up with inflation. The minimum wage is not raised to keep up with inflation.

The minimum wage is not enough money to live on. Someone who makes minimum wage can live in poverty (be poor). Some cities have adopted a living wage law. Some cities want companies to pay a living wage, to their employees, not just the minimum wage. Some cities will not give business to a company that pays less than a living wage.

What Do You Think? Is there a living wage law in the city where you live? Do you think this is a good idea? What are the advantages? (What s good about it?) What are the disadvantages? (What s bad about it?) Write them here. Advantages Disadvantages What do you want to know about a living wage? Write your questions here.

Word List Write the new words from the lesson. English My Language To Think About List (Write what questions you have; what things you want to know more about.) To Do List (Write what you will do to learn more about your questions from this lesson.)