Building: Knowledge, Security, Confidence

Check It Out!All About Using and Writing Checks

2

What We Will Learn Today

• Today we will learn how to use checks, write checks, and record checks in our check registers.

3

Checking Accounts

When you open a checking account at the bank, you can write checks and use a debit card to:

• Pay bills

• Make purchases

4

What is a Check?

• A check is a written contract between you and your bank.

• When you write a check, you are asking the bank to take money from your account and give it to someone else.

5

Using a Checking Account is Convenient

• Gives you quick and easy access to your money

• Lets you “direct-deposit” payroll and other checks

• Eliminates the need to carry a lot of cash

6

Better Money Management

• Keep a record of “transactions”

• Build a positive relationship with your bank

Having a checking account lets you:

7

Steps to Writing a Check

Make sure you have

enough money in your

account!

1. Write the check

2. Record the transaction

in your check register

8

Your Checkbook

Contains:

• Checks

• A Check Register

• Deposit slips

9

How To Write A Check

http://www.moneyinstructor.com/in/

inwritecheck.asp

http://www.moneyinstructor.com/in/

inwritecheck.asp

10

Sample Check

1 38

64 5

10 9

27

1: Today’s date2. Payee3. Amount in numbers4. Amount in words5. Reminder6. Your signature7. Your name & address8. Check #9. Name of your bank10. Your checking account number

11

Sample Checks

2/26/20XX

Best Tees 19.75Nineteen and 75/100

Your signatureshirt

12

Activity: Writing A Check

Complete Activity

– Follow directions to complete this activity

13

You can also use a check to get cash out of your checking account. • Write “CASH” or your name in the “Pay to the Order of” area on your check. • But, be careful! A check you write out to cash can easily be cashed by anyone!

Checks Made Out to “Cash”

14

Endorsing a Check

DO NOT WRITE, STAMP OR SIGN BELOW THIS LINERESERVED FOR FINANCIAL INSTITUTION USE *

ENDORSE HERE

15

Check Writing Tips

Write in blue or black ink. Write clearly. Remember to record each check you write in your check register.

16

What if you make a mistake?

If you make a small mistake when writing a check, cross out the incorrect information, write your initials above it, and then write the correct information.

If you make a big mistake when writing a check, write “VOID” across the entire check, rip it up, or shred it, and throw it away. Write a new check.

Remember to entire all checks – even VOIDED checks – in your check register.

17

Your Check Register

Use your check register to keep

an accurate record of all your

checking account transactions

including:– Checks & ATM transactions– Interest – Other bank charges

18

http://www.moneyinstructor.com/in/

incheckbook.asp

How to Use a Check Register

19

Let’s Practice Using a Check Register

20

Words to Remember

Payee:  The party that receives the check. 

Payor:  The party that writes the check (to the payee). 

Check Register:  A booklet that is used to keep a record of all your checking related transactions, including checks written and deposits.

 Endorse a Check:  When the payee signs their name on the back of a check to cash or deposit the check.

 Balance:  The amount of money currently in your checking account.

 Overdraft or Non-sufficient Funds:  When you write a check for

more money than you have in your account.

21

Checking Account Statement

• Checks you wrote

• Withdrawals and deposits

• Debit card purchases

• Bank fees

Each month your bank will send you an account statement:

22

“Reconciling” Your Account

Banks can make mistakes!

You should reconcile your check register with

your monthly checking account statement each

and every month to make sure your

balance is correct.

23

“Bad” or NSF Check

• A check you write when there isn’t enough money in your checking account to cover it

• Also called a “bounced check”

24

Consequences of Writing Bad Checks

• Bad check fees

• Bank closes your account

• Merchants may not accept your checks

• Your credit will be impacted

• Maybe jail!

25

Check It Out!

• The benefits of using a checking account• How to write a check• How to use a check register• Why you should not write a “bad” check

Congratulations! Today we have learned:

26

Thank you!Thank you!

American Debt Counseling, Inc.American Debt Counseling, Inc.1 888 DEBT USA1 888 DEBT USA

www.americandebtcounseling.orgwww.americandebtcounseling.org