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Lesson 5-1: Checking AccountsHigh School Financial Planning Program
©2014 NEFE High School Financial Planning Program | www.hsfpp.org
Display this slide lesson to introduce the lesson.
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High School Financial Planning Program Lesson 5-1: Checking Accounts
©2014 NEFE High School Financial Planning Program | www.hsfpp.org
Give students a two- or three-minute time limit to brainstorm as a class the different
ways they could shop and pay for a new music. Create two columns on the
black/whiteboard, one for “shop” and one for “purchase.” Document the lists
students create. Prompt students so brainstorming lasts the full two or three minutes.
If they start running out of ideas halfway through, encourage them to think of places
to buy used items. (from a friend, yard sale, discount store, library sale, online, etc.)
EXTENSION: Follow-up by polling students to see how many of these different places to
shop and payment methods they have used themselves. This will help give you a sense of
previous experience, potential classroom “experts,” and which security/fraud topics you
should cover later in the Module.
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High School Financial Planning Program Lesson 5-1: Checking Accounts
©2014 NEFE High School Financial Planning Program | www.hsfpp.org
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Preview the Learning Outcomes in the Student Learning Plan. By the end of this
lesson, the students should be able to demonstrate how to use a checking account.
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High School Financial Planning Program Lesson 5-1: Checking Accounts
©2014 NEFE High School Financial Planning Program | www.hsfpp.org
Pages 3-4
Introduce Jason and Brianna as the young people featured in the Student Guide. The
students will follow Jason and Brianna as they learn about using financial services to
handle their payments.
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High School Financial Planning Program Lesson 5-1: Checking Accounts
©2014 NEFE High School Financial Planning Program | www.hsfpp.org
Student Guide, pages 4-7
Use the information on pages 4-5 to discuss reasons people might choose to pay for
goods and services in ways other than using cash. Use this to transition into the
benefits and potential negatives of using a checking account for purchases (page 6).
Explain that checking accounts are considered types of demand deposit accounts
because the account funds are accessible to the customer without any advance
notice to the bank or credit union.
Either as a whole class or in small groups, have the students brainstorm responses to
Activity 5.1: Proof of Payment.
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High School Financial Planning Program Lesson 5-1: Checking Accounts
©2014 NEFE High School Financial Planning Program | www.hsfpp.org
Student Guide, pages 8-10
Explain that when a person writes a check or makes an electronic payment with
checking account funds, s/he is ordering the bank or credit union to immediately
transfer funds to someone else. When the check is signed or debit card used, the
payer (owner of the checking account) enters into a contract to agree to pay the
designated amount when the payee (person receiving payment) deposits the check or
accepts the electronic payment.
Revisit responses from the opening activity to point out that many checking account
payments are made electronically, whether online, by phone, or with a debit card.
However, there will be occasions when someone may need or choose to pay with a
paper check. Use the slide and information on pages 8 and 10 to point out the
information that is displayed on every check. Stress that a check needs to be filled
out clearly, accurately, and in permanent ink to avoid any opportunities to
misinterpret data or to prevent fraud. Use Activity 5.2: Check Writing 101 for
students to practice writing checks. [An example of the completed activity are shown
on the next slide.]
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High School Financial Planning Program Lesson 5-1: Checking Accounts
©2014 NEFE High School Financial Planning Program | www.hsfpp.org
Student Guide, page 9
Use Activity 5.2: Check Writing 101 for students to practice writing checks. An
example of the completed activity are shown on this slide.
ALTERNATE ACTIVITY: Arrange for the students to complete the Check Writing tutorial on
the Goodwill Community Foundation education website,
www.gcflearnfree.org/moneybasics/6. Additional tutorials are available on this site for
additional practice.
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High School Financial Planning Program Lesson 5-1: Checking Accounts
©2014 NEFE High School Financial Planning Program | www.hsfpp.org
Student Guide, pages 16-18
Remind the students that they need to have sufficient funds in their checking
accounts to have money available for payments. A checking account is not like a
credit card account. Rather, they will need to ensure that they deposit enough money
into their accounts to have money available to pay on demand, whether by check or a
debit card. Use the slide to illustrate how to fill out a deposit slip. In some cases of
making a deposit at an ATM, a deposit ticket might not be needed. Regardless, point
out that every deposit will require the depositor to designate the account receiving the
funds and the amount when making a deposit.
Use Activity 5.3: Make the Deposit so students practice filling out a deposit slip.
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High School Financial Planning Program Lesson 5-1: Checking Accounts
©2014 NEFE High School Financial Planning Program | www.hsfpp.org
Student Guide, pages 17-18
Show examples of endorsements that are written on the back side of a check, behind
the “Pay to the Order of” phrase written on the front side of the check. Point out that
the bank receiving the endorsed check will match the endorsement with the
designated payee on the front of the check.
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High School Financial Planning Program Lesson 5-1: Checking Accounts
©2014 NEFE High School Financial Planning Program | www.hsfpp.org
Student Guide, pages 14-16, 18-19
Read about the problem Jason had keeping track of his checking account transactions.
(Student Guide, pages 14-16). Stress that an account holder is responsible for keeping track
of how much money is really available in the checking account. Demonstrate how to keep track
of payments from and payments to a checking account as you record Jason’s transactions.
Note that his ending balance is different from the bank’s ending balance because he recorded
the $25 check payment which was not accepted by the bank. Arrange for the students to
practice tracking checking account transactions as they complete Activity 5.4: Keeping Track.
Slide 11 shows a sample answer key.
Note: Point out examples of codes often used by individuals or banking institutions to
describe the transaction type. The codes used in this slide example are included in the list
below. However, individuals might choose to create their own coding system based on
personal preferences and what seems logical for their own record keeping habits and what is
used by their banking institution.
d/c = debit card payment [#] = check number
fee = banking institution fee ACH w/d = automatic clearing house withdrawal
w/d = withdrawal POS w/d = point-of-sale withdrawal
dep = deposit ATM = automated teller machine transaction
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High School Financial Planning Program Lesson 5-1: Checking Accounts
©2014 NEFE High School Financial Planning Program | www.hsfpp.org
Student Guide, page 20
Arrange for the students to practice tracking checking account transactions as they
complete Activity 5.4: Keeping Track. This slide shows a sample answer key.
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High School Financial Planning Program Lesson 5-1: Checking Accounts
©2014 NEFE High School Financial Planning Program | www.hsfpp.org
For additional practice, arrange for students to work independently or in pairs to
complete the Balance Zoe’s Bucks task. This slide shows a sample answer key.
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High School Financial Planning Program Lesson 5-1: Checking Accounts
©2014 NEFE High School Financial Planning Program | www.hsfpp.org
Student Guide, pages 19-21
Point out the value in comparing your checking account records with the bank
information. Explain how to reconcile an account as a way to compare the bank
statement with an individual’s records. Stress the importance of routinely reconciling
each account—at least once a month—to ensure that account records are complete
and accurate.
Have the students complete Activity 5.5: Does it Balance? to verify Jason’s account
balance.
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High School Financial Planning Program Lesson 5-1: Checking Accounts
©2014 NEFE High School Financial Planning Program | www.hsfpp.org
This is a good time to provide tips to find math errors when reconciled amounts don’t
match.
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High School Financial Planning Program Lesson 5-1: Checking Accounts
©2014 NEFE High School Financial Planning Program | www.hsfpp.org
Student Guide, page 21
Assign the students to independently complete Challenge 5-A: Use a Checking
Account.
EXTENSION: Have students create fictitious checking accounts that track deposits and
withdrawals for two weeks’ time. Tell the students to balance their own checking account
records. Then instruct students to become a two-person team in a financial relationship
(roommates, married, parent and teen, business partnership, etc.) and balance the joint
checking account.
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High School Financial Planning Program Lesson 5-1: Checking Accounts
©2014 NEFE High School Financial Planning Program | www.hsfpp.org
Ask the students to reflect on their preferred method of payment and give reasons for
their preference.
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High School Financial Planning Program Lesson 5-1: Checking Accounts
©2014 NEFE High School Financial Planning Program | www.hsfpp.org
High School Financial Planning Program Lesson 5-1: Checking Accounts
©2014 NEFE High School Financial Planning Program | www.hsfpp.org 17