Objectives: 1.Explain the purpose of checking and saving accounts. 2.Prepare checks and maintain a checkbook register. Warm Up: Record any expenditures.

Objectives:

1.Explain the purpose of checking and saving accounts.

2.Prepare checks and maintain a checkbook register.

Warm Up:

Record any expenditures since last class in your November budget.

Agenda:

1.Warm Up2.Finish grocery store activity3.Ch.5 Vocab.4.Video

Daily Information (c,h) Nov.10

Objectives:



Warm Up:

Why do people put money in a checking or savings account?

*Record expenditures

*Partner activity (withdrawals)

Agenda:

1.Warm Up2.Ch.5 Vocab.3.Banking P.P.4.Student notes5.Balancing a check book activity

Daily Information (a) Nov.10

Objectives:



Warm Up:




Agenda:

1.Warm Up2.Finish the grocery store activity3.Video (ch3,sec2)4.Ch.5 Vocab.5.Banking P.P.6.Student notes7.Balancing a check book activity

Daily Information (d) Nov.10

Assignments

• Finish the grocery store activity from last class

• Complete vocabulary for chapter 5

Objectives:



Warm Up:


*Take out vocab.

*Turn in Grocery Store activity

Agenda:

1.Warm Up2.Video (ch2,2.1)3.Ch.5 Vocab.4.Banking P.P.5.Student notes6.Balancing a check book activity7.Video (ch3,2.1)

Daily Information Nov.11

Objectives:



Warm Up:




Agenda:



Objectives:



Warm Up:


Agenda:



Objectives:



Warm Up:

How much money does Dave Ramsey suggest that you save in high school for emergencies?


Agenda:

1.Warm Up2.Banking P.P.3.Student notes4.Balancing a check book activity5.Video (ch3,2.1)


Why Open a Checking or Savings Account?

• Safe place to keep money (Insured by the FDIC)• Both are demand deposit accounts

– Easy access to money– Many options to withdrawal money

• Saving accounts are for the accumulation of money

• May be interest earning

Cash Management The daily routine of handling money to take

care of individual or family needs

– Effective cash management includes having money available for:

• Living expenses

• Emergencies

• Savings

• Investing Slide 10

Cash Management ToolsTool Interest Special Features

Checking Account•Demand Deposit

1.5% •Checks used in place of cash•Easy access

Saving Account•Demand Deposit

2.3% •Temporary holding place•Easy access

Money Market Account•Demand Deposit •Type of savings Acc.

2.6% •Minimum balance•Tiered interest rates•Limited withdrawals

Certificate of Deposit 4 – 5.4% •Penalty for early withdrawal•Not easy to access funds

Savings Bond 4 – 5.4% •Tax advantages•Not easy to access funds

Checking Account Features

• Minimum balance requirements

• Charge transaction fees

• Cash back options

• Limited number of checks written monthly

• Overdraft Protection (NSF)

**Reduces the need to carry large amount of cash

Opening a Checking Account

• What will I need?– Money! ($50 or $100)– Personal information– Identification – Provide an official signature

• What will I be given?– Checkbook– Checkbook register

Withdrawals and Deposits

• A withdrawal (-) involves taking money from your account.o Writing checks o Using debit cards

• A deposit (+) of money can be made to your account.o Endorsing checkso Direct deposit

**Banks will not hold postdated checks and process them at a future date.

Objectives:



Warm Up:


Agenda:

1.Warm Up2.Vocab.3.Banking P.P.4.Student notes5.Balancing a check book activity6.Video (ch3,2.1)


Endorsing A Check

Signature on the back of the check approving it for deposit. Checks must be endorsed to be deposited

Three Types

• Blank• Restrictive• Special

**Safest way to endorse the check is to wait until going to the bank to deposit

Blank Endorsement

• Receiver of the check signs his/her name

• Anyone can cash or deposit the check after it has been signed

Endorse Here

X Sally Smith_________

DO NOT WRITE, STAMP OR SIGN BELOW THIS LINE. RESERVED FOR FINANCIAL INSTITUTION USE________________________________

Restrictive Endorsement

• More secure than blank endorsement

• Receiver writes

“for deposit only” above his/her signature– Allows the check

only to be deposited

Endorse Here

For Deposit Only – Acct. 654986


DO NOT WRITE, STAMP OR SIGN BELOW THIS LINE. RESERVED FOR FINANCIAL INSTITUTION USE_______________________________

Special Endorsement

• Receiver signs and writes “pay to the order of (fill in person’s name)

• Allows the check to be transferred to another person– Also known as a

third-party check

Endorse Here

Pay to the order of Mike Smith


DO NOT WRITE, STAMP OR SIGN BELOW THIS LINE. RESERVED FOR FINANCIAL INSTITUTION USE_______________________________

Check 21

• Check clearing for the 21st Century Act– Current trend that changes how money is

withdrawn and deposited into accounts

How Check 21 Works

• Prior to Check 21– Paper checks physically moved from place

to place

• After Check 21– Paper checks scanned to computer to

create a “substitute check” (truncated)– Substitute check is transferred

electronically from place to place

Objectives:



Warm Up:

Explain the difference between the three different types of endorsement.


Agenda:



Objectives:



Warm Up:



Agenda:



Objectives:


2.Perform a bank reconciliation.

Warm Up:

•Go to the following website

www.socrative.com

•Enter the class number:

c2e084ee

•Enter your FULL NAME

•Begin

Agenda:

1.Warm Up2.Check Register3.Banking P.P.4.Student notes5.Bank Rec. activities6.Investment calculations

Daily Information Nov.14 (c)

Objectives:



Warm Up:

•Explain the following terms:

– Non-sufficient Funds

– Bounced Check– Overdraft

Agenda:


Daily Information Nov.14 (d,h)

Objectives:



Warm Up:




Agenda:

1.Warm Up2.Banking P.P.3.Student notes4.Bank Rec. activities5.Investment calculations

Daily Information Nov.17 (c,a)

Checkbook Register

A way to track your account transactions

Writing a Check

Sally Smith500 Great StreetYourtown, NJ 55555

93-456-954045086244786

503

Date: 9/6/2006

Pay to the

Order Of The Pizza Place $ 9.50

_Nine dollars_------------------------------------------------50/100_ DollarsGuardian Angel Banking423 South 15th

Yourtown, NJ 55555

Memo __Pizza_ ___ Sally Smith____0123456789 : 1234567890 : 503

Monthly Statement

• Comes from your bank

• Lists information about each transaction during the period

• Lists the current balance during the period

Reconcile a Bank Statement

Bank reconciliation - the process of adjusting the checkbook register and bank statement so they agree

• Consider the following:o deposits in transito outstanding checkso transposition errors










Objectives:



Warm Up:




Agenda:


Daily Information Nov.14 (d,h)

Objectives:



Warm Up:

What is the importance of performing a bank reconciliation??

Agenda:

1.Warm Up2.Corrections3.Banking P.P.4.Student notes5.Bank Rec. activities6.Investment calculations

Daily Information Nov.17 (h)

Objectives:



Warm Up:

*Check your grade in infinite campus

*Record any expenditures in your budget

Agenda:

1.Warm Up2.Corrections3.Banking P.P.4.Student notes5.Investment calculations6.Study Guide7.Review Games

Daily Information Nov.18 (a)

Objectives:



Warm Up:

*Check your grade in infinite campus

*Record any expenditures in your budget

Agenda:

1.Warm Up2.Corrections3.Banking P.P.4.Student notes5.Investment calculations6.Study Guide7.Review Games

Daily Information Nov.18 (h)

Liquidity

How quickly and easily an asset can be converted into cash. Liquid assets are important for emergency situations

Investors should:– Invest in both liquid and non-liquid tools

Liquidity

Checking Account

Savings Account

Money Market Account

Certificate of Deposit

Savings Bond

Most Liquid

Least Liquid










Certificate of Deposit (CD)

• Time Deposit account

• Pays a fixed rate of interest for a specified length of time

• Higher interest than a savings account

• Penalty for withdrawing money prior to the specified length of time

**Good option if you do not need immediate access to money

U.S. Savings Bond

• Discount bond (pay less than face value)– Pay $50 (discount) for a $100 bond (face value)

• Issued by the federal government– You are loaning money to the government

• Long-term saving option

Watch Your Money Grow!

How can you grow your savings?

Through…

• Principal

• Simple interest

• Compound interest

Computing Simple Interest

Simple Interest: interest computed on principal once during a certain time period

• P = amount of money invested

• R = interest rate

• T = time period that money will be set aside

Simple Interest

Interest (I) = Principal (P) × Rate (R) × Time (T)

= $1,000 × 6% annual rate × 6 months

= $1,000 × 0.06 × 6/12 = $30

Computing Compound Interest

Compound Interest: interest earned on both the principal and previously earned interest

Quarterly CompoundingAnnual Interest Rate 6%

Beginning Rate EndingYear Balance 6% Quarter Balance

1 2 3 4

1 $100.00 0.015 $1.50 $1.52 $1.55 $1.57 $106.14

2 $106.14 0.015 $1.59 $1.62 $1.64 $1.66 $112.65

3 $112.65 0.015 $1.69 $1.72 $1.74 $1.77 $119.57

Future Value of Money

Rule of 72

How long will it take to double my money?

• Divide annual interest rate into 72

Example: if you invest $50 at 6% interest, your money will grow to $100 in 12 years

( 72 ÷ 6 = 12 years)

Available Banking Services

• Safe deposit boxes

• Overdraft protection

• ATMs

• Cashier’s checks

• Financial advising

• Loans

• Internet banking

• Bank cards

Costs of Banking

• Monthly account fees

• Nonsufficient fund fees

• Special service feeso Examples: stop

payment, cashier’s check, money order

• ATM fees

• Inactive account fees

What Are Consumer Responsibilities?• Maintain your balance

o Avoid writing bad checks.

• Monitor your accounto Reconcile your bank

account.• Know your rights

o Be aware of consumer protection laws.

Objectives:

1.Prepare a bank reconciliation

2.Explain how you can grow your savings with interest

Warm Up:


Write this down.

Agenda:

1.Warm Up2.Bank reconciliation P.P.3.Follow along notes4.Chapter 5 activity packet

Daily Information 3/25/13

Bottom Line/Exit Ticket

• Go to the following website

– www.socrative.com• Enter the class number: c2e084ee• Enter your FULL NAME• Begin

Objectives:



Warm Up:

*Quiz Today!!

Take out your study guide

Agenda:

1.Warm Up2.Ch5 Quiz3.Movie


Objectives:



Warm Up:

*What is the most interesting thing you learned in this chapter?

Agenda:

1.Warm Up2.Review Games3.Study Guide

Daily Information Nov.20 (c,h)

Objectives:



Warm Up:

*Quiz Today!!

Take out your study guide

Agenda:

1.Warm Up2.Ch5 Quiz3.Movie


Objectives: 1.Explain the purpose of checking and saving accounts. 2.Prepare checks and maintain a checkbook register. Warm Up: Record any expenditures.

Documents

warm upbanking p

purpose of checking

warm upch

checkbook register

warm upvideo ch2

student notesbalancing

check book activityvideo

savings account