Check Writing Lesson

Check Writing
Basics

What you need to know about managing your checkbook and checking account

Created by: Mrs. Velazquez

What is a Check?

• A legally binding document that

says you will pay the amount

specified to the person that the

check is made payable to

• Therefore, writing a check knowing

you don't have the money to cover

the amount is considered a crime

• Mistakes happen and it is

possible to forget about other

activity on your account (you

may overdraft) but be careful

not to let it happen all the

time--it is called "hot checking"

(Chase Check Glitch = Check Fraud)

Who writes a check anymore?

• Currently, 4 out of 10 people use checks to

pay their bills although it isn't their

preferred way of paying bills

• Nearly 57% of checks written are for

household bills (mortgage, utilities, repairs,

etc.)

• Only 2% of the population prefers checks

for in-store transactions

• The average American writes three checks

per month

https://www.atlantafed.org/-/media/documents/banking/consumer-payments/research-data-reports/2020/02/13/us-consumers-use-of-personal-checks-evidence-from-a-diary-survey/rdr2001.pdf

Created by: The Business Bee

It's a generational thing

People who prefer paying by

check for purchases

Created by: The Business Bee

• This account is for frequent use (purchases, bills, and

transactions)

• Tied to your debit card to be used in stores (80% of people in

the U.S. have an active debit card)

•PIN (Personal Identification Number) protects your money

NEVER SHARE YOUR PIN. You will use this when making

purchases at the register or taking money out of an ATM.

• Use your debit card carefully when making online purchases

as it doesn't have the same protections as a credit card

(Much more complicated to get your money back if it is stolen

from your checking account)

• Your checking account is your most "liquid" account (easily

converted to cash)

• Most people do not earn interest on their checking accounts

• 93% of workers in the United States have their paychecks

Direct Deposited into their checking accounts

Things to Know About Your Checking Account

Created by: The Business Bee

Created by: The Business Bee

Checking Account Fees

• Monthly Servicing Fees

• Overdraft Fees

• NSF Fees (Insufficient Fund Fees)

• Paper Statement Fee

• Foreign Exchange Fee

• Account Closure Fee

Depending on your individual needs you can

get hit with additional banking fees which can

get expensive. It is important that you find

out what those potential fees are before you

chose your depository institution.

Potential Fees to ask

about

Created by: The Business Bee

$

For

Date

Dollars

Created by: The Business Bee

Pay to the

order of

1000

115454514 00008888 1000

Name

Streeet Address

City, State Zip Code

You must spell

out the dollar

amount and put

the cents as a

fraction

You must sign

your signature

(You cannot use

block letters

because that

can be easily

forged )

You put a

reminder of the

purpose of the

check

The check must

be made out to

(or for) the

person named

on it

As a check is a

legally binding

document. You

must include the

date.

Remember

Month/Day/

Year.

You must write out

the amout

payable in

numbers only in

the box. Don't

forget your cents!

Parts of a

Check
Will include

your name

and address

$

For

Date

950.00

Nine Hundred Fifty & 00/00
Dollars

Created by: The Business Bee

Pay to the

order of

1000

115454514 00008888 1000

Name

Streeet Address

City, State Zip Code

You must spell

out the dollar

amount and put

the cents as a

fraction --use a

line to fill in

space to the end

of the line to

prevent

someone from

changing the

amount

You must sign

your signature

(You cannot use

block letters

because they

can be easily

forged )

You put a

reminder of what

the check was

written for here

You must write

out who the

check is for (or

payable to)

As a check is a

legally binding

document. You

must include the

date.

Remember

Month/Day/

Year.

You must write out

the amout

payable in

numbers only in

the box. Don't

forget your cents!

Mayfair Apartments

October 3, 2022

Bizzy Bee

This is for a check for rent

made payable to Mayfair

Apartments for the amount

of $950.00

Rent for October

Will include

your name

and address

Reconcile activity in your account

• Helps you to know how much money is in

your account at a given time.

• Identify mistakes

• Accurate cash flow

• Identifies outstanding checks

• Most people use their banks'

reconciliation tools

Created by: The Business Bee

4

# or Code Date

Transaction Description

Withdrawal

Deposit/ Credit

Balance

1,589 63

996

09/01

Mayfair Apartments

950
00

639 63

DC

09/01

Wal-Mart

87
48

552 15

D

09/02

Paycheck

1,987 19

2,539 34

DC

09/03

Wawa

42
77

2,582 11

997

09/03

Electric Company

64 35

2,517 76

998

09/04

Internet Service

29 84

2,487 92

D

09/09

Interest from Bank

56

2,488 48

D

09/13

Deposit (Birthday Checks)

165 00

2,653 48

999

09/14

Wal-Mart

205
12

2,448 36

1

3
5

2

Check #, D= Deposit, DC= Debit Card, A= ATM

6

Created by The Business Bee

1

2

3

4

5

6

This line represents a decimal point

Code for the transaction or check number

The transaction will either be a deposit or a withdrawal and

will either be added or subtracted from the balance

Balance provides the amount of money that is

available after the transaction clears the

amount will change after every transaction is

added to the check register

Describes the transaction and where it took place

Date of the transaction

Key to understanding

your check register

The numbers correspond to the previous page

Multiple Choice

A debit card is

• Like an ATM card, but you can also use it to make purchases at retail locations and funds are wirthdrawn directly from your checking account

• The same as a credit card, buy now, pay later

• Similar to a gift card from a retail store, since you buy the debit card and replenish the funds once a month.

• Only used to get cash from an ATM

Multiple Choice

Which number appears at the far left, on the bottom of the check?

• Routing Number

• Checking Account Number

• Check Number

• None of these

Multiple Choice

What should you do after writing a check?

• Deposit it in the bank

• Tear it up and throw it away

• Give it to a friend as a gift

• Sign it and record the transaction in your checkbook register.

Multiple Choice

Which fee is associated with spending more than your account balance?

• Overdraft Fees

• Paper Statement Fee

• Foreign Exchange Fee

• Account Closure Fee

Multiple Choice

How many checks does the average American write per month?

• One

• Two

• Three

• Four

Multiple Choice

What is the purpose of writing the amount in words on a check?

• To prevent alterations or fraud

• To make the check look more official.

• To confuse the recipient.

• To save space on the check.

Multiple Choice

What should be done if a mistake is made while writing a check?

• Void the check and write a new one.

• Use correction fluid to fix the mistake

• Tear up the check and start over

• Erase the mistake and rewrite it

Multiple Choice

What is in the top right hand corner?

• The date

• The check number

• Both check number and date

• Your signature

Multiple Choice

Person who writes the check and has the bank account

• Debit Card

• Drawee

• Drawer

• Payor

Multiple Choice

Signature on the back of the check designating who to pay

• Debit Card

• Drawer

• Drawee

• Endorsement

Multiple Choice

What is a typical overdraft fee?

• $5
• $15
• $25
• $35