CHECKING ACCOUNTS LESSON OBJECTIVES: 1. Students will know what a checking account is and how to manage it. 2. Students will learn about different banking fees. 3. Students will label the parts of a debit card and practice basic check-writing skills. 4. Students will understand basic electronic banking services and ways to protect themselves from fraud. PREPARATION: Trainer: Review this guidebook and bring copies of the student handouts to the workshop. Mentor: Review this guidebook and bring a copy of this guidebook to the workshop. Student: Define the following service fees: ATM User Fee/Foreign ATM Fee, Overdraft Fee, Monthly Service Fee, and Minimum Balance Fee LESSON AGENDA: Time Breakdown Lesson Topic 5 minutes Welcome/Subject Intro 10 minutes Breakout 1: Recap and Checking Account Reflection 10 minutes Breakout 2: Parts of a Debit Card 15 minutes Breakout 3: Check Writing Basics 10 minutes Breakout 4: Electronic Banking Services and Safety 5 minutes Reflect/Review 2 minutes Closing Page 1
WELCOME/SUBJECT INTRODUCTION (5 minutes) TRAINER: Get the class settled and distribute the classroom materials. Do a round of introductions, if appropriate. Introduce today s topic and lesson objectives. Provide directions for Breakout 1 and instruct everyone to move into their small group. BREAKOUT 1: RECAP AND CHECKING ACCOUNT REFLECTION (10 minutes) MENTOR: Do a small group introduction, if appropriate. RECAP: Students share key takeaways and homework completed from the previous workshop. CHECKING ACCOUNT REFLECTION: Have students spend 4-5 minutes individually completing the Checking Account Reflection handout. Use the remaining time (approximately 2-3 minutes) debriefing. An answer key is provided on page 4. Be sure students understand what a checking account is and how it differs from a savings account. Note that the pre-work was to research the fees listed on the handout. TRAINER: Issue a one minute time check. Call the class together and lead a 1-2 minute debrief. BREAKOUT 2: PARTS OF A DEBIT CARD (10 minutes) TRAINER: Provide directions for Breakout 2. MENTOR: Students have 6-8 minutes to complete and discuss the Parts of a Debit Card handout. An answer key is provided on page 5. MODIFICATIONS: Visual Aids: Trainers can pre-make posters that represent the front and back of a debit card. Pass out these posters and markers to each small group so that students can label the different parts. Personal Debit Cards: If student have a debit card, they can pull it out and better familiarize themselves with the information listed on the card. MENTOR TIP: Ask students to recall the difference between a debit card and ATM card answer: you can purchase items with a debit card (from Savings Account module). Emphasize the importance of NOT overdrafting. TRAINER: Issue a one minute time check. Call the class together and lead a 1-2 minute debrief. BREAKOUT 3: CHECK WRITING BASICS (15 minutes) TRAINER: Provide directions for Breakout 3. MENTOR: Students have 12 minutes to complete and discuss the Check Writing Basics handout. An answer key is provided on pages 6-7. Review the tips below once students fill out the sample check: Always write neatly in blue or black ink. Save all receipts and record these expenses in a check register or match them against the transactions provided in your online account. VOID checks when you make a mistake; shred and dispose of the check safely. Page 2
MODIFICATIONS: Visual Aids: Trainers can pre-make posters that represent the front and back of a check. Pass out these posters and markers to each small group so that students can label the different parts. TRAINER: Issue a one minute time check. Call the class together and lead a 1-2 minute debrief. BREAKOUT 4: ELECTRONIC BANKING SERVICES AND SAFETY (10 minutes) TRAINER: Provide directions for Breakout 4. MENTOR: Students have 6-8 minutes to complete and discuss the Electronic Banking Services and Safety handout. An answer key is provided on page 8. Students may require guidance through the various banking services. Encourage them to share what they know or have heard and correct any misconceptions. Time permitting, share your experience with online banking and how it helps you manage your finances. TRAINER: Issue a one minute time check. Call the class together and lead a 1-2 minute debrief. REFLECT AND REVIEW (5 minutes) TRAINER: Instruct students to complete the Student Reflection handout. MENTOR: Ensure students individually complete the handout. Facilitate a 2-3 minute debrief around what students learned or how they can apply today s content. Sample questions include: o What information resonated with you about today s workshop? o What information was new to you? o What information was most helpful to learn about? Why? o What knowledge can you pass on or share with family members? TRAINER: Provide a one minute time check. Call the class together and have 2-3 students share their learning with the class. CLOSING (2 minutes) TRAINER: Wrap up the workshop and prepare students for the next session. HOMEWORK: Talk with parent(s) about how they manage their checking account. If parent(s) do not have a checking account, students will explain to them what it is and how it works. Point students to this section on their Student Reflection handout. Share the topic(s) of the next workshop and PRE-WORK. Thank Mentors for attending today s workshop. Instruct students to put their handouts in their binder or a secure place before leaving. Page 3
Appendix CHECKING ACCOUNT REFLECTION (Answer Key) Directions: Complete the handout below individually and share your answers with your small group. Write down words that come to mind when you hear checking account. Some examples: debit card check balancing a check book check register ATM balance overdraft transaction Do you or your parents have a checking account? What is a checking account and how does it differ from a savings account? A checking account is a deposit account used to manage your daily spending, such as paying bills. Money generally flows in and out of a checking account more frequently than a savings account. Unlike savings accounts, checking account do not accrue interest. Both accounts allow you to do online banking and access funds via an ATM. What do you think are some advantages to having and using a checking account? Some examples include: 1. Your money is safe 2. Money can be easily accessed through online banking services or via ATM 3. Spending can be tracked using various budgeting tools on the bank s website 4. Access various banking services including direct deposit, check cashing, etc. Your homework assignment was to define these common bank fees. Provide a one-sentence definition below: 1. ATM User Fee/Foreign ATM Fee: A fee for using an ATM that is not affiliated with your bank 2. Overdraft Fee: A fee for spending more money that you have in your account 3. Monthly Service Fee/Maintenance Fee: A fee associated with having an account 4. Minimum Balance Fee: A fee charged when the account balance drops beneath the minimum as determined by the financial institution Page 4
PARTS OF A DEBIT CARD (Answer Key) Directions: Identify the parts of a debit card in the space provided. If you have a debit card, pull it out so you can get familiar with the information on your card. FRONT: (A)Bank of Vero www.bankofvero.com BACK: (B)1234 5678 9101 1213 (C)Customer 2005 (D)Good Thru 12/12 Since Last Day of For Customer Service: 555-891-0109 (G) (H)191 Authorized Signature *Not Valid Unless Signed (E)Vero K Cruz (F) Bank of Vero (I)TTY: 1-800-555-5555 From Outside the US call collect at 555-234-2532 Label the Parts of a Debit Card: A. Bank Name B. Debit Card Number: Unique 16-digit number assigned to your debit card C. Issue Date: Year that you started using the bank s services D. Expiration date: A new card is automatically mailed to you before your expiration date E. Cardholder s name F. Visa or Mastercard Logo: The logo on your card indicates that your card can be used wherever Visa or Mastercard debit cards are accepted G. Signature: Sign here as soon as you activate your card to protect yourself from fraud H. Card Security Code (CSC) aka Card Verification Value (CVV), Card Verification Data (CVD), Card Verification code (CVC): A unique number assigned to your card to verify that it is in your possession when making transactions over the phone, fax, internet, or mail. I. Teletypewriter (TTY): A type of telephone used for the hearing impaired When you use your debit card to make purchases, you will be asked to enter your Personal Identification Number (PIN). Unlike credit cards, debit cards will immediately deduct the value of your purchase from your bank account. Make sure you have enough money in your account to cover your expenses and avoid paying overdraft fees! Page 5
CHECK WRITING BASICS (Answer Key) Directions: Identify and label the parts of a check in the space provided. Proceed to writing a check, endorsing a check, and completing a register. (A) Maria Cruz (B) 101 911 Express Way (C) 9/1/2014 Monarch Village, CA, 55555 Date (D) Pay to the Order of Subway (E) $ _7.55 (F)_Seven and 55/100 ---------------------------------------------------------------------------------------------------- Dollars (G) Bank of California (H) For _lunch (I) Maria Cruz (J) :156400081: (K) 1234567891 Label the Parts of a Check: A. Checkbook owner s name and address B. Check Number: Each check has a unique reference number to help you track your payments C. Date: Date the check was written include the month, day, and year D. Payee: Name of the company or person you are paying E. Dollar amount of the check: Written out in numbers F. Dollar amount of the check written out in words G. Bank Information: The name of the bank that holds your account H. Memo: A notes section where you can log what the check was used for I. Signature: Signing your check authorizes the money to be released from your account J. Routing Number: The unique number of the bank that issued you your check K. Account Number: The 10-digit bank account number that is unique to your account Now, fill in the check using the following scenario: On September 1, 2014, Maria ate lunch at Subway and spent $7.55. Complete the check as Maria would have for her purchase. Page 6
SCENARIO: That same day, Maria received her paycheck from her waitressing job. The check was in the amount of $205.50 Maria decides to deposit her check into her checking account. She (1) endorses the bank of the check, (2) writes For Deposit Only, and (3) writes her bank account number of 1234567890. Complete the back of the sample check in the space provided. Endorse Here: X Maria Cruz (1) For Deposit Only (2) 1234567890 (3) DO NOT SIGN/WRITE/STAMP BELOW THIS LINE FOR FINANCIAL INSTITUTION USAGE ONLY REVIEW THE PARTS OF A CHECK REGISTER BEFORE COMPLETING THE SCENARIO. SCENARIO: Maria immediately logs her transactions in her check register when she returns home. Record Maria s transactions from the day in the register below. (A) Check Number (B) Date (C) Transaction Description (D) Payment/ Withdrawal (E) Deposit/ Credit (F) Balance: $100.00 101 9/1/14 Subway $7.55 $92.45 9/1/14 Deposit Paycheck $205.50 297.95 A. Check number: Number of the check that was written B. Date: Date the check was written/date of transaction C. Transaction Description: Enter the name of the payee (company/person you paid) D. Amount of payment/withdrawal E. Amount of deposit/credit F. Balance: Current amount of money in your account Page 7
ELECTRONIC BANKING SERVICES AND SAFETY (Answer Key) Directions: Financial institutions offer many different electronic services including access to ATMs, banking by phone, and online banking to help customers manage their finances. Check off the different features that each one provides. Then identify which tips help prevent fraud and identity theft. Conduct Banking Transactions Review Banking Transactions Obtain Cash Pay Bills Keypad or Voice Activated Requires a PIN ATM X X X X Bank by Phone Online Banking Access a Customer Service Representative X X X X X Requires Internet Access Requires a Username and Password X X X X X X Online Banking Allows You to: Direct Deposit Transfer Money Between Your Accounts Transfer Money to a Third Party Make Regular Transactions/Automatic Bill Pay Access Online Banking Assistance Access Budgeting and Money Management Tools Other? You can never be too safe with your financial information. Read the following statements and identify whether it is a smart decision: Send financial info through email Use one low-limit credit card for purchasing items online Protect your social security number and PIN Click on email hyperlinks that are sent to you from unknown sources Review your credit report every 2-3 years to make sure all information listed is accurate Shred old financial documents, including bank statements and old credit or debit cards Keep your virus protection, firewall, and spyware up-to-date Smart Decision (Yes/No) No Yes Yes No No Yes Yes Page 8