Money_Bag.jpgChecking Account Management

Now that you have chosen a checking account, it is time to start paying your bills. You learned in the "Choosing A Checking" lesson using a checking accounts is a convenient way to pay your bills and make purchases.

With your checking account your can:
  • Pay bills online using the Internet.
  • checks that can be sent by mail or used in stores.
  • Pay for purchases using a Debit Card.
  • Transfer money electronically through your bank to make payments.

Maintaining a checking account takes some responsibility. You must make sure that you record and document every bit of money going into your account and going out, no matter what form it takes.


In this lesson you will learn:
  • Terms associated with a checking account.
  • How to properly write a check.
  • How to complete a deposit slip.
  • How to record transactions in an electronic check register.
  • How to reconcile your account with the bank.

Graded Assignments and Activities Check List
Assignment A - Vocabulary
Assignment B - Maintaining a checking account
Assignment C - Why is it important to balance a checking account?
Assignment D - Bank reconciliation and conformation.

Understand the Language of Checking Accounts

Before you get started you must know terminology associated with a checking account.

Activity 1: Vocabulary.

dollar_sign.jpgAssignment A:

You will use the Vocabulary Sheet from Google Docs to define terms. Use the search engine below to help you locate your definitions. When finished, make sure your name is part of the file name and place it in your Personal Finance folder in Google Docs. Send me an email to let me know you have finished this activity. Put "Checking Vocabulary" in the Subject line.


Checking Account Demo Part 1

Checking Account Demo Part 2

Using Your Checking Account

Now you are ready to begin using your checking account. The following videos and activities will give you all of the information you will need to properly use and maintain your checking account. Do each of the following activities.

Before you are able to start paying your bills, you must place money into your checking account. There are various ways to put money into your checking account, direct deposit, from an ATM, or in person at your local bank.

With direct deposit, money goes directly from your employer to your checking account. If you are depositing money into your account from an ATM or in person at the bank you will need to fill out a deposit slip that will accompany your check or cash. That deposit slip has information about your account so that the the funds go to the right place. Next you will learn how to complete a deposit slip. Deposit slips may look different depending on your bank and where you bought your checks, but they all have the same information.

Activity 2: Completing a Deposit Slip

Watch the following video. You may want to refer back to this video later when you are asked to complete a deposit slip.

  1. Write the date on the slip.
  2. List what the money looks like that you are handing the teller separately in the spaces provided for each. Example: Cash, coins or checks.
  3. Get a subtotal of the amount you are handing the teller.
  4. If you would like to get cash back, write that amount in the box that says "Less cash back". If you are getting cash back your must sign your deposit ticket.
  5. Write the amount you want to put into your checking account next to the word "TOTAL"

Activity 3: How to write a check

Next you will learn how to properly write a check. View the following video. You may want to watch it again later when you begin to use your checking account.

  1. Write the date.
  2. Write the person's or company you are paying on the "Pay to the Order of" line.
  3. Write the amount in figures. Make sure to start as close to the $ to keep someone from changing the amount.
  4. Write the amount in words. Always start with a capital letter. The word "and" represents the decimal. And, completely fill in the line.
  5. Sign the check

Activity 4: Completing a Check Register

As you have learned from your vocabulary, a check register is very important part of your checking account. You must always be aware of how your checking account is being used. Keeping a good record will prevent you from "bouncing" checks and will also help you itemize your payments for tax purposes.

Watch the following videos on how to record transactions in your checking account. You may want to view this video again when you do the next activity.

Writing a Check and Recording in a Check Register

How to Properly use a Check Register

  1. Write the check number and date in the proper columns.
  2. Write who the check is payable to, and if room give a description of the transaction.
  3. Write the amount of the check in the "debit" or "payment" column.
  4. Subtract the amount of the check from your balance column on the register.

How to enter transactions where checks are not written.

Most of the transactions you record in your check register will be from entries other than checks you write. Here are tips to follow when recording these items.

1. Use a letter abbreviation in the check number column to define the type of transaction. Here are some you can use:
a. D = Deposit
b. AP = Automatic payment. Used for payments that don't require a written check and you have deducted from your account. Could be used for paying bills online.
c. EFT=Electronic Funds Transfer. Transferring money from one account to another.
d. ATM = Automatic Teller Machine Used when withdrawing and depositing money from the machine.
e. SC=Service Charge Money the bank deducts from your account for maintaining the account.
f. INT = Interest earned on the account if interest bearing.
g. DC=Debit Card

2. Always give enough information to know where the money went and what it was for.
3. Always keep your balance up to date so you know exactly how much money is in your account.

Time clock.jpgTo Review!

Click on the link below to view another video about your checking account. You need to have a good understanding about recording information before you move on to the next assignment. When you are finished viewing the video, return to this page and continue to Activity 5.

Balancing a Checking Account

Activity 5 - Paying Your Bills

dollar_sign.jpgAssignment B:

Now it is time to see what you have learned. In this activity you will use deposit slips, checks and a check register to process common . You will open and print the Checkbook.pdf , Assignment B Check Sheet, and the Paying Your Bills file from Google Docs.

Use the automated Check Register file in Google Apps to record all of your checking account transactions. Remember what you have learned from the videos. Also refer to "How to Enter Transactions When No Check is Written" for abbreviations to place in the check number column.

You must make a copy of all files in Google Docs so that you can enter information. Make sure to save the copied file with your name on it and place it into your Personal Finance collection in Google Docs.

stop_sign.jpgCheck Point - Mrs. Kennedy is to check your work before you continue.

ALERT: If at any time you don't understand what you need to do. Just ASK!!

Activity 6 - Reconciling/Balancing Your Checking Account.

How do you know if you have kept good records and recorded all transactions in your check register? How do you know if the bank has applied the transactions to your account properly? You and the people that work at banks are all human and are prone to make mistakes now and then. There is a way to check to make sure that all is correct. It is called a reconciliation. Your records are brought into agreement with the bank's record of your account. The following video describes three reasons why it is important to balance your check book.

dollar_sign.jpgAssignment C:
When you are finished watching the video and send an email to: and list the three reasons that you have learned from the video. Use "Why to Balance A Checkbook" in the Subject line.

Why is it Important to Balance Your Checkbook?

Things You Will Need to Balance Your Checkbook

Activity 7

View the following video to see what you will need to have with you in order to balance your checkbook.

How to Compare Bank Statement against Check Register

Activity 8
This video shows the steps needed to balance your checkbook. Watch the video to prepare to balance the checkbook you worked on in Activity 5, Assignment B.

dollar_sign.jpgAssignment D

Now it is time to balance or reconcile your own checkbook. You will want to open a new tab in your browser, go to Google Docs and open your Automated checkbook register. Also you should have by now received a copy of your bank statement in you email. Print out your bank statement. Use the bank statement and your check register to balance the account. If you need more help click on the link below or ask Mrs. Kennedy to guide you through.

When finished, email Mrs. Kennedy at to inform her that you have completed the assignment. Put "Checking Account" in the Subject line. Then, make sure you have saved your check register in your Google Docs Personal Finance folder to be graded.

Additional help for Balancing a Checkbook.