Money Matters

1
Money Matters

• Things You Need to Know About Money and Bank
  Accounts

2
Paper Money
American paper money in all denominations is the
same color and the same size. One, 5, 10, 20, 50
and 100 dollar bills are most commonly used. Each
bill will have a picture of a famous American on
the front, and the bill's numerical denomination
on each of the four front corners. You will have
to be careful not to confuse the denominations.
3
Coins
American coins are even more confusing than
currency notes. Nowhere on an American coin will
you find a number value. For some reason, the
amounts are spelled out. Nor are the coins minted
in size order. Commonly used coins are the
one-cent piece (penny), five-cent piece (nickel),
ten-cent piece (dime) and 25-cent piece
(quarter). Fifty-cent pieces are rarely seen.
The penny is copper-colored and reads "one
cent" on the bottom reverse. The nickel is a bit
larger and reads "five cents" on the bottom
reverse. The dime (10 cents) is the smallest
coin, and, rather than "ten cents," reads "one
dime." The quarter (25 cents) is larger than the
other three coins and reads "quarter dollar" on
the bottom reverse.
4
Checking Account

• Allows you to write checks against your account,
  up to the available balance. If you don't have
  enough money in your account for a check you
  write, the check will "bounce" and the bank will
  return it unpaid to the person you wrote it to.
  You both will be charged an extra transaction fee
  (about 30).
• You'll use checks to pay for such items as rent,
  electric and telephone bills, insurance payments,
  mail-order goods, and so forth. You may often pay
  by check when shopping in person. If the store
  doesn't know you, they will want identification
  usually at least one major national credit card
  plus a driver's license.

5
Check Etiquette

• Cash Back. It is not customary or polite to ask
  a merchant if you can write a check for more than
  the balance as a means to get ready cash, except,
  to a limited degree, in supermarkets.
  Supermarkets have special procedures for paying
  by check. You'll probably have to apply for a
  special check cashing card with the supermarket
  manager, and sometimes you'll have to get each
  check approved by the manager before you get in
  line with your purchases. The supermarket will
  have a limit (25.00 or so) on how much cash you
  can get back above the amount of your purchase
• Bouncing a Check. Not having money in the bank
  to cover a check you write is considered an
  embarrassment in the United States. If you bounce
  a check you write to a merchant, they will
  probably charge you an extra fee themselves
  easily accessed, not usually interest bearing

6
Your Checking Account
7
Your Checking Account

• Date Write in the day you are filling out the
  check
• Pay to the Order of Write in the name of the
  person(s) or place to whom you are writing the
  check
• Amount Write the amount the check is for in
  Arabic numerals. When you write the number, start
  at the left and don't leave space. People could
  add in more numbers if you leave room
• Dollars Write, in words, how much the check is
  for. When you write the words for the dollars,
  start at the left side. Write any cents as a
  fraction. Draw a line through the extra space
• Signature Sign your name here, just like it is
  on the top of the check. Don't sign it until you
  use it. If you sign it ahead of time, someone
  else could use the check
• Memo Indicate what the check payment is for
  (like groceries, car payment, or rent
  January 2006 it is also a good idea to write
  the account numbers associated with the bill you
  are paying.)

8
Keep Track of Your Account
9
Keep Track of Your Account

• Number This is the check number. You'll find it
  in the upper right hand corner of each check.
  Every check has a different number.
• Date Write in the date of the transaction.
• Description of Transaction This tells what
  happened. Did you deposit money? Did you write a
  check? Use the Automated Teller Machine (ATM)?
  Make a telephone transfer? Describe your
  transaction here.
• Payment/ Debit This is the amount of the check
  or how much the withdrawal is for.
• Code for Transaction This is where you fill in a
  code for transactions you make when you aren't
  writing a check. When you get your statement,
  every month you'll place a "v" through this box
  if you see the transaction listed.
• Service Fee If your financial institution
  charges you money to write each check, or to
  withdraw money from the ATM, write that fee in
  this space.
• Deposit/Credit Did you deposit money into your
  account, does your statement say you earned
  interest? Write down the amount here.
• Balance To find out how much money you have, add
  the deposited money to what you had before. Or
  subtract the withdrawal amount from what you had
  before. The money left is your balance.

10
Keep Track of Your Account
11
Balancing Your Checkbook

• Once a month, when you get your statement from
  the bank, go through the transaction record and
  make sure the statement matches your records.
  Did all the checks go through? Did you earn any
  interest or incur any fees you didnt know about?
  Make sure all the numbers add up, and if they
  dont, FIND OUT WHY!

12
Automated Teller Machine
Many banks offer automated teller machines
(ATM's). These might be at your bank's branch,
but the bank may also be a member of a network
that will allow you to take money out or do
certain transactions at hundreds of different
machines at different banks. Some machines allow
you to "drive-in" and use them without getting
out of your car. Depending upon your bank and
local regulations, you might pay a small fee for
using an ATM. You will be given a plastic bank
card and a secret access code number. You will
place the card into the slot in the ATM then
press in the access code numbers. The machine
will only give you money if it matches the data
from the card with the proper access code number.
It is therefore very important to memorize your
code number, or at least to keep it written down
in a place separate from the bank card. If your
bank card is stolen, the thief will not be able
to use it to withdraw money from the ATM without
the code number. The area around ATM machines
is a popular place for thieves to rob
unsuspecting people. ALWAYS be aware of your
surroundings when using the ATM. If you see
someone lurking outside, get back into your
car.
13
Debit Card/Check Card

• Look like credit cards or ATM cards, but act like
  cash or a personal check
• Debit/Check cards are pay now,
• Credit cards are pay later
• Is your ATM card also a Debit/Check Card? Look
  for the MasterCard or Visa logo
• ATM Cards are only good at Automatic Teller
  Machines

14
Debit/Check Card Features

• Easier to get than a credit card
• Dont have to give personal information to a
  vendor
• Dont have to carry cash or a checkbook
• Can be used almost anywhere that accepts credit
  cards (most large merchants and lots of small
  ones)
• Sometimes accepted where paper checks arent
• Returning goods or canceling services purchase
  with a debit card is treated as if the purchase
  were made with cash or a check
• No grace period
• There may be less protection than with a credit
  card purchase for items which are never
  delivered, are defective, or were misrepresented.
  (You may dispute unauthorized charges or
  mistakes within 60 days, contact your bank if you
  cannot resolve the issue with the merchant)

15
Financial Safety

• Report lost or stolen checks/cards to the bank
  immediately
• If you think someone else is using your
  debit/check or credit card number, report it to
  the bank immediately
• Hold on to your receipts! Someone can get the
  information they need to use your number from
  them
• Check your receipts against your bank statement
• Memorize your PIN (personal identification
  number)
• Never share a PIN
• Keep track of ALL your transactions in your check
  register
• Ask the bank what your financial responsibility
  is for a lost or stolen card (or number) if you
  report it
• within 2 days (50 or less)
• Within 60 days (500 or less)
• Over 60 days you are responsible
• Never give personal information to someone on who
  calls you to verify your account information