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Sample Checkbook Register

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									CHECKING 101
Check out Checking at First American
                                                             Checking 101

Checking Basics
•	   A	check	is	a	written	order	that	represents	cash
•	   Credit	union	checking	accounts	are	also	called	SHARE	DRAFT	accounts
•	   A	share	draft	account	is	equivalent	to	a	check,	and	is	accepted	almost	anywhere		


How does it work?
•	   You	write	out	a	check	to	a	store/establishment	for	payment
•	   The	store	accepts	the	check	as	payment,	and	deposits	it	into	their	bank	account
•	   That	bank	sends	the	check	to	the	Federal	Reserve	Bank	(FRB);	visit	http://minneapolisfed.org	for	more	info	on	the	FRB
•	   The	FRB	cashes	the	check	and	pulls	the	funds	from	your	account


Choosing a Checking Account
     FEES AND FINES
•	   Service	charges	are	usually	based	on	the	number	of	checks	you	write	a	month,	your	minimum	balance	and	other	accounts	you	hold	
     with	the	financial	institution.	
     INTEREST
•	   Some	checking	accounts	pay	interest	if	you	maintain	a	minimum	balance.	Generally	the	higher	your	balance,	the	more	interest	you’ll	
     earn,	and	the	fewer	fees	you’ll	pay.
     MINIMUM BALANCE
•	   Many	accounts	require	you	to	keep	a	minimum	amount	of	money	in	your	checking	account	to	avoid	service	fees.



Checking/Share Draft Tips
•	   Never	accept	a	check	that	appears	to	be	altered,	and	don’t	make	changes	to	checks	written	to	you.
•	   Never	make	a	check	payable	to	‘Cash’	or	‘Bearer’;	this	allows	anyone	to	cash	it.
•	   Destroy	blank	checks	and	deposit	slips	you	won’t	use.
•	   Sign	the	check	last;	if	you	sign	it	before	you	fill	in	the	name	of	the	person	to	whom	you’re	writing	the	check	and	it’s	stolen,	anyone	can	
     fill	in	their	name	and	cash	it.
•	   If	a	teller	asks	you	for	ID,	it’s	only	because	it’s	a	security	measure	that	protects	your	money.
•	   Save	your	receipts	and	statements	for	seven	years.	You	may	need	them	for	tax	purposes.		
•	   If	your	checkbook	is	lost	or	stolen,	report	it	to	your	financial	institution	immediately.	They	will	put	a	stop	payment	on	all	unused	checks.	
     There	may	be	a	fee	for	this	service.
How to Use a Checkbook Register
CHECKS
For	each	check	you	write,	immediately	enter	the	following	in	the	appropriate	space	in	the	checkbook	register:
•		 The	check	number	(in	the	“Item	No.	or	Transaction	Code”	column)
•		 The	date
•		 Who	you	wrote	the	check	to	and	why	(in	the	“Transaction	Description”	column)
•		 The	check	amount	(in	“Subtractions”	column	and	in	the	“Balance”	column);	immediately	subtract	the	amount	from	your	current	balance.

DEPOSITS
For	each	deposit	you	make	into	your	checking	account,	complete	a	checking	account	deposit	slip	and	enter	the	following	information	in	the	
checkbook	register:
•		 The	date
•		 The	source	of	the	money	(for	example,	a	paycheck	or	a	gift)
•		 The	deposit	amount	(in	the	“Additions”	column	and	also	in	the	“Balance”	column);	immediately	add	the	amount	to	your	current	balance.

OTHER ENTRIES
Enter	all	money	withdrawn	or	deposited	into	your	checking	account	including:
•		 Service	charges
•		 ATM	cash	withdrawals	and	any	fees
•		 Transfers	from	other	accounts,	for	example,	your	savings.
                                                      SAMPLE	CHECK	REGISTER
    CHECK	                                                             PAYMENT                DEPOSIT	AMOUNT	      NEW	BALANCE
                DATE                  DESCRIPTION                                       TAX
   NUMBER                                                             AMOUNT	(-)                    (+)                 134 13
    Dep         9/26    Gate Communications                                                          246 00
                        paycheck                                                                                        380 13
     315        9/29    Steve’s Bagel Barn                                16 23
                        Party Foods                                                                                     363 90
     316        10/5    University Book Store                             45 00
                        Sweatshirt                                                                                      318 90
    ATM         10/8    24-Hour Teller                                    20 00
                        Pocket Money                                                                                    298 90



How To Balance Your Checkbook
You	can	take	all	of	the	hassle	out	of	managing	your	checkbook	by	developing	two	simple	habits.
•	 After	each	transaction,	recalculate	the	new	amount	of	money	in	your	account.	This	figure	is	called	your	balance.
•	 Once	each	month,	make	sure	your	checkbook	balance	agrees	with	the	balance	your	credit	union	says	you	have.	You	don’t	have	to	
    wait	until	the	end	of	the	month	to	balance	your	checkbook	either.	You	can	access	your	account	24/7	with	our	free	online	banking	(CU	
    Banking)	or	free	24-hour	telephone	teller.	

                                                       The Balancing Act
Balance Your Records...
                                                                                    Your	account	is	said	to	be	overdrawn	when	the	
1.	List	your	checkbook	balance                      $284.90
                                                                                     total	amount	of	the	checks	you	write	is	greater	
2.	Subtract	fees	and	deductions                          5.00                            than	the	balance	in	your	account.	To	avoid	
3.	The	remainder	is	your	new	balance                 279.90                        overdrawing	your	account	and	the	fees	involved,	
With the Credit Union’s Records...                                                     make	sure	you	only	write	checks	against	the	
                                                                                                    actual	balance	in	your	account.
4.	List	your	statement	balance                      $314.39
5.	Subtract	checks	outstanding                         49.49                               Your	credit	union	will	send	you	a	monthly	
6.	Subtotal                                          264.90                        statement	of	all	the	transactions	it	has	processed	
7.	Add	deposits	outstanding                            15.00                         during	the	account	cycle.	Use	this	statement	to	
                                                                                                      prove	your	records	are	correct.
8.	This	sum	should	equal	line	3                      279.90
                                                        Managing Your Checking



                                       Writing Checks & Keeping a Check Register
1. Good	record	keeping	is	the	key	to	                2. When	you	use	an	ATM,	record	the	              Bounced	checks,	those	that	are	
   no-hassle	checking.	Before	you	write	                transaction	in	your	register.                 returned	to	your	credit	union	for	lack	
   a	check	or	make	a	deposit,	fill	out	your	                                                          of	sufficient	funds	(NSF)	,	will	cost	you	
                                                     3. Keep	your	balance	up	to	date	to	              steep	fines	and	harm	your	financial	
   check	register	completely.	Always	                   prevent	spending	more	than	you	
   describe	the	source	or	use	of	your	                                                                reputation.
                                                        have	available.	
   money.

                                                         YOUR	CHECK	REGISTER
    CHECK	                                                               PAYMENT                  DEPOSIT	AMOUNT	       NEW	BALANCE
                 DATE                  DESCRIPTION                                        TAX
   NUMBER                                                               AMOUNT	(-)                      (+)                  134 13
     Dep        9/26     Gate Communications
                         paycheck
                                                            1                                          246 00
                                                                                                                             380 13
     315        9/29     Steve’s Bagel Barn                                  16 23
                         Party Foods                                                                                         363 90
     316        10/5     University Book Store
                         Sweatshirt
                                                                             45 00
                                                                                                                        3    318 90
     ATM        10/8     24-Hour Teller                                      20 00
           2             Pocket Money                                                                                        298 90


                    John J. Smith                                                                                    1234-56/7890    0316
                 2632 Meadow Circle
                Hometown, State 12345                                                5     October 5            20     04

                                               4                                                                                     6
           Pay to the
           Order of          University Book Store                                                          $        45.00

 7         Forty-five and 00/100                                                                                                    Dollars
               FIRST AMERICAN CREDIT UNION
               We’re Not a Bank. We’re Better.


                           Sweatshirt
                                                     9                                           John J. Smith                      8
           Memo
             :123456789 :                123”’4567”’          0316    10

4. Always	write	clearly,	using	permanent	            7. Write	the	amount	in	words,	                   9. Always	note	the	purpose	of	the	
   ink,	so	the	credit	union	will	understand	            beginning	as	far	left	as	possible.	               check	for	good	record	keeping.
   what	you	want	it	to	do.                              Draw	a	horizontal	line	to	fill	up	the	        10. Your	account	number	and	the	
5. Always	date	your	check	the	day	you	                  empty	space	so	no	one	can	add	                    numeric	code	for	your	credit	union	
   write	it.                                            to	your	instructions.	The	amount	                 are	printed	in	magnetic	ink	here.	
                                                        written	in	words	and	the	amount	                  These	symbols	help	separate	your	
6. Protect	yourself	from	fraud.	Write	                  written	in	numbers	must	match.
   the	amount	of	the	check	in	numbers	                                                                    check	and	deposit	slips	from	others	
   beginning	immediately	after	the	dollar	           8. Do	not	sign	the	check	until	you	                  in	the	electronic	sorting	machine.	If	
   sign,	as	far	left	as	possible.	This	                 are	sure	the	information	is	correct	              these	numbers	are	torn	or	defaced,	
   procedure,	along	with	step	7	will	prevent	           and	complete.	Then	use	the	same	                  tear	up	the	check	and	write	a	new	
   a	thief	from	altering	the	amount	of	your	            signature	that	appears	on	your	                   one.
   check.                                               signature	card.
How To Endorse Checks                                                                                                Endorsements
Not	only	will	you	be	writing	checks,	you	will	be	receiving	checks,	all	of	
                                                                                                       ENDORSE	HERE
which	go	back	to	a	financial	institution	eventually.	Because	it	is	your	
money,	you	must	add	your	instructions	to	the	check	so	the	financial	                                   X      John J. Smith
institution	will	know	what	you	want	done	with	the	check.	Your	instructions	                 Blank
                                                                                                               123 1026
are	called	your	endorsement.
•	 An	endorsement	is	your	signed	approval	for	a	check	to	be	cashed,	                                        DO	NOT	WRITE,	STAMP	OR	SIGN	BELOW
     deposited	or	assigned	(transferred)	to	someone	else.	Place	your	                                         RESERVED	FOR	FINANCIAL	INSTITUTION	USE
     endorsement	within	1	1/2	inches	of	the	top	on	the	back	left	side	of	the	
     check	(on	the	flip	side	of	where	the	words	“Pay	to	the	order	of”	are	
     printed).	
                                                                                                       ENDORSE	HERE
                                                                                                       X      For deposit only
         There Are Three Forms Of Endorsement                                        Restrictive               John J. Smith
    •	 If	you	want	to	cash	the	check	for	yourself,	use	the	blank	
       endorsement.	The	blank	endorsement	is	just	your	signature	and	                                             123 1026
       account	number	in	the	proper	position.	Be	careful	—	a	blank	                                         DO	NOT	WRITE,	STAMP	OR	SIGN	BELOW
                                                                                                              RESERVED	FOR	FINANCIAL	INSTITUTION	USE
       endorsement	makes	your	check	negotiable	by	anyone	who	finds	it	
       if	you	lose	it.
    •	 If	you	want	to	make	sure	that	the	check	can	be	deposited	only	in	
       your	account,	use	a	restrictive	endorsement	by	writing	“For	deposit	                            ENDORSE	HERE
       only”	above	your	signature	and	account	number.                                                  X      Pay to the order of
                                                                                         Special               Jo Bohannon
    •	 If	you	want	to	give	your	check	to	someone	else,	then	you	must	
       use	a	special	endorsement.	It	tells	the	financial	institution	that	you	
                                                                                                                  John J. Smith
       are	intentionally	signing	over	your	check	to	a	specific	person	or	
                                                                                                            DO	NOT	WRITE,	STAMP	OR	SIGN	BELOW
       organization.	Write	“Pay	to	the	order	of”	and	the	person’s	name,	                                      RESERVED	FOR	FINANCIAL	INSTITUTION	USE
       and	then	sign	your	name	underneath.


Deposit Ticket
         John J. Smith                                         1234-56/7890 0316
      2632 Meadow Circle                   October 5      20   04
     Hometown, State 12345
 Pay to the
 Order of        University Book Store                          $   45.00
  Forty-five and 00/100                                                 Dollars
                                                                                                                                          DOLLARS   CENTS
                                                                           DEPOSIT	TICKET
                                                                                                                    CURRENCY
     FIRST AMERICAN CREDIT UNION
     We’re Not a Bank. We’re Better.                                 Mary A. White                                  COIN

              Sweatshirt                          John J.      Smith123 Jackson Street                             CHECKS

 Memo                                                                                                               1234-56/7890              45 00
     :123456789 :            123”’4567”’   0316                   Hometown, State 12345
                                                                                                                        TOTAL	FROM	
                                                                                                                        OTHER	SIDE




                                                                 DATE            October 7                 2004             TOTAL
                                                                                                                     LESS CASH RECEIVED

                                                                                                                            TOTAL             45 00

                                                                     FIRST AMERICAN CREDIT UNION
                                                                     We’re Not a Bank. We’re Better.
                                                                     :123456789 :               123”’4567”’   0316

How To Make A Deposit
All	the	checks	you	receive	should	be	run	through	your	checking	account	so	you	can	keep	track	of	the	money	coming	in.	DEPOSIT	CHECKS	
PROMPTLY.
It’s	very	easy	to	deposit	a	check	into	your	account.	Once	again,	the	key	is	to	give	your	credit	union	clear	instructions	about	what	you	want	it	
to	do.	You	give	the	instructions	by	completing	a	deposit	ticket.	Just	write	the	date	in	the	space	provided,	and	fill	in	the	amount	of	money	to	
be	put	into	your	account.
If	you	have	bills	and	coins,	enter	the	amounts	on	the	lines	designated	currency	and	coin.	If	you	are	depositing	checks.	list	them,	one	to	a	
line,	by	recording	the	amount	and	the	financial	institution’s	number	which	is	shown	as	a	fraction	located	in	the	upper	right-hand	corner	of	
each	check.
Add	up	the	amount	of	currency,	coin,	and	checks,	and	enter	it	in	the	total	box.	Then	hand	your	deposit	slip,	cash	and/or	endorsed	checks	to	
the	teller	who	will	give	you	a	receipt	for	the	total	deposited.	Verify	your	receipt	and	keep	for	your	records.
Overdrafts & Overdraft Protection
•	 If	you	write	out	a	check,	but	don’t	have	adequate	funds	in	your	account,	you	will	overdraw	your	account.	When	this	happens,	whoever	
   the	check	was	written	to	will	return	it	to	us	(or	it	“bounces”).	They	will	typically	charge	you	a	fee,	and	we	charge	you	a	$24	fee.
•	 This	can	be	VERY	pricey,	and	it’s	illegal.	It’s	important	to	balance	your	check	book	as	often	as	possible	so	you	always	know	how	much	
   money	you	have.	Remember,	you	don’t	have	to	wait	for	your	monthly	statement	to	balance	your	checkbook	as	you	can	do	so	online	
   with	free	CU	Banking	or	via	telephone	with	our	free	24-hour	telephone	teller.
•	 You	can	set	up	free	automatic	overdraft	protection	at	FACU.	This	means,	if	you	write	out	a	check,	but	don’t	have	the	funds	to	cover	it	in	
   your	checking	account,	we’ll	pull	the	remaining	funds	from	savings	account	or	other	designated	deposit	account.	We	charge	a	$1	fee	
   each	time	you	use	this	service.

Electronic Money
Here	are	two	ways	to	electronically	access	your	money:
1.	 Automated	Teller	Machines	(ATM)	-	allows	you	to	get	cash,	transfer	between	accounts,	and	make	deposits.	
2.	 MasterCard®	Debit	Cards-	may	be	used	anywhere	MasterCard	is	accepted.	They	act	as	checks,	taking	funds	directly	out	of	your	
    checking	account.	You	simply	slide	your	card	through	a	machine	at	point	of	sale;	you	may	use	it	as	either	credit	(you’ll	have	to	sign)	or	
    debit	(you’ll	use	your	PIN)	—	but	remember	your	funds	will	ALWAYS	be	taken	out	of	your	checking	account.

Stop Payments
•	 If	you’ve	written	a	check	for	merchandise	or	a	service	and	are	unhappy	with	what	you’ve	purchased,	you	may	do	a	“STOP	PAYMENT”.
•	 A	stop	payment	means	you	order	us	not	to	honor	a	specific	check	you’ve	written.	You’ll	be	charged	a	$24	fee	for	the	service.

Reconciling Your Account
STEP	1                                                                  STEP	3
Mark	in	your	checkbook	register	every	item	that	appears	on	your	        List	the	deposits	and	other	credits	that	are	in	your	checkbook	register	
statement.	If	there	is	an	item	on	your	statement	not	listed	in	your	    but	are	not	on	your	statement.	Add	these	to	your	ending	balance.
check	register,	determine	if	it	is	accurate.	If	the	item	is	correct,	
                                                                        STEP	4
list	it	in	your	check	register.	If	the	item	is	incorrect,	call	your	
                                                                        List	the	checks,	ATM	withdrawals,	fees	and	other	debits	that	are	on	
financial	institution	immediately	to	have	it	investigated.
                                                                        your	checkbook	register	but	not	listed	on	the	statement.	Subtract	these	
STEP	2                                                                  from	your	balance	in	Step	3	to	get	your	new	ending	balance.
Your	financial	institution	should	provide	you	with	a	monthly	
                                                                        STEP	5
reconciliation	worksheet	with	your	statement.	Enter	the	ending	
                                                                        Write	the	ending	balance	in	your	checkbook	register.
balance	shown	on	your	statement.	

    SHARE	DRAFT	RECONCILEMENT		•		•		•		THIS	FORM	IS	PROVIDED	TO	ASSIST	YOU	IN	BALANCING	YOUR	SHARE	DRAFT	ACCOUNT

  DRAFT	NUMBER        AMOUNT           DRAFT	NUMBER        AMOUNT                                                   PERIOD	ENDING


                                                                                 1.		Subtract	from	your	draft	register	any	charge	listed	on	this	draft	statement	which	you	
                                                                                     have	not	previously	deducted	from	your	balance,	also	add	any	dividend.
                                                                                 2.			Enter	draft	balance	shown	on	the	statement	here                   $
                                                                                 3.			Enter	deposits	made	later	than		                                  $


                                                                                                                                           {
                                                                                      the	ending	date	of	the	statement
                                                                                                                                                 +
                                                                                                                                                        $
                                                                                                                                                 +
                                                                                                                                                 +      $

                                                                                                                               TOTAL	(2	PLUS	3)         $
                                                                                 4.				In	your	draft	register,	check	off	all	drafts	paid	and	in	area	   	
                                                                                       provided	at	left,	list	numbers	&	amounts	of	all	unpaid	drafts

                                                                                 5.			Subtract	total	drafts	outstanding                        {-       $

                                       TOTAL→                                    6.			This	amount	should	equal	your	draft	register	balance              $


                                               IF YOU DO NOT BALANCE
                          Verify	additions	and	subtractions	-	above	and	in	your	draft	register.
     Compare	the	dollar	amounts	of	drafts	listed	on	this	statement	with	the	draft	amounts	listed	in	your	draft	register.
  Compare	the	dollar	amounts	of	deposits	listed	on	this	statement	with	the	deposit	amounts	recorded	in	your	draft	register.
                                                             Practice Activities



1.	 Using	the	Sample	Checks	Worksheet,	write	a	check	for	the	first	three	transactions	outlined	below.
2.	 Using	the	Sample	Deposit	Slip	Worksheet,	complete	a	share	draft/checking	account	deposit	slip	including	the	first	two	deposits	below.
3.	 Enter	all	checks,	deposits,	and	ATM	transactions	on	the	Sample	Checkbook	Register	Worksheet,	using	a	beginning	balance	of	$500.	
    Follow	the	correct	sequence	of	dates	when	completing	this	exercise.	

CHECKS
Check #            Date                    To                                                           Purpose                Amount
5801	              9/01	                   Wal-Mart	                                                    Groceries	              $	55.63
5802	              9/06	                   Road	Ranger	                                                 Gas	                    $	22.36
5803	              9/10	                   First	American	Credit	Union	                                 Cash	withdrawal	        $	25.00
ATM	               9/17	                   N/A	                                                         Cash	withdrawal	        $	15.00*
5804	              9/23	                   AT&T	                                                        Phone	bill	             $	26.75
5805	              9/28	                   Alliant	Energy	                                              Electric	bill	          $	23.00
*Add	a	50¢	transaction	fee.

DEPOSITS
Date               Source                      Amount
9/4	               Work	paycheck	             $	285.00	(you	request	$50	cash	back)
9/18	              Work	paycheck	             $	285.00
9/18	              Birthday	gifts
	                  					Check	                 $	25.00
	                  					Cash	                  $	45.00
9/28	              Refund	check	               $	35.50
                                    Sample Checks Worksheet




                                                         1234-56/7890   5801
                                                        20


Pay to the
Order of                                            $
                                                                        Dollars
   FIRST AMERICAN CREDIT UNION
   Better For You.


Memo
 :123456789 :         123”’4567”’   0316



                                                         1234-56/7890   5802
                                                        20


Pay to the
Order of                                            $
                                                                        Dollars
   FIRST AMERICAN CREDIT UNION
   Better For You.


Memo
 :123456789 :         123”’4567”’   0317



                                                         1234-56/7890   5803
                                                        20


Pay to the
Order of                                            $
                                                                        Dollars
   FIRST AMERICAN CREDIT UNION
   Better For You.


Memo
 :123456789 :         123”’4567”’   0318
Sample Deposit Slip Worksheet
                 Sample Checkbook Register Worksheet



                               YOUR	CHECK	REGISTER
 CHECK	                                  PAYMENT,	FEE         DEPOSIT,		   NEW	BALANCE
          DATE   DESCRIPTION                              √
NUMBER                                   WITHDRAWAL	(-)       CREDIT	(+)
                                                    Checking 101 Quiz




Name:_______________________________________________________________________________________

Address:_____________________________________________________________________________________

Email:_______________________________________________________________________________________

Phone:_______________________________________________________________________________________


1. Name three things to consider when choosing a checking account.


2. What is a bounced check?


3. Name two ways to access your money electronically.


4. Define ‘stop payment’.


5. After each check you write, what four things should you record in your checkbook register immediately?


6. Assume you have Overdraft Protection on your checking account and you write out a check but don’t have
   the funds to cover it. What happens?


7. What must you do at least once a month to make sure your records are correct?


8. What are the three types of endorsements?


9. What should you do if your checkbook is lost or stolen?


10. True or False: You should save your checking receipts and statements for 10 years.

 Please return quiz to any First American Credit Union branch, or email your answers to marketing@firstamericancu.com.
                Once we receive your answers and they are correct, you’ll receive credit for Checking 101.

								
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