Podcast
Questions and Answers
How much were you charged to cash your check without a checking account?
How much were you charged to cash your check without a checking account?
10%
What is the monthly fee and average daily balance required for the fee to be waived at HSN Bank?
What is the monthly fee and average daily balance required for the fee to be waived at HSN Bank?
$50 / $1000
What is the best checking account you can get in the city, and why?
What is the best checking account you can get in the city, and why?
Olympic Bank, because it has the lowest monthly fee and the lowest daily balance to waive fee.
How much will you save on your weekly pay of $317.98 with a checking account?
How much will you save on your weekly pay of $317.98 with a checking account?
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When preparing to use your checking account, what method of payment do you select in the Schedule window?
When preparing to use your checking account, what method of payment do you select in the Schedule window?
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What is your new balance after making purchases and entering data in your check register?
What is your new balance after making purchases and entering data in your check register?
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What is your weekly take-home pay for this period?
What is your weekly take-home pay for this period?
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What is the closing balance on the bank statement for the period ending January 28, 2021?
What is the closing balance on the bank statement for the period ending January 28, 2021?
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What is your new subtotal after adding deposits not credited on the bank statement?
What is your new subtotal after adding deposits not credited on the bank statement?
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What is your adjusted balance after subtracting outstanding checks?
What is your adjusted balance after subtracting outstanding checks?
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Does the ending balance in your check register match the adjusted balance per your bank statement?
Does the ending balance in your check register match the adjusted balance per your bank statement?
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Study Notes
Checking Accounts Overview
- Goal: Identify the best checking account option and learn to balance a checkbook.
- Initial action: Cashing a paycheck incurs a fee of 10% without an account.
Bank Selection Criteria
- HSN Bank requires a monthly fee of $50 and a minimum balance of $1,000 to waive the fee.
- Olympic Bank provides the most favorable conditions with the lowest fees and minimum balance requirements.
Opening an Account
- Deposit of $1,388.88 is made upon opening the checking account at Olympic Bank.
- Switching to a checking account saves $31.80 on a weekly pay of $317.98 by eliminating the 10% check cashing fee.
Managing Transactions
- The check register is updated after each transaction to maintain accurate account balance.
- Initial deposit and current expenses are tracked accurately for financial management.
Weekly Pay and Spending
- Weekly take-home pay is confirmed at $317.98 and entered into the check register.
- Transactions are recorded following each purchase, with balances updated accordingly.
Running Simulations
- Simulations are run weekly, stopping to enter transactions, pay bills, and assess account balances.
- As of the statement period ending Jan. 28, 2021, the closing balance is reported as $1,724.84.
Balancing the Checkbook
- The reconciliation process includes comparing the check register with the bank statement, noting any missing transactions.
- New subtotal after adding uncredited deposits is $2,042.82.
Adjustments and Final Balances
- Outstanding checks deducted from the subtotal give an adjusted balance of $1,495.32.
- Ending balance should match the adjusted balance, confirming accurate record-keeping.
Lesson Goals
- Maintain a balanced checkbook by entering transactions accurately and on time.
- Complete a minimum of three correct entries to successfully finish the lesson, prioritizing debit card payments to prevent check caching delays.
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Description
This quiz helps you learn how to choose and balance a checking account effectively. You will navigate through various banks, understand transaction fees, and practice balancing your checkbook with real-life scenarios. Perfect for those looking to improve their personal finance skills!