VB Personal Finance Checking Accounts

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.