VB Personal Finance Checking Accounts

Questions and Answers

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?

$50 / $1000

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?

$31.80 Signup and view all the answers

When preparing to use your checking account, what method of payment do you select in the Schedule window?

Direct Deposit Signup and view all the answers

What is your new balance after making purchases and entering data in your check register?

$1,088.88 Signup and view all the answers

What is your weekly take-home pay for this period?

$317.98 Signup and view all the answers

What is the closing balance on the bank statement for the period ending January 28, 2021?

$1,724.84 Signup and view all the answers

What is your new subtotal after adding deposits not credited on the bank statement?

$2,042.82 Signup and view all the answers

What is your adjusted balance after subtracting outstanding checks?

$1,495.32 Signup and view all the answers

Does the ending balance in your check register match the adjusted balance per your bank statement?

True Signup and view all the answers

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.

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!