Financial Literacy

Banking for Teens

Terms to Know

Budget- Estimate of income and how much one can spend in a set period of time

Checks- Legal document that functions like cash

Choosing a Bank

When choosing a bank choose based on convenience, service, cost, and look at the additional fees the bank may charge based on their requirements.

Budget

  • Build Savings
  • Prevents overspending
  • Identify goals, better incorporate spending

Budget Cont...

Consists of:

  • Income
  • Fixed Expenses- Expenses that do not change from month to month
  • Variable Expenses- Expenses that change depending on use
  • Discretionary Expenses- Everything that is not necessary or is extra

Debit Cards

  • Electronically connected to bank account
  • Money can automatically be withdrawn
  • Authorized Signature (Write "See ID" to prevent theft)
  • Verification Code - 3 digits
  • Pin number - 4 digits may be able to choose
  • Have expiration date

Checking Accounts

Easy access to your money for daily transactional needs and helps keep funds secure

Funds can be accesses through:

  • Check
  • ATM
  • Debit Card
  • Phone
  • Internet
  • App

Checking Accounts Cont...

People use checking accounts to...


  • Reduce the need to carry large amounts of cash
  • Convenience
  • Keeps record of where money is spent
  • If lost you can keep money safe
  • If you lose checkbook, ATM, or Debit Card report it

Information About Checks

  • Check account register immediately records all transactions
  • Checkbook holds checks and check register
  • Endorsing signature on the back of check approves deposit
  • Must be endorsed to be deposited
  • 2 Types - Blank and Restrictive
  • Blank- Receiver signs and anyone can cash
  • Restrictive- Receiver writes for deposit only write the account number above signature- can only be deposited
  • Bouncing- Happens when written amount is over current balance- fee is charged- can ruin credit

Monthly Bank Statement

  • Lists each transaction and current account balance for specific time period
  • Includes dates, ID for each transaction, interest earned, and fees charged

Identity Theft

  • Fastest growing crime
  • Can steal social security number and start credit in your name
  • Can ruin credit

What to do if your Identity is stolen

  • Call your banks and credit card companies
  • File a police report
  • Contact Fraud departments (Equifax, Experian, TransUnion)