BANK - Banking Module Overview

Banking Module Overview

Introduction

Dead presidents, Dough, Dinero, Benjamins, Coin, Bread, Cheddar, Moolah, Stacks - all terms used to describe money! Keeping your Benjamins in a safe place is of the utmost importance to most people. In addition, it is probably not the best idea to bury it in your backyard! One common way to keep your Dough safe is by depositing it in the bank. But is my Moolah safe in a bank? And how do I choose the best bank for my needs? Easy! Work through this module and learn about what types of services banks offer, how to earn Bread with your Bread, and discover the difference between debit and credit. Also, this module will teach you how to make sure your records of your spending matches the bank's record of your spending so you can account for every coin.

 

Essential Questions

  • What types of accounts and services do banks offer customers?
  • How do you balance a checkbook?
  • Why is it beneficial to reconcile your bank statement?
  • What is the purpose of various check endorsements?
  • What is the difference between a debit and credit card?
  • How is interest earned on funds in a bank account?

 

Key Terms

  • Saving: the process of setting money aside for a future date instead of spending it today
  • Deposit: money you put into your bank account
  • Withdrawal: money taken out of your bank account
  • Overdraft protection: arrangement with the bank to cover checks so they will not bounce
  • Minimum account balance: the amount of money you must keep in the account to avoid service charges, qualify for special service or earn interest on the checking account
  • Interest bearing account: an account that earns interest
  • Overdrawn: having a negative balance in your account
  • Overdraft penalty: a fee to cover the cost of processing your bad check
  • Online and smartphone banking: allows account holders to access their account information, view transaction history and perform banking transactions via the Internet and on their mobile phone
  • Reconcile: compare the amount of money in an account, equal to the net of credits and debits at that point in time for that account
  • Account balance: total amount of money that is in the account at a given point in time
  • Interest: money paid to you by the bank for being able to use your money
  • Interest rate: percentage you are paid for your money
  • Check: handwritten or a computer-generated order specifying the amount of money to be paid and the name of the person or company who should receive the funds
  • Debit: withdrawal from your account
  • Debit card: a card that allows the user to withdraw money from a bank account to obtain cash or make a purchase
  • Credit: an addition or deposit to your account

 

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