Parts of a Check
The line where you sign your name.
Signature line
A check for $57.82 is written to Walmart. This amount is recorded in what column of a register?
Withdrawal/payment column
This percent of the 50/30/20 rule covers NEEDS.
50%
A plan for spending and saving money.
Budget
This happens when you write a check without enough money in your account.
Bounced check
This number appears at the top right and bottom and helps track your checks.
Check number
You have $200 in your account. You write a check for $214.50. What happens?
Check bounces
Eating out, subscriptions, and hobbies fall under this category.
Wants
A cost that stays the same each month (ex: rent).
Fixed Expense
You use this to record checks, deposits, and your balance.
Check register
The bank’s identification number printed at the bottom of a check.
Routing number
A student says their $10 streaming service is a need. Explain why this is incorrect.
Because it is a want, not essential for survival
This part of the rule includes savings, emergency funds, and paying off debt.
20%
Groceries and gas are examples of this type of expense.
Variable expense
One reason people still write checks.
To have a written proof/record of payment, large purchase
The line where you write who the check is for.
Payee line
You write a check but forget to sign it. What will happen?
The bank will not process it
Your monthly income is $2,300: how much money would be in each category?
Needs- 1,150
Wants- 690
Savings- 460
Recording all your spending helps prevent this.
Overspending.
The process of comparing your register to the bank’s statement.
Balancing a checkbook
If the written amount and numeric amount do not match, the bank uses this.
Written amount
You lose your checkbook. What is the FIRST thing you should do?
Call the bank to report it
Your monthly income is $3,600: how much money would be in each category?
Needs- 1,800
Wants- 1,080
Savings- 720
This is the first step before creating any budget.
Knowing your income.
Before writing a check, you should always do this.
Check your account balance