Lesson 3. How to Open a Checking Account = 10 mins (Placard #10)
“The next lesson is on how to open a Checking Account. Why should you open a checking account? Raise your hand if you have an answer.” = 1 min “Okay, all of these are good answers. And two of the most important reasons to open a checking account are: safety and interest.” Now, you all know what safety is, but who can tell me what interest is?” = 2 mins (show Placard #11)
Interest = Money that Bankers pay you to keep YOUR money in THEIR bank. “What Bankers do is they take your money and invest it so they can make a profit. That’s how banks make money.”
Now, when you open a checking account you will need 3 things: First you will need to go to a bank, Second you will need a picture ID, and Third you will need some money to deposit. It’s that easy. Once you open your account you will have a checking account number. What we’re going to do next is assign each of you a number so you can open a checking account with your banker.
(The bankers assign each student a checking account number. The bankers will record the student’s number and name to establish each student’s bank account.)
Now, for the sake of our game, you will earn $200 for every $600 you deposit in your checking account. This means that if you have 3 pieces of candy in your checking account, the banker will deposit another piece of candy into your account at the end of the week.” (Placard #12)
One of the most important parts of having a checking account is keeping track of how much money you have in your account. And to do this, you will need a Bank Book. You each have one at the bottom of your Worksheet. We’ve also provided you with a sample of how to keep track of your transactions. The Sample is located right above your Bank Book. A transaction is when you either deposit or withdraw money from your account.
You can see that the first sample transaction is a deposit of $400. And the second is a deposit of $200. Can anyone tell me what the balance is after these two transactions?
It is very important for you to keep track of every transaction that occurs in your account. Who can tell me why this is important? = 1 min. (Answer = So you know how much money you have in your account.)
Now, to open your checking account, you need to hand your money over to your banker, and sorry, we cannot accept any candy that has been opened. And Yes, everyone has to open a checking account. It’s part of buying a car. What I want you to do first is to write down your first transaction in your Bank Book. It will be your first deposit. When you are done, write down your second transaction, which will be your Pay for week 3. Your pay for week 3 will be deposited directly into your checking account. And it will be $600, and I’ll explain why in just a minute. How much is your pay for week 3? ($600) Be sure to calculate your balance. After you’ve recorded the two deposits and figured out your total balance, show your Bank Book to your banker, and make your deposit (hand over your candy) to open your checking account.(Payday # 3. Bankers collect candy from those who wish to open a checking account, keeping a record of how much each student has in their account and being sure to deposit another $600 in each student’s account. If the student does not have any candy to deposit, the banker will tell the student that they have week 3’s pay deposited in their account.)