Money Management

One of the hardest things about being on your

own is managing money. Your paycheck
may look like a lot until you start adding up
your bills. In order to get the most out of
your paycheck, complete the exercises in
this section.
When you get your first paycheck, don’t be
surprised by all of the deductions. The
amount of money that you earn (gross pay)
is not the same as the amount that you have
to spend (take-home pay or net pay). Taxes
and other payroll deductions make your
check smaller than you think. The pay stub
on your paycheck should contain the
following information.
Earnings Statement

Earnings rate hours this period year to date

5.00 46 232.00 2328.00

Gross Pay 232.00 2328.00

Deductions Statutory
Social Security Tax 14.42 144.37
Medicare Tax 3.37 33.77
Federal Income Tax 17.79 181.46
State Income Tax 4.30 43.86

Net Pay 192.12

1. If this was your paycheck, how much money
would you have to spend?____________
2. How many hours does this paycheck
cover?__________________________________
3. What were the total earnings for the time
period?______________________________
4. How much has been earned so far this
year?__________________________________
SPENDER OR SAVER

How do you handle your money? Answer the

following questions.

Yes No
___ ___ 1. If you received money for a birthday
gift, would you save it?
___ ___ 2. Do you ever misplace your money?
___ ___ 3. When you go shopping, do you hear
yourself say “I want?”
Where Does Your Money Go?

Do you ever stop to think what happened to all your

money when you look at an empty pocket only a
few days after getting paid or getting your
allowance? What you do with your money now is
probably a good indication of what you will do
with your money when you are on your own.
Using this chart below, keep track of your money
for a week.
SUND
AY

MOND
AY
Week of ____________
TUESD
AY

WEDN
ES-
DAY

THUR
SDAY

FRIDA
Y

SATUR
DAY

AMOU
NT
SPENT
1. Is your money going where you want it to
go?_________________________
2. What changes can you make in your
spending?________________________
3. Are you saving any of your
income?____________________________
____
BUDGETING

Most people find when they live on their own that

they need to plan their expenses. When you make
your plan, don’t forget money for savings. You
will want to have some money set aside for special
occasions like birthdays or vacations and for
special purchases like a car or new furniture.
Develop a personal budget with $600 a month
take-home pay. Use the work sheet below.
The savings amount, 5% of the total, has
already been filled in. You may adjust this
amount.
Rent & Utilities

Telephone

Food (includes eating out)

Clothing

Transportation
If you plan to have a car
Car payment $____
Gas & Oil $____
Car Insurance $____

If you plan to ride

“Share”
Your contribution $____

If you plan to use public

transportation
Monthly fare total $____

Recreation

Other (specify)
__________
Banking

Most people use financial institutions like savings

banks, savings and loan associations, or credit
unions to keep track of their money. These
institutions offer a variety of services. The most
commonly used services are savings and checking
accounts.
Savings accounts provide a safe place to put your
money. Your money earns interest as long as it
remains in the account. You don’t need a lot of
money to open a savings account. You can
withdraw your money at any time.

Checking accounts provide a convenient alternative

to carrying around a lot of cash. When you pay
your bills with checks instead of cash, you have a
good record of wht money you spent and when
you spent it.
Find Out About Savings Accounts

Contact a bank in your community. Find out

about savings accounts. Record your
information in the space provided.
1. Name of the bank?
________________________________________
__________

2. How much money do you need to open a

statement or passbook savings account?
________________________________________
____________________________

3. Describe at least one other type of savings

account.
Find Out About Checking Accounts

At the same financial institution, find the

answers to the following questions on
checking accounts.
1. How do you open a checking
account?_________________________________
__
2. Is there more than one type of checking account
available?___Please describe___

3. What does it cost to have a checking account?

_____________________________

4. Is there any way to avoid having a service charge

on the account? _____________
Writing A Check

Regardless of the type of checking account you

select, it is important to write your checks
properly. What you write on the check tells the
bank what to do. Properly written check scan also
protect you against potential fraud. Follow these
rules when writing checks:
 Always write in ink. If you make a mistake
start again with a new check.
 Date the check when you write it. Never date a
check with a future date.
 Write the full name of the person or company.
Don’t use abbreviations and nicknames.
 In the box, write the amount of the check in
numbers.
 On the line, write the amount of the dollars in
words and the cents in numbers. Start on the far
left hand side. After the last number, draw a line to
Name and address of person holding the account date the check was written
↓ ↓
JULIA R. OWENS 101(check number)
123 OAK AVE., #120B-PH 918-572-3344
TULSA, OK 74125-4765 Date_____________________

Pay To The Order Of _______________________________________________ $_____

_________________________________________________________________Dollars

HOME TOWN BANK

P.O. BOX 5890 TULSA, OK 75338-5786
918-528-1689

Memo ____________________________ ___________________________________

(What the check is for) name as it appears on the signature
23894496 00128450 101 card at the bank
Use the check below to practice check writing. Make this check out to Sports World in the amount of $27.32 for camping equipment.

YOUR NAME 101

123 OAK AVE., #120B PH 918-572-3344
TULSA, OK 74125-4765 DATE _____________________

PAY TO THE ORDER OF _______________________________________ $ ________

______________________________________________________________ DOLLARS

HOME TOWN BANK

P.O. BOX 5890 TULSA, OK 75338-5786
918-528-1689

MEMO_______________________________ __________________________________

23894496 00128450 101

Check Writing Exercise

Practice your banking skills by completing the

following exercise. Don’t forget to record
all of your checks in the check register.
1. On October 3rd of this year, you received a
statement from Home Town Bank showing that
you have $93.50 in your checking account. Enter
this amount on the checking account register on
the work sheet on the next page.

2. On October 4th, you bought groceries at Food

Town Market. The groceries cost $24.32 and you
paid for them with check no. 101. Write out the
check, enter the purchase in your register and
calculate your new balance.
3. On October 7th, you wanted $10 so you could go
to the movies and have a little money for the
weekend. Write out check no. 102 for “cash” enter
the amount in your register and calculate your new
balance.

4. On October 10th, you received your telephone bill

from the C&P Telephone Company for $23.20.
You paid the bill with check no. 103. Write out the
check, enter the amount in your register and
calculate your new balance.
5. On October 14th, you cashed your pay check of
$112.00 and deposited $92.00 in your checking
account and $20.00 in your savings account. Make
out the deposit slip for your checking account,
enter the deposit in your register and add the
amount to your balance. Make out a deposit slip
for your savings account.

6. On October 15th, you bought groceries at Food

Town Market for $38.72. you paid for the
groceries with check no. 104. Write out the check ,
enter the amount in the register and calculate the
7. Also on October 15th, you bought a new pair of
shoes on sale at Fit Well Shoe Store for $19.95.
You paid for the shoes with check no. 105. Write
out the check, enter the amount in the register and
calculate the new balance.

8. On October 18th, you received a check for $15.00

from Aunt Mable for your birthday. You mailed
the check to the bank for deposit to your checking
account. Make out the checking account deposit
slip and add the amount to your register.
CHECK# DATE TRANSA AMOUN AMOUN BALANC
CTION T OF T OF E
DESCRI WITHDR DEPOSIT
PTION AWAL

CHECK REGISTER
YOUR NAME 101
123 OAK AVE., #120B PH 918-572-3344
TULSA, OK 74125-4765 DATE _____________________

PAY TO THE ORDER OF _______________________________________ $ ________

______________________________________________________________ DOLLARS

HOME TOWN BANK

P.O. BOX 5890 TULSA, OK 75338-5786
918-528-1689

MEMO_______________________________ __________________________________

23894496 00128450 101

YOUR NAME 102
123 OAK AVE., #120B PH 918-572-3344
TULSA, OK 74125-4765 DATE _____________________

PAY TO THE ORDER OF _______________________________________ $ ________

______________________________________________________________ DOLLARS

HOME TOWN BANK

P.O. BOX 5890 TULSA, OK 75338-5786
918-528-1689

MEMO_______________________________ __________________________________

23894496 00128450 101

YOUR NAME 103
123 OAK AVE., #120B PH 918-572-3344
TULSA, OK 74125-4765 DATE _____________________

PAY TO THE ORDER OF _______________________________________ $ ________

______________________________________________________________ DOLLARS

HOME TOWN BANK

P.O. BOX 5890 TULSA, OK 75338-5786
918-528-1689

MEMO_______________________________ __________________________________

23894496 00128450 101

YOUR NAME 104
123 OAK AVE., #120B PH 918-572-3344
TULSA, OK 74125-4765 DATE _____________________

PAY TO THE ORDER OF _______________________________________ $ ________

______________________________________________________________ DOLLARS

HOME TOWN BANK

P.O. BOX 5890 TULSA, OK 75338-5786
918-528-1689

MEMO_______________________________ __________________________________

23894496 00128450 101

YOUR NAME 105
123 OAK AVE., #120B PH 918-572-3344
TULSA, OK 74125-4765 DATE _____________________

PAY TO THE ORDER OF _______________________________________ $ ________

______________________________________________________________ DOLLARS

HOME TOWN BANK

P.O. BOX 5890 TULSA, OK 75338-5786
918-528-1689

MEMO_______________________________ __________________________________

CHECKING DEPOSIT TICKET CURRENCY ______________

YOUR NAME COIN _____________________

123 OAK AVE., #120B PH 918-572-3344 CHECKS __________________
TULSA, OK 74125-4765

DATE_______________________________
____________________________________

HOME TOWN BANK

P.O. BOX 5890 TULSA, OK 75338-5786 TOTAL ____________________
918-528-1689 LESS CASH ________________
NET DEPOSIT ______________
23894496 00128450
CHECKING DEPOSIT TICKET CURRENCY ______________

YOUR NAME COIN _____________________

123 OAK AVE., #120B PH 918-572-3344 CHECKS __________________
TULSA, OK 74125-4765

DATE_______________________________
____________________________________

HOME TOWN BANK

P.O. BOX 5890 TULSA, OK 75338-5786 TOTAL ____________________
918-528-1689 LESS CASH ________________
NET DEPOSIT ______________
23894496 00128450
CHECKING DEPOSIT TICKET CURRENCY ______________

YOUR NAME COIN _____________________

123 OAK AVE., #120B PH 918-572-3344 CHECKS __________________
TULSA, OK 74125-4765

DATE_______________________________
____________________________________

HOME TOWN BANK

P.O. BOX 5890 TULSA, OK 75338-5786 TOTAL ____________________
918-528-1689 LESS CASH ________________
NET DEPOSIT ______________
Balancing Your Check Book

Below is the checking account statement you

received from Home Town National Bank.
The statement covers your transactions for
the month of October (the five checks and
two deposits you completed in the check
writing exercise).
You will notice that one check did not reach the bank before the statement date. You will also notice that you have been charged a service charge
for using the bank services.

YOUR NAME 11/5/01

STREET ADDRESS ACCOUNT # 1234
CITY, STATE ZIP

Activity from October 1, 2001 to November 1, 2001

Account Summary Beginning Balance 10/01/01 $0.00

Deposits 2 $ 200.05
Withdrawals 4 $ 96.24
Service charge $ 2.00
Ending balance 11/01/01 $102.26

Account Posting Date Description Debit Amount Deposits/credits

10/03 deposit 93.50
10/06 check 101 24.32
10/08 check 102 10.00
10/12 check 103 23.20
10/14 deposit 92.00
10/17 check 104 38.72
10/20 deposit 15.00
Total withdrawals 96.24
Total deposits 200.05
To balance your checkbook, complete the following
steps:

Step One: Obtain a New Checkbook Balance

1. Enter the ending balance from your checking

account register on line A.

2. Enter the amount on any service charges on Line

B.
A. $ _________/_____
B. $ _________/_____
C. $ ________/_______
Step Two: Obtain Current Bank Balance

1. Compare the check numbers and amounts on the

statement with your check register. Write down
any checks that are not listed on the statement.

2. Enter the new balance shown on the statement on

line D.

3. Enter the deposits not shown on statement on line

E.
CHECKS
OUTSTANDING

Number Amount

TOTAL
D. $ __________________/___________
E. $ __________________/___________
F. $ __________________/___________
G. $ __________________/___________
Check Endorsing

In order to cash a check that is made out to

you, you must first endorse it by signing
your name on the back of the check. There
are three types of endorsement: a blank
endorsement, a restrictive endorsement and
a special endorsement.
Blank- John Jones Restrictive-for deposit only-
john jones
Special-Pay to the order of Sue Lee John Jones

Never endorse a check before you are ready to cash

it. Use a restrictive endorsement if you are mailing
your check to the bank. Use the special
endorsement only when you intend to sign your
entire check over to another person.
You have received three checks and plan to do three
different things with them. Endorse checks
appropriately.

Check no. 1: You are mailing this check to your

bank.
Check no. 2: You want to give the entire check to
your landlord, Robert Brown.
Check no. 3: You are at your bank and you want to
cash the check.
Electronic Banking

One form of electronic banking is the automated

teller machine (ATM). The ATM is available 24
hours a day, making it possible for people to do
their banking after regular banking hours. To use
an ATM you need a plastic ATM card and a
personal identification number (PIN). Both the
card and the number are provided by the bank.
How much do you know about ATMs?

1. You can use the ATM at your financial institution

to deposit checks and withdraw cash. Yes ____
No_____

2. You can use any ATM to make withdrawals.

Yes____ No_____

3. You can use your ATM card in some stores to pay

for purchases. Yes____ No____
Money Orders

Some people chose not to maintain a checking

account and use money orders to pay their bills.
Money orders can be purchased at banks, postal
offices, and some retail stores. Cash must be used
to purchase the money order. A fee, ranging from
$.0-$3.00, is charged for issuing it.
• A money order looks and functions like a check.
You must fill in a “pay to the order of” line and
sign it. You keep a copy or portion of the money
order for your records.
• Always fill in the payee’s name on the “pay to the
order of” line as soon as you receive the money
order. Until this information is recorded the
money order is the same as a cash and may be
used by any one.
3 ways to cash a check without a bank account

1. Take a photo ID and the check to the bank on

which the check was drawn.

2. Ask a friend to endorse the check and cash it for

you.

3. Go to a check-cashing store. Be prepared to

present a photo ID and to pay a fee.