Teacher Lesson Plans

Beginning/Low-Intermediate Level
Unit 1 - Basic Banking Services

LESSON ONE: Introduction to Banking Services and Checking Accounts

Objectives | Materials | Activities | Web Links

Lesson 1 Objectives

• Identify vocabulary and concepts related to basic banking services.
• Identify checking account services and understand related fees.
• Learn to write a check.
• Practice balancing a checkbook to avoid banking penalties.
• Language and/or EFF skills practiced: listen actively; use math to solve problems and communicate.

Lesson 1 Materials

• Overhead 1-A: Free Checking Picture Story
  
  
• Worksheet 1-2: Free Checking Picture Story and Activities
• Worksheet 1-3: Checking Account Fees for Services
• Worksheet 1-4: Numbers and Check Writing
• Worksheet 1-5: The Bounced Check Game

• Additional Materials: Scissors: Two student generated cards "Good Check" and "Bounced Check"

Lesson 1 Activities

Print All Lesson Materials

Activity 1-1: Checking Accounts and Related Fees

• To warm up to the topic of banking services and checking accounts, and the picture story, write the word "free" on the board, ask students if they know what the word means. Ask what things are free. Then ask if anyone has a checking account. Ask other related questions like:
• What is the name of your bank?
• Do you have a checking account?
• Do you have a savings account?
• Is your checking account free?
• Do you write checks? (maybe show a sample check of your own or from the picture story.)
• Ask if it is difficult to write the numbers on checks - for example, write the amount $40.25 on the board and ask students to write out the numbers like they need to on a check. You don't need to review answers, just stop students after a minute or two and ask, "Is it difficult to write the numbers?". You'll be teaching and practicing numbers later in the lesson, this is just to get a sense of students' knowledge.
• Ask if students' banks charge any "fees" for their bank account. Discuss the word fee if they don't know what it means. A fee is extra money charged for bank services or penalties (problems with account). Also introduce the term "bounced check". Ask if they know what bounce means - bounce a ball for example. Explain that a bounced check is a bad check. The amount of the check is more than you have in your account. As an introduction to how bounced checks fit in with banking terms, write on the board:
• Bank of Virginia
• monthly service fee: $10
• bounced check fee: $15
• You don't need to go into much detail, just try to draw attention to the topic of checking accounts and related fees.

Activity 1-2: Free Checking Picture Story and Activities
Overhead 1-A: Free Checking Picture Story
Worksheet 1-2: Free Checking Picture Story and Activities

• Following the instructions for Picture Story Best Practices, generate a story and complete related picture story activities. You can use the printed story below for telling the story to students, other reading/writing activities, and/or for understanding the story sequence.
  
  Free Checking!

Alex has $200.00 and wants to open a checking account.

He sees a sign in a bank window for a free checking account. The bank employee says, “Your checking account has many fees. Be careful and write good checks.”

Alex loves soccer and wants a big screen TV.  At an electronics store, he buys a TV for $500.00. He doesn't have $500 in his bank account. The bank employee is angry and charges Alex a bounced check fee.

Alex goes to the supermarket. He writes the wrong amount on the check. The bank employee is very angry. She says, “Take this list of numbers and use it to write checks”.

Alex goes to a department store to buy clothes. He looks at the numbers. He writes a good check.

Activity 1-3: Basic Checking Account Fees for Services
Worksheet 1-3: Checking Account Fees for Services

• For your own understanding, and to help students understand what documentation is needed to open a bank account, print out and review the web page linked below from the Social Security Administration. Ask students who have a bank account what documentation they needed to open the account (social security number, passport, etc.). Make two lists on the board, one for citizens and one for non-citizens. List documentation in its appropriate column and be sure your lists contains only the documents listed in the link below.
• Make students aware that they can save money by shopping around for the lowest banking fees. Bring in sample brochures from nearby banks that include basic checking account information. Have students do the same. To help students understand how to compare fees, introduce the following terms if your students can understand them.
• minimum balance - amount of money needed in an account before the bank charges a fee
• direct deposit - money goes directly to your account by wire transfer (for example, an employer's paycheck)
• interest rate - extra money the bank adds to your account for keeping money in account
• overdraft - when you spend more money than you have in your account
• overdraft protection - service provided to help you if you spend more money than what you have in your account (similar to a line of credit)
• Have students look at the chart in Worksheet 1-3 and work on their own to answer the questions about the checking account services, then compare answers with a partner.
  Answers:
  1) True 2) True 3) False 4) True
• Add more information to the chart (like "free with direct deposit") depending on student language level. Also, encourage students to seek information in their own language at banks to compare fees and services. (See Web Links section below.)
• Extend this activity, and make it personal and practical by having students find out what the fees are for their checking account and/or for an account at another bank. They can either call their bank or stop by. You can prepare students for the language needed to ask these questions. Or, they can use their native language if needed, depending on their language level. Have students bring their answers to the next class and compare answers. You can use an information grid to solicit the answers from one another. For those students who were not able to complete the assignment, hand out sample fees. As a group, find out what neighborhood bank has the lowest fees.

Activity 1-4: Numbers and Check Writing
Worksheet 1-4: Numbers and Check Writing

• As a warm up to this activity, refer to the picture story again. Point out pictures where Alex writes the dollar amount incorrectly and overdrafts on his checking account.
• Again, ask students if they have difficulty writing out the numbers on checks or understanding numbers when someone says them.
• Let them know that for the next several activities they will have a chance to practice numbers.
• For Activity 1-4 page 1, simply read the numbers and have students repeat after you. You could have others tape record their voice saying the numbers so students can practice listening to a variety of voices. Have students cut out the chart and keep it with them whenever they write checks.
• For activity 1-4 page 2, decide and circle for yourself the numbers you will dictate for numbers 1-10. For numbers 11-15, first review with students how to say the numbers inside the sample checks, then dictate these amounts and review all answers:

11.  $15.20 (answer b) say "15 dollars and 20 cents"
12.  $5.37 (answer a) "5 dollars and 37 cents"
13.  $13.10 (answer a) "13 dollars and 10 cents"
14.  $160.12 (answer b) "one hundred sixty dollars and 12 cents"
15.  $190.01 (answer a) "one hundred ninety dollars and 1 cent"

• For the last activity in Activity 1-4, write out a sample check amount on the board, like you see in the sample check. Then have students complete the activity by writing in the correct dollar amount. Encourage them to use the chart they cut out for reference. Ask students to compare answers with a partner as they finish, and review correct answers as a class.

Activity 1-5: Paying Monthly Bills - The Bounced Check Game
Worksheet 1-5: The Bounced Check Game
Additional Materials: Two student generated cards "Good Check" and "Bounced Check"

• The purpose of the following activity called "The Bounced Check Game" is for students to practice their listening skills. In addition, and more importantly for improving financial literacy, the game will be an introduction to the concept of balancing a checkbook. It also shows that by using math to solve problems, they can avoid banking fees.
• As a warm up, ask students, "Do you balance your checkbook on a regular basis?" Introduce the term "check register" and show students yours if you have one and/or ask students if anyone has a check register. You can also print out a sample check register from www.practicalmoneyskills.com (see direct link below). Describe a register as a place to write down all the checks you write, and keep track of how much money you have available in your account. Ask students if they review their accounts by phone or online. Explain that these options are available for most accounts.
• Begin the game by putting students into groups of three to five students. Pass out one copy per group of Worksheet 1-5, which has a blank chart that resembles a check register. In addition, tape one copy of the chart per group to the wall.
• Write the words "good check" and "bounced check" on the board and demonstrate writing these words on an index card or piece of paper. Pass out two blank cards or pieces of paper per group, and have each group create one that says "good check" and another that says "bounced check". (You can make these up ahead of time.)
• Next, read the amounts from the completed chart below, one by one, stopping after each amount for follow up. For example say, "car loan - $110". Repeat the number only two or three times. (For this activity, students need only write the numbers as numbers. They don't need to write out the dollar amount.)
• Have students come to a consensus on the amount they heard you say and have them write the amount on their group's chart (at their table).
• Once all groups have written an amount, repeat the number one more time as a final check. Then, have a representative from each group write the amount on their group's chart on the wall. Put a check mark by correct answers.
• Do the same for the second amount. After checking the answer for the second amount on their charts on the board, have students practice some math. Ask students to add up the first two amounts. Refer to the sentence on the board - Alma has $550. Ask if Alma has enough money in her account to write a "good check" or a "bounced check" for the amount you just added . Give groups a moment to decide, and come to a consensus. All at the same time, have groups hold up the appropriate card. Let groups know if they are correct or not.
• Repeat this process for the rest of the amounts, pausing for adding up the amounts after each addition. Again, after verifying the correct answer, ask students to do the math and decide if Alma will write a "good check" or a "bounced check" for each number added to the check register. Note that the chart below is for teacher use. Students' chart should match this one once they have filled in all the numbers.
  
  Alma has $550 in her checking account. Can she pay her bills this month?

Money in Checking Account	Monthly Bills
$550	Bill	Amount	Subtotal
	Car Loan	$110
	Car Insurance	$85	$195
	Credit Card Payments	$150	$345
	Telephone	$30	$375
	Cell Phone	$50	$425
	Doctor	$100	$525
	Cable TV	$30	$555
	Gym membership	$50	$605
	Monthly Bill Total		$605

• Once students have checked all the amounts, have them answer the questions at the bottom of Worksheet 1-5. They will need to refer to the chart in Worksheet 1-3 for the answer to number 3.

Answers:

1. No 2. Yes 3. $15

• As an at extension activity at home, students can create a similar chart of their personal income and expenses. For your information, this topic is covered in more detail in the Goals and Budgets module of the curriculum.

Web Links