CHECKING VOCABULARYLesson 1

CHECK

• A check is a written, dated and signed slip of paper that contains an unconditional order from the drawer that directs a bank to pay a definite sum of money to a payee.

• The money is drawn from a banking account, also known as a checking account.

DEBIT

• The amount of money you record on a check it called a debit.

• A debit card is like a credit card, but you use the money in your checking account. It’s just like writing a check, but faster.

AMOUNT LINE

• The amount line of the check is were you write the amount of money your debit will be using words.

• After you finish writing the amount, fill in the rest of the amount line with a line or squiggle.

• The box next to the line is where you write out the amount in numbers.

SIGNATURE LINE

• The signature line is at the bottom of a check.

• You must sign it with your signature or the check is not valid.

ENDORSE

• When you endorse a check, you sign the back of it on a special line.

• After signed, the check is ready to be deposited by you, or whoever you endorsed to deposit it.

VOID

• When a check is marked void, you or anyone else cannot use it.

• It is essentially canceled.

• This is helpful if you made a mistake when writing a check or if your employer asks for a personal check for their records.

BALANCE FORWARD • The amount of money that was in

the account before any of its transactions were applied, so that "opening balance" might also be a reasonable name for it.

• This is also used in a way that a ``balance forward'' is used in a ``transaction register'' (or check book) - or (even better), in a checking account statement that you might receive from your bank.

CREDIT

• In a checking account, credit is when money gets added to your account.

• This happens if the bank makes a mistake, or your identity gets stolen.

• Credit cards allow you to “borrow” amounts of money that you later pay back.

ACCOUNT NUMBER

• Every check has your account number on the lower left hand corner.

• It is important to know its location because you will need it when setting up automatic debits, or payments to your checking account.

STUB

• A part of a check that is kept for record keeping purposes.

• For example, the stub is the part of a payroll check that includes information about the current paycheck as well as payments to date.