Standard 3

Objective: The student will show understanding of common financial instruments and demonstrate the ability to track transactions.

Evidence:

A. Provide an example that demonstrates your understanding of how to write a check.

The date on the top line, Who the check is to on the second, the box is for the amount of money is numbers, the third/largest line is for the amount in letters, bottom left is a description for why you wrote the check, the bottom right is for you Unique signature.

B. Provide example(s) that demonstrates your understanding of how to accurately record all financial transactions (e.g. debit card, credit card, cash, etc.) in a check register.

Start with your income, put the date, check number, description, amount in or out, and your ending balance. Repeat for every check written.

Reflection:

Write a reflection that explains why it is important to keep a check register and/or track financial transactions; this should include but is not limited to the significance of an overdrawn account.

Keeping track of your finances is a big deal as it shows you how much money you have to spend. If you do not keep track of your finances and write a check for to much money that is in your account, you account will get over drawn. When your account is over drawn, your check doesn't go through and you get a fee. So if you write a check for $25 and you only have $15 you will be over drawn $10 and the check will not go through. Now your account is back at $15, the person still hasn't gotten their money and you get a $30 fee. Now you are over drawn $15 and the check tries to go through again and now your over drawn $40. This continues to happen if you don't add money to your account and you have already paid a lot of money in fees that could have been avoided by keeping track of your finances.