Check Writing and Budgets

1
Check Writing and Budgets

• Fixed vs. Flexible

2
Check Writing
Date of check
Company or personal name
Amount for check
Written numeric amount
Your legal signature
Memo line
3
Company or Personal Name

• Write the full and correctly spelled name of the
  person or company you are writing the check to
• Ex. Lenny Fitzherbert NOT L Fitzy
• Ex. Walmart NOT Wally World
• In order to deposit or cash a check, the spelling
  must be correct
• Ex. Ulrich, NOT Ulrick

4
Memo line

• Write something that will trigger in your mind
  the reason for writing the check just in case you
  forget
• It will also help you remember which payment it
  is within monthly payments
• Ex. March 2012 rent, September daycare, T-shirts
  for volleyball

5
Amount of the Check

• Always fill in the numeric amount completely-
• 120.00 not 120
• If there is extra room where you have written it,
  draw a line so that no one can add additional
  zeros or numbers
• 120.00-----

6
Written Numeric Amount

• On this section, write the numeric amount as
  shown below
• One hundred twenty dollars and 00/100
• One thousand four hundred fifty-two and 67/100
• Do not use the word AND unless you are moving on
  to the decimal amount.

7
Practice

• Write these amounts in extended form
• 1,345.89
• 35.78
• 202.00
• 170,450.50
• 476.02

8
Legal Signature

• You will use a legal signature when signing
  important documents.
• It does not have to be your full name, but it has
  to be consistent
• Practice now what will be your legal signature
• IT MUST BE IN CURSIVE

9
Practice

• Practice now on your check writing exercise.
• Remember all parts must be included

10
Fixed Expenses

• Fixed expenses are those that do not change
• Either the amount does not change, or your need
  for the item will not change
• Utilities
• Rent
• Car Payment
• Daycare costs, etc.

11
Fixed Expenses

• You should budget FIXED expenses first
• When your budget is not working, fixed expenses
  should be the area that remains untouched when
  re-budgeting

12
Flexible Expenses

• Flexible expenses are those which change every
  month
• They may change in amount you pay or in whether
  or not they are included in every months budget
• Examples include eating out, entertainment, cell
  phone bill, cable tv and internet, etc.

13
Flexible Expenses

• When your budget is not working and something
  must be adjusted, you should first look at what
  FLEXIBLE EXPENSES you can adjust
• For example, if you are short 100, can you lower
  your cable bill or cut out your cell phone bill
  completely?

14
Family Finance Project

• Please get in groups of 4 and prepare to draw
  your family for this project
• We will work on this MAJOR grade until
• March 19, 2013
• Today you will receive your fixed expense
  budgeting activity and your salary information