Guest Speaker Today: DeVry

Our guest speaker today is Mike Dobkin from DeVry University.  He will be doing an "Interactive Careers" demonstration.

You will be receiving credit for being respectful and attentive during the presentation.  If you are disruptive, ask meaningless or off-topic questions, or otherwise fail to participate, you will receive a zero for the day.

If you have suggestions or ideas for guest speakers, please let me know.

Careers, Finance, and Character: It's a Wonderful Life

"It's a Wonderful Life" is a movie that was released almost 60 years ago -- in 1946.  It's about an angel who helps a compassionate but despairingly frustrated businessman by showing what life would have been like if he never existed.

At this time of year I show this movie for several reasons:

1. It's a good study of someone who has dreams of what they want to do but situations in life move them in another direction.
2. It's a good example of how finance in a savings and loan situation works.
3. It demonstrates a "run" on a bank.
4. It does a good job of showing how our great grandparents (and great-great grandparents) weren't really so different from us.  Whether we [or they] are willing to admit it or not.
5. It shows how a good, intelligent, hard-working person can still suffer from depression.
6. It reminds us that we don't always know the difference we are making in others' lives.

There aren't a lot of requirements for this movie other than paying attention, so I will have computers off during this time.

I have a worksheet for you to complete for the first and second halves of the movie which I will give you in class, but if you are not here and you would like another copy you can download it. (Here)

I'll be showing it in class, but here's an online version that you can watch:

Finish Banking Packet

Today I would like you to do the following:

• Finish all checks, deposit slips, and check registers entries
• Reconcile / balance all debits and credits.
• Check off every deposit
• Check off every check
• Check off every ATM or Debit transaction
• Make notes of any missing checks
• Make notes of any other discrepancies
• Check your final balance with someone else in the classroom -- or two people if one of your balances doesn't match
• When turning in your packet, make sure you include:
• Completed Bank Application
• All Checks
• All Deposit Slips
• All Check Registers
• Both Monthly Statements (with checked off items)
• Complaint Letter (for damaged DVD) -- if you still have it.
• Turn in your packet with your name clearly written on the front.

Continue Banking Simulation

Today we're going to finish month two of our virtual checking accounts.  Follow the correct procedure for each of the following transactions, including writing checks (if applicable), writing items in the Transaction Register, etc.

• 3/22 - You have a garage sale to save up additional money to cover your upcoming summer college class.  You manage to collect the following amounts which you will put on your Deposit Slip:
  + 37 quarters
  + 18 dimes
  + 12 nickels
  + 55 pennies
  + 6  $20 bills
  + 4  $10 bills
  + 7  $5 bills
  + 41  $1 bills
  + Check #1824 for $20.00
  + Check #154 for $16.50
  + Check #913 for $100.00
  + Check #8213 for $125.50
• 3/23 - You receive an Income Tax check for last years taxes.  The check (#52280226) is for $473.29.  Fill out a Deposit Slip for this check and indicate that you would like $100 cash back which you will use to go out with some friends.  Make sure to put this in your Check Register.
• 3/24 - You stop by Games R' Us to buy a new video game.  Write a check for $80.29.
• 3/25 - You decide you need a new hat.  Use your debit card to buy your hat from Wig Out for $22.95.
• 3/25 - You need a new shirt to match your cool new hat.  Write a check for $24.17 at Cold Topic.
• 3/25 - You buy a belt, socks, and underwear at American Dog.  Write a check for $33.91. 
• 3/26 - You and your friends go to dinner and the movies.  You use your cash to pay $11.12 at McTaco King.  You also use your cash to pay $8 to get in to the movies and $8 for popcorn at Stadium 6 Theater.
• 3/27 - You want to go clubbing this weekend so you need to fill up your car with gas.  Spend $42.11 on gas at Tweakin' Beacon on your debit card.
• 3/28 - You drive to Sacramento and pay the $10 cover charge at Yo'Mamaz with cash.  You use your debit card to buy soda's amounting to $24.  They also charged $2 to use your debit card.
• 3/29 - Your friend is arrested for being in a bar fight.  Write a check for $250 to bail them out.  Make the check payable to The Sacramento Police.
• 3/30 - You're really tired the next morning and decide you need some coffee.  Stop by MoonBucks and use your debit card for $11.54.

When you have finished, compare your last amount with your neighbor and try to figure out who's wrong.  :)

Problem With a Product

You sit down to watch the movie you purchased on February 27th and realize the it's broken.  You try to call the store but they say they can't do anything over the phone.   They suggest you speak to Mike Jackson, the manager.  Rather than try to call back on a day that he is at work, you decide to write a more official complaint letter.  Looking up the address, you see that the video store is located at 518 South School Street, Kelseyville, CA 95451.

Below is a template for a complaint letter that you can use as a reference.  Remember that everything in the page lines up on the left, and you always begin with YOUR name and address.

Save a completed copy of your later to your Thawspace as "Complaint Letter".

Begin Second Month's Transactions

Today we're going to begin working on month two of our virtual checking accounts.  Follow the correct procedure for each of the following transactions, including writing checks (if applicable), writing items in the Transaction Register, etc.

• 3/03 - Looks like it's time to hit the grocery store again.  You go to Super Mega Mart to stock up on some necessities because buying in bulk will help you save money.  Write a check for $227.32 to Purity Market.
• 3/05 - You receive your Netmoviez bill in the mail.  Send a check for $10.14 to cover it.
• 3/10 - You receive your cell phone bill in the mail.  Write a check for $47.52 to American Cellular.
• 3/14 - Your electric bill has arrived.  Write a check for $88.14 to Kelseyville Electric Company.
• 3/15 - You receive your paycheck today.  Complete a deposit slip and log it in your Register.
• 3/16 - You have some engine trouble with your car.  After the mechanic looks at it, you discover it's going to be $316.77 to replace your water pump and radiator hose.  Write a check to Kelseyville Car Repair.
• 3/17 - You sill want to put away some money for emergencies, but you can only afford $50 this month.  You stop in at the bank and have the teller move $50 from Checking to Savings.  Remember to remove the money from Checking in your Register.
• 3/18 - You need to drop by the grocery store to pick up a few things.  Write a check to Purity Market for $23.22.
• 3/19 - It's time to pay your car insurance again.  Go online to the Chameleon Insurance web site and submit your electronic payment for $118.33.
• 3/19 - You realize you're gas tank is just about on empty.  Use your Debit Card to buy $54.32 in gasoline at Filler Up Gas & Go.
• 3/21 - You stop at Restored Treasures, a second-hand shop that sells furniture, and buy a couch for $100.  With tax, the total price comes to $109.75.  Write a check.

Reconcile Bank Statement / Balance Checkbook (Month 1)

Today we will be balancing (or "reconciling") our first month's transactions.  Approximately once a month you will receive a "bank statement" which shows all debits (checks, ATM withdrawals, automatic deductions, debit charges, transfers, etc.) and credits (deposits or transfers to checking).  Your bank statement also shows check numbers, dates the transactions were made, daily balances, bank fees, etc.

There is a copy of your bank statement in the back of your packet.  You should have a statement for last month (the one we need today) and one for this month (which we will use in a few days).

Begin going through your check register and comparing the items against the bank statement.  If the items match (check number, amount, etc.) put a check mart next to the item on your bank statement and a check mark in the "check mark column" next to the item of your check register.

Repeat these steps going through deposits/credits.

Next, figure out what has not been taken out of [or put into] your bank account.  Circle them so you can make sure they clear by next months statement.  Do your accounts balance?

Begin Checking

Today we're going to begin working on our virtual checking accounts.  Get your envelopes out and get ready to begin your first months transactions.

Follow the correct procedure for each of the following transactions, including writing checks (if applicable), writing items in the Transaction Register, etc.

• 2/01 - You take a trip to Curl Up & Dye -- a little beauty parlor and barber shop in downtown Kelseyville.  The cost to do your hair (including tax and tip) was $32.  Write a check.
• 2/01 - You receive your first paycheck from Griffith Enterprises which you deposit into your checking account.  Complete a deposit slip and enter the amount in your Register.
• 2/02 - You decide that you need a new pair of shoes for all of the standing and walking you will be doing.  You drop by G-Mart and find a nice pair of shoes.  Rather than write a check you decide to use your Debit Card for the $52.79 total.
• 2/03 - You go to lunch with a few of your colleagues at McTaco King.  Use your Debit Card to pay the $6.42 total.
• 2/04 - Rent is due on the 1st of the month, but it's not late until the 5th.  Write a check for $600 to cover February rent, payable to Shady Acres Apartments.
• 2/06 - The cupboards are looking a little bare and you have a friend coming over for dinner.  You go to the grocery store to stock up on some necessities.  Write a check for $184.69 to Purity Market.
• 2/07 - You receive your Netmoviez bill in the mail.  Write a check for $10.14 to cover it.
• 2/11 - You receive your cell phone bill in the mail.  Although money is running a little low, write a check for $34.71 to American Cellular.
• 2/15 - Thankfully you receive your paycheck today.  Complete a deposit slip and log it in your Register.
• 2/17 - Your electric bill came in.  Write a check for $74.61 to Kelseyville Electric Company.
• 2/19 - You're in need of some more groceries.  You drop by Purity Market and spend $32.17.  Write a check.
• 2/22 - You decide to put away some money for emergencies.  You stop in at the bank and open a Savings account by depositing $250.  Remember to remove the money from Checking in your Register.
• 2/23 - You decide to do some decorating in your apartment.  You stop by G-Mart and buy some wall hangings, dishes, and a house plant.  Write a check for $59.90.
• 2/24 - It's time to pay your car insurance.  Go online to the Chameleon Insurance web site and submit your electronic payment for $118.32.
• 2/25 - You stop on the way to work to get gas.  Use your Debit Card to buy $41.17 in gasoline.
• 2/26 - You and some friends decide to go to Rock & Bowl at Mega Bowling Alley.  Rather than drive back to your regular bank, you stop at an ATM at another bank and withdraw $40 from your checking account.  The bank charges you $2 for this service.
• 2/27 - You have a movie reserved at The FlixBuster.  Write a check for $21.55.
• 2/27 - When you arrive at FlixBuster you discover that they don't take checks.  VOID the check you wrote to FlixBuster and use your Debit Card instead.
• 2/28 - The Wilderness Girls dropped by selling cookies.  You buy three boxes of Minty Goodness at $4.00 per box.  Write a check to cover the cost.
• 2/29 - It's time to pay your monthly Internet bill.  Write a check to InterWebz for $39.49.  While you are there dropping off your payment, the company offers you a discount if you have Automatic Withdrawal from your checking account.  VOID the next check to leave with them and next month you will receive $5 off your bill.
• 2/29 - You stop at the SuperQuickyMart to pick up a gallon of milk.  Use your debit card for the amount of $3.41.
• 3/1 - You receive another paycheck.  Deposit it into your checking account.  Make sure you fill out a Deposit Slip to go with it, then log it in your Check Register.
• 3/2 - Your good friend has asked to move in with you.  You decide that it would really help with the cost of the rent, so you get permission from the landlord.  Your friend gives you a check for $300 for their half of the rent and you write a check for $300 for your half of the rent.  Both checks are made payable to Shady Acres Apartments and cover rent for April.

Begin Banking Simulation

You recently graduated from Kelseyville High School and got hired at Griffith Enterprises in Kelseyville, California as an office assistant producing educational videos and multimedia.  Griffith Enterprises is located at 5480 Main Street, Kelseyville, CA  95451 and the phone number is (707) 279-1234.

Your beginning salary is $2000 per month and you will be paid on the 1st and the 15th of each month.  You will receive your pay in the form of a voucher check which is typically divided with perforations in two parts -- one part being the actual check (the Net Amount of your pay) and the other part being the voucher (or record) of how your pay was calculated.  You typically Deposit the check portion into your bank account and file the voucher away for your records.

In discussing your salary with your new employer, you have learned that the following items will be deducted from your paycheck:

• Federal Income Tax:  Approximately 15% of your income goes to Federal Income Tax.  This can be less or more depending on your situation.  For example, if you are single and make less than $8,500 in a year you may only have to pay 10%... but if you make over $34,500 you may be paying 25-35%.  (And depending on your deductions and credits, you may get some [or all] of that money back in an income tax refund at the beginning of the next year.)
• State Income Tax:  Current Estimates are that California Income Tax is equal to about 9.9%.
• Social Security:  Currently we are paying approximately 4.2% of our pay toward Social Security; a program provided by the Federal Government that includes old age and survivors' insurance, old age assistance, and unemployment protection.  This is sometimes listed as FICA (Federal Insurance Contribution Act) on a voucher [or pay stub].
• Medicare:  Currently charged at 1.45%, Medicare is used to cover medical costs for older people.
• Medical/Dental:  Because you are a new employee, you are not yet eligible to receive medical or dental insurance.  Once you are eligible you will be asked to select from plan options.

Because there is a full-service bank next door, you decide to leave your old bank and set up an account with this closer bank.  Complete a New Account Application for Bank of KHS (download one here) using the following information:

• ACCT #: (leave blank for now)
• Required Signatures: 1
• Account Type: Free Checking
• SSN: (use 123-45-6789)
• Title: Your own full name
• Business or Occupation: Multimedia Production Assistant
• ATM or Debit Card?   Yes
• Internet Banking?   Yes
• Previous Bank:  Clear Lake Savings & Loan: 101 Lakeview Drive, Clearlake, California 95422
• Previous Acct. #: 8675309
• Amount of Deposit: $226.68  (Description: Transfer)
• Type of Personalized Checks:  Regular Free
• No., Style, Color, and Cover:  (leave blank)
• Starting Number:  101

Because we are starting over with a new bank, we will also begin a new Check Register.  Fill out the front of your check register with your information.  We are bringing $226.68 from our previous bank into our new bank, so open the check register and enter that amount in the "Beginning Balance" spot.

One method of keeping track of items in your checkbook is to use one line per transaction.  For our simulation, we will be using two lines per transaction -- the actual transaction on the first line and the balance and additional information on the second (usually shaded) line.

Stokes Tourney / Finish Missing Work

Today and tomorrow are going to be a bit hectic because of the Stokes Tourney.  I'd like to use these two days to complete any missing assignments.  Beginning Monday, December 9th I will only accept projects from after that date.

Remember that we have two more weeks and then Winter Break.

Guest Speaker: The Art Institutes

Today we have a guest speaker from The Art Institutes in California.  They have campuses all over, including areas like Sacramento and San Francisco.

As always, I expect respect, attention, and valid, appropriate questions for our guest speakers.

Credit Card Research Project

Today we are going to be comparing three different credit offers.  I will provide you with two and your homework is to find a 3rd.

• I will pass out a Credit Card Comparison worksheet [you can download one Here if you need one at a later date].
• Fill in the blanks for your 3 different credit offers.
• Turn in your results page.

Credit Card Offers:

• Offer #1
• Offer #2
• Locate an offer on your own

Next I want you to look at this offer I got in the mail in 2010.  It is not edited to make it look worse -- this is how it came.  It's in a folder pamphlet form (which I will show everybody tomorrow) but I scanned both sides so you could see the details.  You can click the picture to read the small print:

When you are finished with this project, work on getting any missing work turned in.

ADDITIONAL HOMEWORK:  Interview one adult who has [or has had] credit cards using the provided worksheet.

Beginning Checking: Checks and Registers

Today we're going to begin a unit on using a checking account.  First we'll do a math worksheet going over percentages, decimals, and writing amounts out in longhand. (I will be handing out a copy in class, but you can get a copy here)

Next we will explore the general layout of a personal check:

Finally we will do a quick simulation of writing checks and using a check register.  I will be passing out a worksheet with three checks and a register (you can view a copy here: Checks with Register).  Use the following scenario to complete your worksheet:

• You begin your checking account today (12/02/13) with $135.72 from your piggy bank.
• You receive a Check for $550.00 from your work and Deposit it to your checking account on 12/03/13.
• Write a Check for your rent on 12/04/13 for $525 to Kelseyville Green Apartments.
• You go to dinner at Lyndall's on Saturday Night (12/05/13) for $18.27 and use your Debit Card.
• You send a Check to Edward Teach in the amount of $31.19 on 12/06/13 for a movie you bought on eBay.
• You receive a Check for $550.00 on 12/07/13 from your work and you Deposit it to your checking account that afternoon.
• You write a Check for your car payment to Airport Auto Brokers on 12/08/13 in the amount of $224.72.
• You use Online Banking to pay $124.25 for your PG&E bill on 12/09/13.

Compare your ending balance with a neighbors to verify your accuracy.

Here are a couple video clips to explore: