BENEFITS OF HAVING A CHECKING
ACCOUNT.—One benefit of having a checking
account is safety. It is safer to carry checks than money.
Another benefit of having a checking account is proof of
payment. A canceled check is proof that you paid a bill.
Also, having a checking account is convenient. A
checking account allows you to receive and spend your
money without carrying cash. Also, a checking account
lets you pay your bills through the mail, rather than in
person. Another benefit of a checking account is that it
lets you establish credit. A well-maintained checking
account is an asset to establishing and obtaining credit.
Finally, a checking account helps you budget your
money. Keeping a record of checking activities helps
you budget your expenses and income.
As you need money, you draw or transfer funds by
writing a check. You can issue a check payable to
another person or to a company to pay bills or to get
cash. A checking account provides a canceled check as a
receipt of payment. Also, checks are available with
carbonless copies of the original check. This
easy-to-maintain method can conveniently help you
manage your financial affairs.
Before you open a checking account, ask the bank
or credit union the questions shown in the following
chart.
17-8
Student Notes:
Figure 17-3.—A sample deposit ticket and corresponding check register entry.
