How to Bounce Back from a Bad Check - hotchecks.net

How to Bounce Back from a Bad Check

...and stay financially healthy! A financial training component of state statutes regarding issuing and passing a check without proper funding.

Workbook Developed by BounceBack Services, Inc.

How to Bounce Back from a Bad Check And Stay Financially Healthy WORKBOOK WORKSHEETS Worksheet #1

Checkpoints

Throughout your Financial Training textbook, you will be given answers consisting of different letters or numbers to fill in the spaces provided in the table below. Correctly completing these financial excercises is required to pass this program. The checkpoints are easy to fill in if you study the entire program.

Checkpoint 1 Checkpoint 2 Checkpoint 3 Checkpoint 4 Checkpoint 5 Checkpoint 6 Checkpoint 7 Checkpoint 8 Checkpoint 9 Checkpoint 10 Bad Checks

Transfer these answers to your Training Verification Form. If you have reached the end of the program and not successfully filled in all of the ten checkpoints, you need to review your textbook one more time.

Copyright @1999, 2004 BounceBack, Inc.

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Workbook — Financial Training for Checkwriters


The Check Register

In the Check Register below we have filled in the following transactions:

1. We deposit $435.34 on May 11. This is a new account. There is no previous balance. 2. We write check number 1001 to Family Market on May 12. We purchased groceries. The amount of the check is $28.12. 3. On May 14th we use the ATM to get $25.00 in cash.

4. On May 16th we write check #1002 to Quick Lube for an oil change. The total comes to $15.65.

Check Register Number

Date

Description of transaction

Payment/Debit

Deposit/Credit

Balance

0 00 5/11 1001

Deposit

5/12

Family Market Food ATM 5/14 Cash 1002 5/16

Quick Lube Oil change

435 34 28 12 25 00 15 65

435 435 28 407 25 382 15 366

34 34 12 22 00 22 65 57

Continue to fill in the check register above with the following transactions:

5. On May 17th we fill up the car at Joe’s Pump. The total comes to $12.91. We pay using check number 1003. 6. On May 18th we use the ATM to get $20.00 cash.

7. On May 18th we are going to the grocery store (Family Market). The total for groceries comes to $35.19. We pay using check number 1004. 8. On May 20th we deposit the paycheck ($563.95).

9. On May 29th we pay the rent ($433.12) using check number 1005.

What is the total amount in the account on May 20th after the deposit? ____________ Copyright @1999, 2004 BounceBack, Inc.

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The Real Cost of Passing a Bad Check

The amount of the bad check is normally small in comparison with all the other fees and fines that you have to pay after passing a bad check. In the chart below, fill in the costs that you have had to pay for your bad check: Bank Charge for the Check Writer The bank will often dhare a fee to your account for the extra work you aare causing the bank because your check bounced.

Victim/Merchant Fee:

In some states, the store can chare a fee for returned checks. This is normally posed in the store.

Normally there are also other costs, both emotional costs and hard “out-of-pocket” costs. Example: Stress in your relationship with your spouse, job related costs (absence due to court appearance, etc.) and other. List a few of the other emotional and expenses that you have experienced:

$

$

Fee to District Attorney:

In most states, the district attorney will charge an administrataive fee for allowing you to pay the check prior to going to court.

$

Education Fee:

Many courts and district attorney offices require offenders to take school programs. There is normally a fee for these course and classes.

$

Court Costs:

If you do not pay your check before your dcase goes to court, you most likely have to pay court costs. These costs vary, but can be over $100 even for small checks.

Warrant Fee:

$

Some jurisdictions also charge a warrant fee in addition to the court costs.

$

TOTAL

$

Worksheet #4

Reasons for Me Not to Write Bad Checks

In your life there are many reasons for you to not write another bad check: For some people it is to be a good example to the kids. For some it is a desire not to break the law. For others it is to avoid the embarrassment of being chased by law enforcement. For others it is to build a good credit report for the future. Write down your reasons for not passing a bad check:


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Reconciling Your Checking Account

You have just received your bank statement. It is now time to reconcile the checking account. Use the Check Register that you created in Worksheet #2. 1. The ending balance in the bank state• ATM on May 18th for $20.00. ment is $862.42. Fill in the amount • ATM on May 14th for $25.00. in the chart below at “Ending balance 4. In Worksheet 2,in the check register, on bank statement”. put a check mark over the amount of 2. All deposits are included in the bank those checks and ATM withdrawals statement. Put a “0” in the chart (put the check mark so that you can below at “Deposits not included in still read the amount). the bank statement” 5. Fill in the number and the amount 3. The bank statement tells you that the of the check(s) that has not cleared following checks and ATM with(#1005) in the table belo at “Checks drawals have cleared: not in the bank statement”. • check 1001 ($28.12) check 1002 ($15.65) check 1003 ($12.91) check 1004 ($35.19)

6. Fill in the total of all checks not in the bank statement in the chart below where it says “SUBTRACT checks and ATM withdrawals not in the bank statement” 7. Total the column.

8. The bank has given you 75 cents in interest. Write this amount in the table.

9. The bank also charged you 25 cents in fees. Write this amount in the table.

10. Total the column to get the REAL BALANCE. Transfer this amount to your Training Verification Form.

Note that the bank statement says that there is over $800 in your account when there in fact is less than $500! All this is due to the fact that your landlord has not yet taken your rent check to the bank. At the time when you receive your statement that check has normally already cleared. When you are looking at the statement you have less than $500 in your account—not $800! Copyright @1999, 2004 BounceBack, Inc.

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My Financial Strengths

There are bright spots even in the darkest financial situation. Those bright spots could be: “I have a steady job that pays $X”; “My rent is very reasonable at only $XXX per month”; “My spouse has a good job that pays well”; “In the past I managed to save money on a regular basis and I am convinced I can do it again!” Find your bright spots! In the space below, write down the bright sides of your financial situation:

My Financial Weaknesses

Identify your biggest financial weaknesses and write them in the space provided below. Also write down a brief action plan. What are you going to do about these weaknesses? Examples of financial weaknesses: “I have a difficult time resisting temptation in stores”; “I can’t keep track of anything, including my finances”; “My rent is too high and I will never be able to keep up”. My Financial Weakness


My Action Plan to Change

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Check Your Financial Health

How fit are your finances? Answer Yes or No to each question. Put a check mark in the box to indicate your answer. Section A Yes No 1.

Do you have a clean and neat area to do your bills and your financial planning?

Do you have an “emergency fund” of at least three months salary in a savings account?

2.

4.

3. 5. 6. 7. 8. 9.

Do you have a savings account that you add to on a monthly basis? Do you spend less than you earn?

Do you avoid major credit card purchases?

Are you spending less and less of your income towards paying debt?

Do you use your savings account only for major purchases and not for monthly bills? Is your total debt on credit cards decreasing?

Are you always paying more than the minimum on your credit cards?

10. Are you paying bills on time most of the time?

11. Do you have a formal plan for your retirement funds? 12. Do you save regularly for your retirement? Section A Total

Section B 14. Do you take out new loans before the old ones are paid off or to pay off other debts?

15. Have you ever borrowed money from one creditor to pay another creditor?

17. Are you near or at the limit of your lines of credit? (Including credit cards)

16. Are you using credit to pay for items that you used to pay for with cash?

18. Do you ever pay bills late because you do not have the money available?

Total the number of Yes and No in Section A

12 Yes 9-11 Yes 5-8 Yes 0-4 Yes

Excellent financial health Good financial health but better planning and spending control will allow you to start saving and plan for the future. Shaky. You need to cut back on credit card use, watch for over spending. Plan your finances. Make a budget. You are in trouble. See below for information on how to contact Consumer Credit Counseling Services.

If you answered “yes” to any of the questions in section B

• You are headed into a credit trap. • You might want to schedule an appointment with someone that can help. Look in your local phone book under Credit & Debt Counseling. Copyright @1999, 2004 BounceBack, Inc.

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How to Bounce Back from a Bad Check And Stay Financially Healthy WORKBOOK FINANCIAL EXERCISES Financial Exercise A (from page 12 of your Textbook)

Goals should be Measurable and Achievable

When you work on your goals you might need to gather information about your current loans and balances. Don’t try to do too much at the same time. It is better to have a few goals and actually achieve them than to have many goals and miss them all. Now it is your turn to fill in your goals in the space provided in the next chart. We have allowed you only three lines. It is important not to overdo goal setting. Don’t set yourself too many goals. The risk is that you will spread yourself too thin and then not being able to accomplish any of your goals.

Monthly Cost or Savings

Estimated

Target

Pay off the care oan in 18 months

$3,600

18 months

$200 (divide $3,600 by 18)

Establish an emergency fund of $1,000 in a saving account within 12 months.

$1,000

12 months

$83 (divide $1,000 by 12)

Pay off credit card in 8 months

$300

8 months

$45 (divide $300 by 8 + interest)

Buy a computer in the next year

$900

12 months

$75 (divide $1,000 by 12)

Estimated

Target

Goals

Your Goals


Cost

Cost

Date

Date

7

Monthly Cost or Savings


How to Bounce Back from a Bad Check And Stay Financially Healthy WORKBOOK FINANCIAL EXERCISES Financial Exercise B (from page 13 of your Textbook)

Making a Monthly Budget

After setting your goals, your next step is to make a monthly income and expense budget, which will help you establish a method of meeting your goals. After that we will balance the budget and that’s the real moment of truth! Now that you have built your goals, the next step is to figure out how you can meet those goals. You need to make a budget. A budget is the actual plan for how you are going to spend your money and can be for any length of time. Making a monthly budget is most practical because many of your expenses such as rent and electricity are paid on a monthly basis. If you are paid weekly you might want to create a weekly budget. There are four steps involved in making a budget: 1. Determine your take-home-pay 2. Determine what expenses you have 3. Determine how much you spend on each expense 4. Balance your budget


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How to Bounce Back from a Bad Check And Stay Financially Healthy WORKBOOK FINANCIAL EXERCISES Financial Exercise C (from page 14 of your Textbook)

Monthly Expenses

Expenses listed are grouped by where they come from. Some expenses show up every month, some just once in a while and some you have all the time. It is useful, when you are budgeting, to separate expenses into the three following categories: Fixed, Periodic and Variable. Check your expenses on the following chart. • Fixed Expenses: These bills and expenses are easy to plan and do not change from month to month. • Periodic Expenses: Bills that show up from time to time. . . some you know about and some you don’t. • Variable Expenses: These expenses and bills vary from month to month. You make the decision every time if you are going to spend the money or not.


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How to Bounce Back from a Bad Check And Stay Financially Healthy WORKBOOK FINANCIAL EXERCISES Financial Exercise D (from page 15 of your Textbook)

Fixed Expenses

Bills like rent, mortgage payments, car payments and your cable do not change from month to month. These expenses are easy to plan and predict for the future. This includes your loan payments. Fill in your expenses in the space provided.


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How to Bounce Back from a Bad Check And Stay Financially Healthy WORKBOOK FINANCIAL EXERCISES Financial Exercise E (from page 15 of your Textbook)

Periodic Expenses

Periodic expenses show up infrequently and sometimes with different amounts. Some of these expenses are easier to predict than others such as insurance premiums that you pay every quarter or every six months, and can be predicted with great accuracy the same way that we predicted the fixed expenses.


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How to Bounce Back from a Bad Check And Stay Financially Healthy WORKBOOK FINANCIAL EXERCISES Financial Exercise F (from page 17 of your Textbook)

Variable Expenses

The last category of expenses is the variable expenses. The good news and the bad news regarding this category is that you have so many variable expenses during a month that it is very hard to track where you actually spent the money. The good news is that this also opens up a tremendous opportunity to save money by just keeping better control of the variable expenses that otherwise seem to slip though your fingers. Using all the information that you have available in form of cancelled checks, credit card statements, old receipts and educated guessing, fill in the amounts of your variable expenses in the following chart.


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How to Bounce Back from a Bad Check And Stay Financially Healthy WORKBOOK FINANCIAL EXERCISES Financial Exercise G (from page 17 of your Textbook)

Balancing Your Budget

The final step in your financial overhaul process is to balance your budget. You will learn if what you have planned in your budget will work, or if you have too many expenses for your income. Ideally you want to put yourself in a position where you have much more income than expenses. Just because you have made a plan does not mean that you can afford the spending you have outlined. Transfer the totals from the charts you previously completed into the following chart. After you have filled in these numbers, total the column. Note that you subtract the expenses from the top number (the income).


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How to Bounce Back from a Bad Check And Stay Financially Healthy WORKBOOK FINANCIAL EXERCISES Financial Exercise H (from pages 19 and 20 of your Textbook)

Wants and Needs

Needs: Think of these, as the basic bills you need to pay each and every month — like your mortgage and your car payment. Wants You may be one of those people whose basic costs are under control, but you still find it tough to put money away at the end of the month.    Respond with True or False to the following statements:  

If you marked True more than once, you are probably heavy on the Must-Haves.

home, I worry


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If you marked True more than once, you are probably overspending on your Wants.


How to Bounce Back from a Bad Check And Stay Financially Healthy WORKBOOK FINANCIAL EXERCISES Financial Exercise H (from pages 19 and 20 of your Textbook)

Saving

Saving is the road to financial health. Is your savings plan a “next month we’ll do it” because this month never works out?    Respond with True or False to the following statements:  

If you marked True more than once, you are struggling to save enough money. If you aren’t saving enough then you are spending too much money on your Wants or Needs or both.


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How to Bounce Back from a Bad Check - hotchecks.net

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