Chapter 8 Financial Institutions and Services 195
2. List all deposits you made that are not on the statement.
3. Add the amounts from steps 1 and 2. Write the total.
4. List by number and amount any checks and ATM withdrawals not
included on the statement. Add these amounts together and enter the
total at Checks outstanding.
5. Subtract the amount in step 4 from the amount in step 3 and enter
the Balance.
The balance on your worksheet should match the current balance in
your checkbook register. If they do not agree, go through the above steps
very carefully to check your math. If the fi gures still do not agree or come
close, you may want to contact your bank for help.
Special-Use Checks
In addition to personal checks, other types of checks can be used to
transfer funds from payer to payee. Each serves a special purpose. They
are available from most fi nancial institutions, usually for a fee.
Cashier’s Check
You buy a cashier’s check from the bank and use it to make a payment
to another person. A cashier’s check is drawn by a bank on its own funds
and signed by an authorized offi cer of the bank. The bank guarantees
payment.
Certifi ed Check
A certifi ed check is a personal check with a bank’s guarantee the
check will be paid. When a bank certifi es a check, the amount of the check
is immediately subtracted from your account. A certifi ed check is used to
make a payment to a payee who does not accept personal checks.
Money Order
A money order is an order for a specifi c amount of money payable to a
specifi c payee. People who do not have checking accounts may use money
orders to send payments safely by mail. Money orders are sold in fi nancial
institutions, U.S. post offi ces, and other convenient locations.
Traveler’s Checks
People who travel and do not want to carry large amounts of cash
often use traveler’s checks. They can be cashed at many places around
the world. If the checks are lost or stolen, they can be replaced at the near-
est bank or by the agency selling them. Keep a record of check numbers
separate from the checks. You need identifying numbers to replace lost or
stolen checks. Sign the checks only at the time you cash them.