Consumer Economics: Banking (1977)

Got it. >> April, darling, what are you doing? >> H Oh, I'm getting my rent money from a plant. >> It's my secret hiding place. >> What do you keep in the bank? Fertilizer. >> Oh, I don't have a bank. Can you cash this for me? this if I knew what >> I don't know. I just don't know about the checking account. >> Oh, honestly, April, I thought everybody knew that. >> Hey, you. >> Yeah, you. What are the four main reasons for having a checking account? >> Oh, the uh four main reasons for having a checking account. Um, wait, don't tell me. Uh, protection. It's a perfectly safe place to keep your money. >> Yes, protection. Go on. Uh, well, let's see. Protection. Um, convenience. If you have a checking account, you won't have to carry around a lot of cash. >> Yes, convenience. Keep going. >> Uh, yeah, keep going. Keep going. Um, how about it's not safe to send cash through the mail, but you can send checks through the mail. >> Through the mail. Very good. One more. >> Oh, gee, Willicker. >> YOUR TIME IS ALMOST UP. >> AH, oh my gosh. >> Uh, I'll give you a hint, >> please. Anything. At the end of the month, when the bank sends you all your cancel checks, WHAT ARE THEY GOOD FOR? >> OH, the receipts. Uh, you can get your checks back to prove it. You paid for things. IT'S YOUR PROOF OF PURCHASE. >> HE GOT IT. >> I GOT IT. >> I got it. >> Yay. >> Oh, well. Uh, do I win anything? >> No, but you get to come back this weekend. Thank you. >> Oh, COME BACK WHERE? Let's see. Protection, convenience, you can send your checks through the mails and um cancel checks or proofs of purchase. Right. You are also having a checking account is good for your credit record. >> Oh, once you open an account, that bank will cash your soggy little paychecks for you. >> Well, that's good enough for me. I'm sold. Good. And you like banks. You don't have to keep watering them. They don't eat a lot of mice. They don't get root rot. >> No cows. >> Hello, >> Miss Martinez. Can I help you? >> I'd like to open a new checking account, please. with a plant. >> Don't ask. >> I'll be depositing these >> nice checks. Okay. Uh we'll need you to fill this card out with your name, address, and your signature, and then endorse those checks. >> Endorse. Well, they seem to be very fine checks, nicely printed, good paper, and Dorothy means to sign them on the back. >> Yes. You see, what you're doing is signing the checks over to the bank. >> Oh, April and Parish. April and Parish. Mhm. >> Now, write for deposit only under your name. Fine. Now, take a look at this. Here at Security City, we have two basic checking plans to choose from. You can either pay a 20 cent service charge for each check you write, or you can just pay a $3 monthly service charge no matter how many checks you write. >> Wait, wait, don't tell me. 20 cents goes into $3 15 times. So, if I'm going to be writing less than 15 checks a month, I'm better off paying by the check. But if I'm going to be writing more than 15 checks a month, I'm better off paying the $3 a month. She's quite gifted, you know. >> Well, I think I'll take the 20 cents per check. >> Fine. That's all there is to it. Now, here's some plain checks to get you started, and we'll be sending you your personalized checks in the mail. >> Great. How soon? >> We'll figure 10 days to two weeks. >> Thank you. >> You're welcome. Bye. Bye. Bye. >> [music] >> For my very first check, I want to pay you the rent. >> There we go. There we go. All right, April, dear, may I borrow your pen, please? >> Sure. >> Thank you very much.6025. Here we go. $16025 and I do so appreciate it. >> My word, you can't do that. >> I just did. >> But that's cheating. >> You bet your balance book it is. Look, Turkey, I just did that to show you there's a right way and a wrong way to writing a check. >> Not a turkey. >> That remains to be seen. Now, let me show you the right way. Get a new check and something to write with. Now, now a pen. Never, never, never use a pencil. Now, spell out the date right there. Start my name as far to the left as possible. Start the numbers as close to the dollar sign as possible and add N O over 100 to show that it's $60 and no cents. There you go. Spell out 60. Again, start as far to the left as you can. Add the N O over 100 to show no sense and then draw a line all the way to the right so no one can add anything to it. Now sign it clearly and enter this in your balance book right away. You got to keep track of these things. And don't leave your checks lying around. Guard them like money. And for goodness sake, don't ever sign a blank check. No. All right. What are you going to do about this? You're not a turkey, April. You're the whole barnyard. You know that. What you do with this is voided. Void. V. O. Right. And then you know what you do? You throw them away. And if you ever can't get to the check to actually destroy it yourself, you report it to the bank and tell them to stop payment on it. It's as long as you call them before the check gets there. They won't cash it. It'll cost you a little, but it's worth it. I'm not a turkey. No, April, you're not a turkey. I'm sorry. Well, okay, but if I were you, I'd keep a low profile just before Thanksgiving. You know what I mean? [music] Attention. [music] [screaming] This is a surprise checkbook inspection. Do not RESIST AND NO ONE WILL GET HURT. >> NAY, >> get out your checkbook. This is for your own protection. >> Why are you doing this? We must see that you know how to balance your checkbook properly. This is only a test here. This is good. You have entered your checks and your deposits and you have kept a running total. >> Why are you doing this to me? >> I do this for all my tenants. It's just one of the little extras you get here at Muslock Manor. >> I think I'd rather have a garbage shoot. >> Do you have your bank statement? >> My bank statement? You mean the thing they send you every month with your canceled checks? >> That is correct. >> Yes, I got that yesterday. >> Present it for inspection. >> Oh no, you're You're supposed to save those things, you little squirt. The little checks, remember? Hey, I found my nose plugs. >> Great. And that bank statement is how you know what your balance really is. >> Here it is. All right. What does it say? >> Well, they've listed my checks and my deposit and my new balance. 89.40. >> Is that what you have in your checkbook? >> 89.40. Let's see. 8940. That's very close. >> Close. Did you say close? >> Close is no good. Close is for losers. >> How close? >> 60 cents. >> What are you going to do about it? >> Golly. Well, maybe I should compare what I wrote in my checkbook with what the bank put on my statement. >> All right, do it. >> Well, Lando Gosh, they've listed the same deposits and the same checks that I have, and I come up with a balance of $90. >> Don't they list something else? Oh, the service charge. They've deducted a service charge for three checks. 20 cents a check. That makes60. So, I'll put it in my checkbook. And now I'll have a balance of 89 40 to the penny. Now keep your checkbook balanced and you won't make the mistake of writing checks for more money than you have. That's called overdrawing your account and the banks hate it. >> I won't. All right. Now you can get back into bed. As for now, you pass. >> Gee, thanks, Netty. >> It's all part of the job, kid. Good night. >> Good night. All right, Sheldon, get up. This is a surprise checkbook infection. >> She really does. >> Get out your checkbook. Do not read it. No one will get hurt. >> Savings account, huh? Well, I think you should at least consider it. Especially since your plant died. >> Gee, I don't know if I want to put any more of my money in the bank. Well, it's up to you, but there are a lot of nifty reasons for it. Lots. I couldn't name one. >> What's that? Name one? We'll do better than that. Not two, not three, but four dynamite reasons to sash your cash in the savings account. Yeah. First, it's a surefire way to have the green stuff on hand for when you really need it, like an emergency. I'm not planning on having any emergencies. >> Shh, you're interrupting. >> Oh, sorry. >> That's all right. And another prior reason is protection. Can you dig it? It's an incredibly safe place to keep your money. >> Better than shoving it under a fern. >> And cleaner, too. Also, a savings account is a proven way to start establishing a credit record equity. Hear me talking to you. And finally, you keep your bread in a savings account. You'll earn interest. So, put in the back. Hack start to save. Dave, do it to us. You know what I like to do? Here's another hot product. I just know you'll all enjoy making brains fall out. Well, what do you think? >> Got a good beat. I like the words. Give it a 60. >> Oh, I mean about savings account. >> Oh, well, savings account. >> I guess it's a good idea. >> Well, you're darn right. But choosing a place to put your savings will require some thought. >> Why is that? Oh, you got to think of something more besides convenience. Different banks offer different free services with their savings accounts, like safety deposit boxes, free travelers checks, things like that. Also, some banks offer higher interest than others. You got to take all that into consideration. >> Tell me more about how this interest stuff works. Suppose you put $1,000 in the bank. Suppose you got 5% interest. How much extra money would you have at the end of the year? >> $50. >> How did you do that? >> Do what, dear? Let's go. The surf's lousy. Well, you've convinced me. I'm going right to my bank and open up a savings account. >> Not so fast, Buster. You might want to Whoops. You might want to think about putting your savings in a different kind of bank. >> You mean like a secret Swiss one? >> No, like a savings alone association. The Savings and Loan Association. Huh? Yeah. >> So, uh, tell me what's a savings and loan association? >> A savings and loan association? That's a bank whose main purpose is loans and savings accounts. That's the Savings and Loan Association. You know what I mean? >> Yeah. Well, since I need both a checking account and a savings account, why shouldn't I find them both at my commercial bank? You know what I mean? >> Yeah, you can do that. But the savings and loan offer higher interest rates and more free services. You know what I mean? Yeah, but I don't know. It just seems so convenient to be able to have both of those accounts at the same bank. You know what I mean? >> Yeah, I know what you mean. >> But before you really decide, maybe you better ought to look around, huh? So, let's go by your bank. And if there's a good savings and loan association, maybe you'll open an account. Okie dokie. Come on, Tiger. Let's go. >> Okay, Miss Parish, that's all there is to it. Now, there are all kind different savings accounts. You see, gee, the more money I put in and the longer amount of time I'd agree to leave it in, the higher the interest, >> right? You're probably better off with the one you picked. It's the simplest. >> But that's the lowest rate of interest. >> Yes, but that's the only one where you can take your money out anytime you need it. It's just like a very safe house plant that pays interest. >> Are you making fun of me? Oh, >> perish the thought. Now, this passbook is where they'll enter your deposits and withdrawals. And four times a year, they'll post your interest here where it says interest. Very interesting. You making fun of me? Now, if you want to make a deposit, just bring in your passbook, fill out one of these deposit slips, take it up to the tiller. But what if I want to take some of my money out? >> Funny you should ask. That's called a withdrawal. And I'm just about to make one myself. I've got my passbook. I fill out one of these withdrawal slips. Fill in the amount. Sign my name. Let's take it up to the teller. >> Why are you taking out so much money? >> I've been saving up for something special for a long time. I never could have done it without a savings account. >> Golly gee, sounds exciting. What is it? >> My new vehicle. >> You mean you're getting rid of the van? >> Uh-huh. >> Good. You know, I've always thought it was kind of silly for a woman of your stature to be driving around in a big old van. I'd like to see you in something smaller and a little more dignified. >> That's just what I'm getting.