6.14.A 6.14.B 6.14.C 6.14.D* 6.14.E 6.14.F 6.14.G 6.14.H

Texas Essential Knowledge and Skills (TEKS) Personal Financial Literacy
Grade:	6th Grade
Standard:	6.14.A
Description:	compare the features and costs of a checking account and a debit card offered by different local financial institutions;
Standard:	6.14.B
Description:	distinguish between debit cards and credit cards;
Standard:	6.14.C
Description:	balance a check register that includes deposits, withdrawals, and transfers;
Standard:	6.14.D*
Description:	explain why it is important to establish a positive credit history;
Standard:	6.14.E
Description:	describe the information in a credit report and how long it is retained;
Standard:	6.14.F
Description:	describe the value of credit reports to borrowers and to lenders;
Standard:	6.14.G
Description:	explain various methods to pay for college, including through savings, grants, scholarships, student loans, and work-study; and
Standard:	6.14.H
Description:	compare the annual salary of several occupations requiring various levels of post-secondary education or vocational training and calculate the effects of the different annual salaries on lifetime income.

Checking Accounts

Some banks charge a fee for certain actions or if the account holder does not meet certain requirements.

Examples of fees that are charged by a bank are:

Account fee (may also be called a service fee or maintenance fee) - a fee that is charged to keep the account open. This fee is typically charged monthly. Sometimes this fee is waived for maintaining a minimum balance or setting up direct deposit.
ATM fee - a fee that is charged when a transaction is made at an ATM. This fee is typically charged every time an ATM is used, but it is often waived for that bank's account holders.
Overdraft fee - a fee charged for making a withdrawal greater than the account balance.

Some benefits of a checking account are:

The money in the account is insured by the federal government.
A canceled check can be used as proof of payment, so there is a record of the transaction.

Methods of Payment

A credit card is a small plastic card issued by a financial institution which can be used to make purchases. The amount charged on the credit card is borrowed by the cardholder from the financial institution. The cardholder is responsible for paying the money back. If the money is not paid back immediately, the cardholder is typically charged interest.

A debit card is a small plastic card issued by a bank to an account holder which can be used for electronic transactions, such as purchases and ATM transactions.
When a payment is made with a debit card, the money comes from the cardholder's bank account.

Texas Essential Knowledge and Skills (TEKS)

Personal Financial Literacy

6.14.A

compare the features and costs of a checking account and a debit card offered by different local financial institutions;

6.14.B

distinguish between debit cards and credit cards;

6.14.C

balance a check register that includes deposits, withdrawals, and transfers;

6.14.D*

explain why it is important to establish a positive credit history;

6.14.E

describe the information in a credit report and how long it is retained;

6.14.F

describe the value of credit reports to borrowers and to lenders;

6.14.G

explain various methods to pay for college, including through savings, grants, scholarships, student loans, and work-study; and

6.14.H

compare the annual salary of several occupations requiring various levels of post-secondary education or vocational training and calculate the effects of the different annual salaries on lifetime income.