The lesson is about understanding and interpreting bank statements, which are documents that show financial transactions made to an account over a specified period of time.
Use this video lesson on the topic of bank statements, including the various components of a bank statement, such as the bank information, statement period, account number, type of account, summary section, and transaction details, as well as how to check for fees and calculate the ending balance to ensure accuracy. Learn basic economic and related concepts of
- Account balance
- Deposits and withdrawals
7-12th grades. Middle School. High School. Adult Education.
45-60 Minutes. It may be necessary to adjust the lesson plan and allocate more or less time to certain topics, depending on the needs and interests of the students.
- Understand what a bank statement is and why it is important
- Know how to receive a bank statement
- Identify the different components of a bank statement
- Learn how to review and interpret the information on a bank statement
- Know how to check for fees on a bank statement
- Learn how to calculate the ending balance on a bank statement
- Understand how to manage your money and keep your account in good standing by understanding and interpreting your bank statement
- Video and Worksheet
- Bank statements (real or sample)
Hand out the worksheet below (see the GET LESSON button near the bottom of the page).
Show students the video and have and have them complete the worksheet. Review the questions on the worksheet. Complete the lesson plan below.
After watching the video, ask students to summarize the main points made in the video.
- Show students the video and have them complete the worksheet to introduce the topic of bank statements and their importance in keeping track of financial activity and ensuring that an account is in good order
- Explain that a bank statement is a record of all transactions made to an account during a specified time period, usually covering monthly activity, and containing information like account balances, withdrawals, and contact information
Receiving a Bank Statement
- Discuss the different ways to receive a bank statement, such as online or by mail
- Emphasize the importance of keeping bank statements for up to seven years for tax preparation.
Components of a Bank Statement
- Review the various components of a bank statement, including the bank information, statement period, account number, type of account, summary section, and transaction details
- Point out that the summary section includes the beginning and closing balances of the account, and the transaction details list all the transactions made during the statement period.
Reviewing and Interpreting Information
- Discuss the importance of carefully reviewing the transaction details on a bank statement to ensure that all transactions are accurate and authorized
- Emphasize the importance of tracking spending habits and identifying fraudulent activity by regularly reviewing bank statements
Checking for Fees
- Explain that bank statements may include fees such as overdraft fees and monthly maintenance fees, and that it is important to check for these fees in the transaction section and summary section of the statement
- Discuss the importance of paying any fees on time to avoid additional fees
Calculating Ending Balance
- Demonstrate how to calculate the ending balance on a bank statement by adding all deposits and subtracting withdrawals and fees
- Emphasize the importance of checking the ending balance to ensure that it is accurate
Managing Money and Keeping Account in Good Standing
- Discuss the importance of understanding and interpreting bank statements in order to properly manage money and keep an account in good standing
- Encourage students to regularly review their bank statements and pay any fees on time to avoid additional fees
- Review the main points of the lesson and emphasize the importance of understanding and interpreting bank statements in order to properly manage money and keep an account in good standing
- Encourage students to ask any questions or clarify any points before ending the lesson.
What is a bank statement?
A bank statement is a valuable tool to keep track of your financial activity, and ensure that your account is in good order. It is a record that shows all transactions made to your account during a specified time period, and it usually covers monthly activity. It contains information like account balances and withdrawals as well as contact information.
Regularly reviewing your bank statements is essential to keep track of your spending habits, spot fraudulent activity, and to create a budget. Bank statements can be received online or by mail. It is recommended that you keep them for at most seven years for tax preparation.
Let’s begin by identifying the most important information on your bank statement. The following information should be on your bank statement:
- Bank Information. This includes the bank’s name, address, and contact information.
- Statement period: This describes the time span that the statement covers.
- Account number: This number is unique to your bank account.
- Type of account: This refers to the type account you have such as a savings or checking account.
- Summary section. This is a summary of the transactions done in your account. It includes the Beginning balance, which is the amount in your account at the beginning of the statement period, and Closing balance, the amount in your account at end of the statement period.
Let’s now look at your transactions. You will find a list listing all transactions that were made during the statement period. This list should include the date, description and amount. You should carefully review this list to ensure that the transactions have been authorized and accurate.
Be sure to check for fees. Check for fees such as overdraft fees and monthly maintenance fees. You may find this in the transaction section and also in the summary section.
Let’s now calculate your ending balance to make sure it is correct. To calculate your balance, add all deposits to the account and subtract withdrawals and fees. This will allow you to see how much money is in your account, and make sure it is correct.
You can avoid any additional fees by understanding your bank statement and paying all fees on time. To avoid any additional fees, pay any fees that are on your bank statement. You can pay fees online, or by mail.
This will help you keep your account in good standing. You should keep track of all activity in your bank account and ensure that you manage your money properly.
Be sure to be able to read and understand your bank statement. It is important to regularly review to ensure accuracy, track spending habits, and identify fraudulent activity.