Mathematics for Business and Personal Finance

Chapter 4: Checking Accounts

Business Math in Action

Double-Check That Check

One problem with money throughout history has been that people like to steal it. Ancient civilizations stored their gold and silver in temples, which were the biggest, most guarded buildings. Eventually the Greeks built banks where citizens could make deposits, withdraw cash, and take out loans. But not until the 1500s in Holland did people began to use checks instead of cold, hard cash. Prior to that time, people were uncomfortable with the idea that little pieces of paper could represent their money.

Then, as now, counterfeiters printed fake checks and forged the signatures on stolen ones. In spite of these risks, people continued to use checks because it was easier than hauling around bags of money. Today we have high-tech ways to identify checks and catch counterfeiters. Yet check fraud—especially check "washing"—remains a problem. With a low-tech bottle of household cleaner, a thief can scrub off the ink and alter checks so that they appear to be written to the thief, often raising the amount payable to thousands of dollars.

You can protect yourself against check fraud by taking the following precautions suggested by the National Check Fraud Center:

• Do not leave outgoing mail in an unlocked box. Home mailboxes are where many thieves steal checks. Drop your mail in a mailbox, hand it to a mail carrier, or take it directly to the post office.

• If you must leave outgoing mail in your box, do it just before the mail carrier comes.

• Do not leave mail in your box on Sundays or holidays.

• Install a lock on your mailbox, or buy a box that comes with a lock.

• Do not have new checks delivered to your home through the mail. Ask your bank if you can pick them up in person, or ask to have checks sent by a parcel delivery service.

• Do not throw cancelled checks or financial records in the trash. Buy a paper shredder and shred them. If you need to save them, put them in a secure place.

• Look over your bank statements as soon as you receive them, or check your bank activity frequently if you use the Internet instead of receiving a paper statement. If you do not report check fraud within 30 days of having the record of the activity made available to you, the bank does not have to reimburse your loss.

• Use gel pens to write checks—their ink is the hardest to wash because it contains tiny particles of color that are trapped into the paper. Fountain pens with dark ink are more wash-proof than ballpoint pens.

English Language Arts/Writing

Paying Bills

Write a list of some of the monthly expenses you would likely pay by check.