Whether payment is immediate or deferred, payment by check is a great convenience. It saves time and is also a record of money paid.

Select a bank, conveniently located, and recommended by a conservative business man. Take to the bank a letter of introduction, with the sum for deposit. The bank will record your signature, and give you a bank book in which is recorded the amount deposited. A check book will be given you that contains blank checks, and provides for keeping account of deposits and checks drawn. Each check has to be filled in, and signed with your name exactly as recorded at the bank, when you make a payment. This must be recorded in the proper place when the check is made out, stating date, amount, and payee. The sums paid out are added, usually for every three checks, and this sum deducted from the deposit, and the balance carried forward. In this way you may always know your balance in the bank, provided you are accurate. Great care must be taken to fill in the blank spaces correctly so that the check cannot be easily altered by any one.

If a check is made out to you, and you wish to cash it, or deposit it, you "indorse" it by writing your name on the back across the left-hand end of the check. The name must be written exactly as it appears on the face of the check. If by chance the name is misspelled, write it in with the correct spelling below.

The checks that you make out are indorsed by the payee in the same way, and cannot be cashed until so indorsed. Therefore, if a check is lost in the mail, you do not lose the money. The bank should be notified to "stop payment" on the lost check, and you can then send another check in place of the first one.

When you wish bills or specie, you go to the bank and present to the paying teller a check made out to "Cash" and signed by yourself. It is wise not to. make out or sign such a check until you reach the bank, because if such a check is lost on the way, there is danger of its being cashed by the finder.

Once a month you should leave the book with the teller to be balanced. In a few days you may call for it, and will receive with it the checks that you have drawn, and that have been returned to the bank by the date to which the book is balanced. These checks are called vouchers. With these there is also a list of the amounts showing the total paid out on them by the bank. Check up the vouchers with the list, then check up the vouchers with your check book to see if all in your check book had been returned to the bank by the date of balancing. If there are some still out, add that sum to your check book balance, and then compare the bank book balance with your check book.

Deposits may be sent by mail, either with or without the check book. If the book is sent, it should go by registered mail. If you do not send the book, the bank will send a receipt, which you return with the book the next time the balance is made. In either case, write "For deposit" above your signature on the back.

Exercises

1. Of what value is business equipment in household management?

2. Suggest ways in which a card file might be used in the household.

3. Suggest a system for filing household letters; bills.

4. What should be one's aim in keeping household accounts ?

5. Estimate the cost of your clothing for the last year.

6. Name different methods of payment of bills. Which do you consider the best for the family with $1200 income?

7. Describe fully payment by check.

8. How should a check be indorsed ?

9. How can one desposit checks by mail?