Learning through examples (part I)

Let's understand how banking terms work with some examples. These examples have been found on the book of Dr. Reilly White et al. named 'Financial literacy for immigrants & refugees'.

BANK ACCOUNT (CHECKING ACCOUNT)

Example 1

Mike goes to an old local restaurant for dinner with his family. They have a sign saying 'CASH ONLY.' Mike doesn’t always carry cash, but he has his card (debit card) from his bank. He finds an ATM, inserts his card, and enters his PIN number. After Mike enters his PIN, he withdraws €50 to pay for dinner.

Example 2

Mike bought a new house, and he is planning to a make mortgage payment. One of the easiest ways to make the payment is to set up direct deposit with the company. He gives them his routing number and his checking account number. The bank will then automatically pay his mortgage provider every month on the same date.