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In this lesson, the teacher explains the direct deposit process, where earnings from work are transferred straight into a bank account, eliminating physical paychecks. To set this up, one must complete a direct deposit authorization form. Required information includes: name, address (e.g., 614 Douglas Park), city (Louisville), state (Kentucky), and zip code. The lesson emphasizes the importance of accurately providing these details to ensure successful direct deposit of paychecks.