Make sure every transaction on the statement is also in your register or spreadsheet-even pending payments. Next, you need to open your checking account statement-either the paper copy you got in the mail, the digital version that was emailed to you, or the online view you can access when you log in to your bank account. Step 2: Open Your Checking Account Statement Why? Because keeping an up-to-date balance is one of the ways you can stop your money from getting away from you. Just make sure you don’t let too many days go by before you check in on your account.
Others collect receipts and log them later. Some people write down transactions the second they happen. Do this with any payment (like writing a check, using your debit card, sending money with a mobile payment service-you get the idea) and with any income (like regular paychecks or any side hustle money). If money comes in or out of your checking account, write it down in the register or spreadsheet. This is the amount that’s in your account before you begin to make transactions.
Write down your current checking account balance in the “Cash Balance” column on the far-right side. Start by getting out your check register (if you use an actual checkbook) or making a spreadsheet (check out the register example above). Step 1: Write Down Your Transactions Often
CHECKBOOK APP HOW TO
It’s actually pretty easy! Here’s how to do it in five basic steps: And hey, at least balancing a checkbook isn’t a disgusting chore. Listen, this process isn’t glamorous, and neither is cleaning your bathroom-but they both need to be done to keep your house in order. It doesn’t take that much effort, but it can save you lots of headaches down the road. Think of balancing a checkbook as just another layer of security for you and your money. We’re human.)Īnd here’s a big one: Balancing a checkbook is a way to catch identity theft because you’ll see any odd charges as you’re balancing. Or you might catch an error you made when writing down a payment or deposit. You can also catch any mistakes early when you stay on top of your account-like if the bank made an error or a business charged you the wrong amount. And if you aren’t tracking all your spending and income right now, you’re putting yourself at risk of getting hit with dangerous overdraft fees. Most people don’t use actual checkbooks for regular transactions these days, but the name still sticks-like “filming” or “taping” a video on your iPhone (even though you’re not using actual film or tape).īalancing a checkbook is a way to keep up with your transactions.
CHECKBOOK APP PATCH
Get started with EveryDollar!Īnd when we say “all your spending,” we mean all your spending-even the bag of Sour Patch Kids you bought at the gas station when you filled up your car yesterday. Basically, it just means you’re making sure the records you’ve kept for all your spending and income match what the bank says on your physical or online statement.īudget every dollar, every month. They might still use them!Ĭheckbooks are where we get the phrase “balancing a checkbook.” It’s also called reconciling an account. Just ask your parents or grandparents all about checkbooks. These checkbooks also had small worksheets called registers where you could write down all your transactions going in and out.Ĭrazy, right? The younger folks out there might be surprised to hear this. You could use checks just like cash to buy stuff. What Does It Mean to Balance a Checkbook?īack in the day, before there were things like online banking, most people had these things called checkbooks that contained pieces of paper called checks. But keeping up with your spending and income is a must, and that’s exactly what balancing a checkbook does! So, let’s break down the what, why and how. Balancing a checking account-aka balancing a checkbook-probably isn’t on your list of fun activities.
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