Balance a checkbook?

[mysteriouspoet]

I have never done this before...I don't think I have any idea how to. Does anyone know?

[catswym]

your checkbook comes with the part that is called a "transaction register". it is lines, usually alternating dark and light.

you write down everything you "spend" e.g. checks, withdrawals, debits if you use that, transfers, etc.

you also write down everything you "earn" e.g. deposits, direct deposits. then you just add it up. that should match your bank statement.

you really just make sure you account for all expenditures and credits. otherwise your figuring and your bank statement won't work out. it's always good to keep your receipts, for this reason.

[Joe]

I have never done this before...I don't think I have any idea how to. Does anyone know?

http://financialplan.about.com/cs/personalfinance/a/CheckbookBalanc.htm

(Multi-part article. Many similar articles available by "Google-ing.")

[soilman]

Yes, I know how.

And why they don't teach this in junior high school, I'll never understand. Same thing with how to properly write checks. When, at age 17 or 18 or so, wanted to function as a full-fledged adult, I had the problem of not knowing how to write a check, and I resented the fact that it didn't occur to any adult to teach me how, yet they thought I needed to know things like art history (they called it "art appreciation").

You need to keep a running checkbook balance, in a document called a "check register" and, once a month, when the bank sends you a "checking account statement," you need to "reconcile" your register with the bank's statement.

When you get your checks back from the printer they will just about always include a check register form that explains, right on it, how to fill it out. I recommend that if you are new to this, that you definitly keep a running balance in it -- calculate the balance every single time you write a check; don't wait until you have written a few checks, to calculate your balance. But you must enter the information for each check (when, to who, and how much) immediately, every single time you write a check. When you get your statement from the bank, once a month, you will just about always get instructions, usually written right on the statemment, that includes instructions how to reconcile your register, with the statement.

If you can't wait until you get your checks from the printer, there must be a zillion web sites that explain how to do it. But it is easier to learn as you are writing checks, rather than try to learn it abstractly.

The basic idea is that, when you make a deposit, you write down information about what day you made a deposit, and how much you deposited. When you write a check, you write down information about what day you wrote it, who you wrote it to, and how much it was for. The document you write this in, is called a check register.

The bank will be doing the same thing. Plus they may be subtracting fees from you balance, and they may be calculating interest and adding it to your balance. The document they write this in, and send to you, is called a statement, or "montly statement."

Reconciliation is a formal way of verifying that what the bank says happened, is the same thing as what you say happened. While you are doing reconciliation, you will also note, in your register, any fees that you find in their statement, that you did not already note, at the time they occured (such as per-check fees, atm withdrawal fees, monthly fees, and interest on the amount in your checking accout)

[goettling]

I learned to do this my freshman year. But I have to say with this modern puter stuff, that I am a debit freak. I hardley write checks for anything that I can get away with.

I do not always write down what I debit out of my checking account, but almost daily look on line about my checing account. I double check this. I subtract everything.

I think it depends on what bank you bank with. If I debit something, I can call the bank minutes later and it is out.

I never have been good with balancing that statment that they mail. I think I trust the bank too much.

Usually, every bank has a website for free that you can check your balance.

Really the whole thing about it, is to be organized, write everything down in the register, subtract and add your deposits, and stay on it. It is so easy to get a 25 or 30 fee charged to your account for being just a negagtive of 1.00. It has happened to me. That dollar pop has cost me 25 in bank charges.

[mysteriouspoet]

It took me a couple of times before I knew how to properly write a check. Blegh.

[Pisces Coda]

Yes, I know how.

And why they don't teach this in junior high school, I'll never understand.


We actually were taught this at my elementary school. I remember in middle school we had a whole section on keeping track of stocks, where we picked stocks and had to keep track of them for weeks. Now THAT was odd. ( and irrelevant to this thread. )

[Tiggzie]

I did the stock thing too but not the check thing, PC.

Honestly, every school should have a more advanced Home Ec class starting in junior high. How to write checks, balance checkbooks, open accounts, understanding credit scores, how to make rice, how to do laundry, how to set a table...that's what kids should be learning. We no longer have the luxury of having one parent at home where kids can pick this stuff up from.

But I digress...
Catswym is right. It's all about adding up what you spent and having it match up to what you have in your account. It helps you keep track of how much money you have in your account at any given time.

[Poppy]

Keeping a checkbook balanced is not difficult, once you get used to it. Just, please, remember to reconcile it once a month! It can seem like a pain, but it could save you a lot of agony in the long run. If you make a mistake you will probably catch it on your end-of-month reconcilation, but if you don't do the rec; you may carry it for several months - you could even be charged fees that you don't know about!

[soilman]

Pisces Cola
We actually were taught this at my elementary school. I remember in middle school we had a whole section on keeping track of stocks, where we picked stocks and had to keep track of them for weeks. Now THAT was odd.

That is terrific. I've heard that a few schools do have programs like this.

goetling
But I have to say with this modern puter stuff...I hardley write [paper] checks for anything that I can get away with...

I think it depends on what bank you bank with. If I debit something, I can call the bank minutes later and it is out...

Usually, every bank has a website for free that you can check your balance.


Indeed, most banks have a free or lowcost service where you can do everything on line. It makes life much easier. You still have to keep your own check register, I believe. I constructed a simple Excel spreadsheet to do it. I like this better than pen and paper. And I don't have to do the calculations. I just key in the date, the check number, the "to whom" and the amount.. then I have a little macro that does calculates the balance and puts it in the right place. Plus I have a second page, to the excel file, that makes reconciliation easier too. This is what computers are really for! Not for playing games!