Is Your Checking Account Balanced?
It seems that balancing a checkbook is a lost art. This actually makes sense at first glance, since the use of checks themselves has declined dramatically.
But while many people just take a look at their bank balance online to decide how much money they have available to spend, there are dangers in doing this.
Balancing your checking account is an excellent idea for several reasons:
- If you don’t balance it, you’re at the mercy of whatever the bank says is your balance
- It’s easier to overdraft your account and rack up fees if you aren’t aware of what has yet to clear — transactions that the bank may not be aware of
- You may overlook unauthorized charges
- You’re less likely to pay attention to your money and what you’re spending it on
Next Sunday’s post will explain how to balance your checking account.
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This post is part of a series. See what everyone should know about personal finance for links to additional posts.
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My ‘checkbook’ is always ‘balanced’ because I budget beforehand and don’t rely on what the online statement says. I have an Excel spreadsheet that tells me what is available to spend and I have a network between credit cards and ING that I use to mange my finances. Can’t wait to read the next installment of this post.
I’m with Lulu on this one!