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KEEPING A CHECK REGISTER
Today, checks and debit card transactions are debited from your account very quickly. If you write a check and do not have the money in your account you “bounce” a check. The bank returns the check to you unpaid, whoever you wrote the check to gets mad and the bank will charge you a hefty fee. Usually if this happens you will have written several checks and you get a fee for each one. It adds up! If you have a debit card on the account, it will be deactivated.
The bank gives you an organizer with your checks. Put it in your checkbook and use it. Sometimes called a check register, or a check ledger, this organizer gives you a place to keep track of the activity in your account. Write down in your register whenever -
- you deposit money in your checking account
- you write a check
- you use your debit card
- you deduct a fee that the bank charges
- you withdraw money from your account
The register will keep you organized because it labels columns for you, The trick is to keep up with it at the moment and not try to remember to fill it in later. It is very easy to forget to write in the times you use debit transactions. It may seem like a lot of work but you need the information to balance your account. You may be the sort of person that will check your balance on-line but get into the habit of using your register. The bank can make a mistake too. But most of the time it’s us, not them!
(Click to view Large Check Register)
1. Number: If you've written a check, put the check number here. This will help you remember if you had to tear up a check due to a mistake and skipped the number.
2. Date: Always record the date of anything you do in your checkbook: deposits, checks, debit card purchases, withdrawals from the ATM, etc. This helps track frequent trips to the ATM machine for the same amount.
3. Description of transaction: Make a note to help you track how you spend your money:
* Movie tickets (note for ATM withdrawal)
* Books, school (note for a check)
* Paycheck (note for a deposit)
4. Payment/Debit: Here you record the amount of money going out of your account.
5. Deposit/Credit: Here you record the amount of money coming into your account.
Do the math. In the far right column, either add or subtract to reach a new total. This is how you know how much money you have in your account. While you may check your account on–line, this is more up to date if you track every transaction. You can see if you are getting in trouble and get to the bank to transfer money into your checking account. And stop spending!
TRY IT FOR YOURSELF! |
