When you are really keen to manage your finances on the whole, it is imperative to monitor your checking account. It essentially requires good record keeping. If you write down all details, you would know where is all your money going and how much is left for spending.
This is a vital piece of information for reviewing your household expenses and budget. Here’s how you may proceed:
1. Find out from the bank or credit union the types of different checking accounts available. Inquire the services available with each kind, like monthly fees, overdraft charges, cost of checks, overdraft protection plus ATM fees. Also find out if online facility is available. Weigh all the options and look to the possibility of free checking.
2. Make use of the check register. Make sure to write down each check, deposit, ATM withdrawal and debit card transaction.
3. Reconcile your check register with the monthly statement provided by the bank. Add up your total expenses for the month by adding all checks, debit card transactions, and money withdrawn using ATM card. Next, add up the amount deposited by way of cash or checks. Subtract expenses from the money deposited to get your balance amount with the bank.
4. Check that all the transactions appearing in your check register tally with those in the bank statement. If every data is correct, the balance that you calculated above should be the same as reflected in bank statement.