Very few of us enjoy balancing our checkbook, but NOT balancing our checkbook gets us in trouble. First, review my article on Healthy Banking. Make sure that you are using your checkbook register faithfully for deposits, checks, and ATM or automatic account debits.
Are you ready to balance your checkbook?
You will need your checkbook register and the checking account bank statement. Do you have both? Okay, it's time to begin.
Step One: Bank's Balance
Are you ready to balance your checkbook?
You will need your checkbook register and the checking account bank statement. Do you have both? Okay, it's time to begin.
Step One: Bank's Balance
Write down the ending balance shown on your bank statement.
Step Two: Add Deposits Not Shown
Go over bank statement. Make sure all your deposits are on the bank statement.
Make a list of any deposits or additions to your checking account that are NOT shown on your bank statement. Add them all together. Add the total to your bank's balance.
Step Three: New Total
Now you have a new total. Hold on, there's more.
Step Four: List All Withdrawals
Go over bank statement. Make sure all your withdrawals are on the statement.
List all checks, ATM withdrawals, debit card purchases, and other withdrawals of any kind NOT on your bank statement. We belong to the YMCA and that is deducted each month, but it usually shows up on our bank statement.
Step Two: Add Deposits Not Shown
Go over bank statement. Make sure all your deposits are on the bank statement.
Make a list of any deposits or additions to your checking account that are NOT shown on your bank statement. Add them all together. Add the total to your bank's balance.
Step Three: New Total
Now you have a new total. Hold on, there's more.
Step Four: List All Withdrawals
Go over bank statement. Make sure all your withdrawals are on the statement.
List all checks, ATM withdrawals, debit card purchases, and other withdrawals of any kind NOT on your bank statement. We belong to the YMCA and that is deducted each month, but it usually shows up on our bank statement.
Total all the withdrawals up. Are you ready for the final steps?
Step Five: Subtract Withdrawals for a New Total
Subtract your total withdrawals from the new total in step three. You have a New Total.
Step Six: Does Your Total Match Bank's Total?
Your new total should match the bank's original total. If it doesn't you will need to recalculate and figure out why. Sometimes you forgot something that you purchased. Or your husband made a deposit. Or your wife used her ATM card. Occasionally the bank makes a mistake. Investigate and recalculate. Go through these steps as many times as you need to until the balances match.
Step Five: Subtract Withdrawals for a New Total
Subtract your total withdrawals from the new total in step three. You have a New Total.
Step Six: Does Your Total Match Bank's Total?
Your new total should match the bank's original total. If it doesn't you will need to recalculate and figure out why. Sometimes you forgot something that you purchased. Or your husband made a deposit. Or your wife used her ATM card. Occasionally the bank makes a mistake. Investigate and recalculate. Go through these steps as many times as you need to until the balances match.
If you are want to learn more about finances or teach economics and financial management to your high school teen, let me recommend Economics, Finances, & Business, a one-credit high school course using living books and hands-on projects. You can purchase Economics, Finances, & Business at Amazon. The E-book is available at PayHIp or Currclick.
Happy Balancing!
Merey (Meredith Ludwig Curtis)
Happy Balancing!
Merey (Meredith Ludwig Curtis)
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