HOW TO SUCCESSFULLY MANAGE YOUR CHECKING ACCOUNT

To manage your checking account successfully, it is necessary to understand two basic components:

• Check writing
• Account balancing

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Prepare your checkbook

• Insert the check pad with the lowest check number into the protective checkbook cover.
• Insert the blank check register into the other pocket of the protective checkbook cover.
• After writing a check, register the date, amount and pay to the order of information into your checkbook register then remove check from checkbook.

If registering your check information immediately is a challenge due to your busy schedule, you may want to consider ordering “duplicate checks” from your financial institution. The duplicate copy is a carbonless form located under each check. Once you have written on the check original, the information transfers to the duplicate copy leaving you with a record of the transaction. This will assist you in balancing your account later.

Check writing basics
To learn how to properly write a check, refer to a blank check from your checkbook and follow these few easy steps.

• Complete the date line
• Write in the name of the person or the name of the company that you are paying in the “pay to the order” section.
• Enter the dollar amount in numbers in the area next to the pay to the order section. (e.g., $52.00 or $976.52)
• Write the amount in words, starting as close to the left of the check as possible.
• Sign your check
• Complete the memo line (optional) with important information such as an account number when paying a bill.

Helpful hints

• Write in ink so nothing you wrote can be changed
• Write clearly so others can’t misread
• Sign check only after all information is completed
• If you make a mistake write void on the check and write void next to the check number in your check register then tear up the check and write a new one

Importance of a checkbook register
Your checkbook register is a permanent record of your account transactions. It is important to keep it up to date and record all transactions. Be sure to record automatic and recurring transactions on the date that they will occur. The following list includes items that are considered a debit (a deduction from your account).

• Checks that clear
• Check order charges (unless your bank provides checks free of charge)
• ATM withdrawals
• Automatic loan payments
• EFT payments
• Debit card transactions
• Withdrawals made at the bank counter

The following list includes items that are considered a credit (an increase in your account balance).

• EFT deposits
• Cash deposits
• Check deposits
• ATM deposits
• Payroll direct deposits
• Interest earnings deposit
• Social Security or Pension deposits

Your bank statement
Your bank account statement has two main purposes.

• It gives you an official record of the transactions your financial institution has processed on your account.
• It also helps you to balance your checking account and detect errors if there are any.

The importance of balancing your account
When you account is balanced, you will be less likely to have non-sufficient fund (NSF) occurrences or “bounced” checks because you have a clear indication of your account balance at all times. Returned-bounced-NSF items can be expensive, inconvenient and embarrassing. The fee for NSF items can be anywhere from $20.00 to $40.00 or more per item depending on you financial institutions policy. You will most likely be charged a fee from the person or business that the check is returned to as well.

Balancing your account
Follow these steps for balancing your account. (you should also be able to find a balancing worksheet on the back of your bank statement.

• Check off all credits and debits from you statement as compared to your checkbook register.
• Add any deposits made since your bank statement was generated to your account statement balance.
• Subtract any checks that have not cleared your account (according to your statement) from the balance of your bank statement.
• The resulting figure is your ending balance. This should be the same balance you have recorded in your checkbook register.

Is your checkbook out of balance?
Once you have tried all of these suggestions and you are still out of balance. Contact your financial institution for assistance. They will be happy to help you resolve the issue.

• Did you enter all ATM and other electronic transactions?
• Did you write checks around the same time your statement was printed that have not cleared yet?
• Did you record all of your deposits?
• Did you deduct service charges (if applicable)?
• Do you have any check numbers that are not accounted for?
• Do all of the check or deposit amounts written in your register match the amounts on the bank statement?
• Did you double check your addition and subtraction?
• Did you balance your account last month and carry over an accurate balance?