How In The World Do You Balance A Checkbook?
Usually, even the thought of balancing a checkbook can send someone to pulling their hair out...
But hopefully with these step-by-step instructions, your parents won’t be the only ones who can get the job done!
Balancing your checkbook is more than just keeping up with checks you may write. It’s about making sure the amount of money you think you have in your account matches what your bank says you have. So here’s a quick lesson.
Before you get started, clear a counter for a big work space. Grab a calculator, pencil, receipts, and of course, your bank statement and check register (the gridded book that comes with your checkbook).
STEP ONE:
Make sure all your transactions are recorded in your check register – checks you’ve written, purchases using your debit card, ATM withdrawals and any deposits. If any are missing from your register, go ahead and add them in.
STEP TWO:
Compare your check register to your bank statement. Mark an X next to every transaction in your check register that appears on your account statement. If there’s an X, it’s on your statement. No X = it’s not on your statement
STEP THREE:
Look for any additional fees on your bank statement, like overdraft charges. Make sure they are accurate! Don’t forget to add the fees into your register since they were withdrawn from your account and mark an X next to them.
You may have some entries that appear in your transaction register… but not your bank statement because they occurred after the closing date on the statement. That’s okay. We’re getting to that part…
STEP FOUR:
On a separate sheet of paper, or on the back of your statement, write down the ending balance from your account statement. Then:
- Add all deposits in your register that don’t have an X (not on your statement).
- Subtract all withdrawals in your register that don’t have an X (not on your statement).
- Subtract all check amounts that are in your register that don’t have an X (not on your statement).
The number you end up with should match the ending balance written down in your checkbook! This gives you a good idea of just how much money sits in your checking account.
And wa-lah! You have now balanced your checkbook and can decipher just how much money you want to spend to celebrate your first checkbook balance. (:
Important note: If the numbers don’t match, I hate to break it to you, but you probably went wrong with your math somewhere. Double check your math on everything before you move on to other steps! If the numbers still don’t match even after double checking, contact MIDFLORIDA! They would be glad to help you out with this complicated work for a small fee!
Also, if you use online banking regularly, you can log onto MIDFLORIDA.com to check your balance, download bank statements, and track spending activity.
Don’t forget to ask for your parents help if you need it! I hope these steps help you in growing into a smarter banker and wiser spender!
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