Reconciling Your Bank Statement
Each month, you receive a bank statement. A bank statement is a record of all of the transactions on your account during the past month. It lists every check, every ATM withdrawal, every debit card use, every fee charged, and every deposit made.
When you receive your statement, it only takes a few minutes to reconcile it. When you reconcile your bank statement, you simply compare the bank’s records with your records. Your bank statement is your opportunity to verify that the bank has not made a mistake with your money.
While it may not happen often, sometimes banks accidentally take money out of the wrong account, enter the wrong amount in their records, or make other mistakes. Taking the time to reconcile your account is the only way to catch those mistakes. It is also the best way to catch any mistakes you may have made in your record-keeping.
What if you forgot to write down the time you and your friend stopped at the ATM to get $50 in cash before going to the football game? How long would it take you find out? If you continue using your account believing that you have an extra $50 plus $2 for the ATM fee, you may overdraw your account—and have to pay all of those overdraft fees!
When you receive your statement, it only takes a few minutes to reconcile it. When you reconcile your bank statement, you simply compare the bank’s records with your records. Your bank statement is your opportunity to verify that the bank has not made a mistake with your money.
While it may not happen often, sometimes banks accidentally take money out of the wrong account, enter the wrong amount in their records, or make other mistakes. Taking the time to reconcile your account is the only way to catch those mistakes. It is also the best way to catch any mistakes you may have made in your record-keeping.
What if you forgot to write down the time you and your friend stopped at the ATM to get $50 in cash before going to the football game? How long would it take you find out? If you continue using your account believing that you have an extra $50 plus $2 for the ATM fee, you may overdraw your account—and have to pay all of those overdraft fees!