Record Keeping
Step 7:
Write down the check number, date, payee and amount in the check register or ledger at the front of your checkbook. Also including the ATM transaction number is applicable.
Step 8:
Subtract the amount of the check so you will know how much you have left in your account.
See Below
Write down the check number, date, payee and amount in the check register or ledger at the front of your checkbook. Also including the ATM transaction number is applicable.
Step 8:
Subtract the amount of the check so you will know how much you have left in your account.
See Below
Managing your account Having a bank account can be expensive if not used properly.
1. The key to managing your account is writing down every withdrawal or deposit into your account and every fee you pay for those services.
2. Subtract all withdrawals and fees from your balance and add all deposits so you know how much money remains in your account. Withdrawals include writing checks, making purchases with a debit card, and using ATMs to get cash.
3. Also, if there is a fee, write it down and subtract it from your balance. Otherwise, you may find that you have “overdrawn” your account.
OVERDRAWN
Being overdrawn means you have used more money than you put in your account. Any time you are overdrawn, banks charge fees called “overdraft” or “insufficient funds” fees and automatically subtract them from your account.
Obviously, that leaves you with even less money. In addition to bank fees, merchants or people to whom you gave the check may also charge you a fee for giving them a bad check—and that will cost you even more money!
One “hot check” (a slang term for checks written on accounts with insufficient funds) may cost you as much as $100 by the time you pay all of those extra fees. People who habitually and knowingly write “hot checks” or “bounce” checks (another slang term for being overdrawn) can be put in jail or fined for their careless or criminal behavior.
The same is true for overdrafts using a debit card. The bank may deny the transaction, leaving you in an embarrassing position in front of your friends—or it may allow the transaction to go through, leaving you with more fees to pay.
OVERDRAFT PROTECTION
Some banks will offer a special service called “overdraft protection” to help keep you out of trouble. But, you will also be charged a fee for using this service—so it will still be an unnecessary cost to you. Why give the bank extra money for fees when you could use that money for things you want or need?
Maintaining an accurate record of your transactions is the only way to protect yourself from costly mistakes with your bank account.
1. The key to managing your account is writing down every withdrawal or deposit into your account and every fee you pay for those services.
2. Subtract all withdrawals and fees from your balance and add all deposits so you know how much money remains in your account. Withdrawals include writing checks, making purchases with a debit card, and using ATMs to get cash.
3. Also, if there is a fee, write it down and subtract it from your balance. Otherwise, you may find that you have “overdrawn” your account.
OVERDRAWN
Being overdrawn means you have used more money than you put in your account. Any time you are overdrawn, banks charge fees called “overdraft” or “insufficient funds” fees and automatically subtract them from your account.
Obviously, that leaves you with even less money. In addition to bank fees, merchants or people to whom you gave the check may also charge you a fee for giving them a bad check—and that will cost you even more money!
One “hot check” (a slang term for checks written on accounts with insufficient funds) may cost you as much as $100 by the time you pay all of those extra fees. People who habitually and knowingly write “hot checks” or “bounce” checks (another slang term for being overdrawn) can be put in jail or fined for their careless or criminal behavior.
The same is true for overdrafts using a debit card. The bank may deny the transaction, leaving you in an embarrassing position in front of your friends—or it may allow the transaction to go through, leaving you with more fees to pay.
OVERDRAFT PROTECTION
Some banks will offer a special service called “overdraft protection” to help keep you out of trouble. But, you will also be charged a fee for using this service—so it will still be an unnecessary cost to you. Why give the bank extra money for fees when you could use that money for things you want or need?
Maintaining an accurate record of your transactions is the only way to protect yourself from costly mistakes with your bank account.