Checking accounts are an absolute necessity these days. You can either have a checking account or run to the bank or other outlet for money orders. Many people pay for almost everything with a check including groceries, gas, clothes and a long list of other things. When you add an ATM card to this picture, your chances for a potential problem is greatly enhanced.
Don't get me wrong. There are many people that can keep their check book up to date, even deducting all of the ATM advances and automatic withdrawals as they make them. However, too many people that write checks for everything wind up not entering a check when it is written or an ATM advance when it is made. The result is a bounced check fee of up to $25 for the bank and god only knows what the store where you wrote the check could charge you.
It seems like carrying cash to pay for things isn't the "IN" thing to do. When I'm in the check out line, most people are paying with a credit card, debit card, or check. I realize that carrying cash has it's risks. You could lose it or have it stolen. What are the risks when paying by check? There are absolutely none if you enter each check and properly deduct the amount from your account. However, I have counseled people that have as much as $100 per month in overdraft fees. This isn't just for one month. This is an average over a six month period. That is a lot of money that these people couldn't afford.
What's the best way to handle my checking account?
If you don't have problems keeping up with your checking account, keep doing what you are doing.
If you occasionally have bounced checks, I recommend that you use your checking account only to pay your monthly bills and use cash for everything else. If you have an ATM card, destroy it.
With that said, I know you will probably not quit writing checks or destroy your ATM card. So let's look at what you need to do to keep up with your checking account.
Determine exactly how much money you have in your account even if you have to go to the bank for help.
Enter that information on a new page in your check register.
Enter the date, your check number, payee and amount in your check register when you write the check. Don't worry about the people in line behind you. This will only take a few seconds. If you like, you can deduct the amount of the check when you get home.
Take your check book with you when you use the ATM and enter your withdrawal while you are still at the machine.
Develop a system to deduct automatic withdrawals. It is probably best to deduct these on the first of each month.
Add any deposits as you make them. You need to find out how much and when direct deposits should be entered in your check register.
When you receive your bank statement, reconcile it as soon as possible. If you find any discrepancies check them out immediately. Don't give up until you are sure you have resolved the problem. The balance you show in your check register should match the bank, less any bank charges.
When you reconcile your bank statement be sure to clearly mark the checks that have been returned to you. One of the biggest problems people have with overdrafts is missing a check that is taking a long time clearing the bank. Go back at least a month to make sure all previous check have cleared.
I really don't mean to insult anyone's intelligence with this article. Having problems with your checking account, as with all other money problems, isn't a matter of intelligence anyway, it's a matter of discipline. It can cost you a lot of money by not applying that discipline to managing your checking account.
Terry Rigg is the author of Living Within Your Means - The Easy Way http://www.homemoneyhelp.com/ebookadpage.html and editor of The FREE Budget Stretcher Newsletter and Budget Stretcher web site http://www.homemoneyhelp.com/ebookadpage.html He has 25 years of experience counseling individuals and families concerning their personal finances.
executive chauffeured services Bradford .. Madison to Airport carQ. How do I overcome the 16-year-old who does things... Read More
All of us, including your child, entered this world equipped... Read More
Paula's last child had just gone off to college and... Read More
Think back to your own childhood. Chances are, some of... Read More
Dear Camille,As I thumb through the photographs that I carry... Read More
Until about the age of six, children do not generally... Read More
Ok. So you're a dad to be. If you're like... Read More
A common problem many times facing parents is Colic. Estimates... Read More
My name is Duncan and I'm 2 years old. I... Read More
It can be hard being a parent with a teen... Read More
As a parent, are you at your wits end? Does... Read More
In stepfamilies, big holiday expectations can lead to big disappointment--and... Read More
Dear Sir, It was with some interest that I read... Read More
Here are ten simple pleasures you can enjoy with your... Read More
Do you really want your child to enjoy playing with... Read More
Should a parent give a child a tangible reward when... Read More
No matter how old your children are, you have an... Read More
Nurture and TeachThe single most important thing caregivers can do... Read More
Graphology for Child development.:- Graphology is the science of understanding... Read More
In today's busy world, many parents have lost the art... Read More
According to a September 2004 study by the RAND Corporation,... Read More
As mothers, we play so many different roles and most... Read More
If you had to spend 4 or 5 hours in... Read More
We know that you want your little guy or gal... Read More
"Now don't you go getting any ideas, Harold.""Don't you get... Read More
O'Hare Chicago prom limo ..Home schooling. What is it? What does it mean to... Read More
Would you hand a child calculus problems once she was... Read More
When you think about it, probably the one thing that... Read More
Julia Roberts recently gave birth to twins: Hazel and Phinnaeus.... Read More
There is little doubt that reading, 'riting and 'rithmetic are... Read More
I am a single mother of a 17 year old... Read More
All babies cry, but if yours cries a lot, isn't... Read More
Many people consider plush toys great for children. They say... Read More
She slipped her small, soft eight-year-old hand into mine. Her... Read More
The following spelling games can be used by parents to... Read More
Q: A parent writes in to ask, "You write a... Read More
Every now and then I'll get a story sent to... Read More
Joey steps away from his time out chair "I won't... Read More
Back in college, I wrote for a five-day-a-week, award-winning campus... Read More
Potty training fears, often called toilet terrors, are common among... Read More
One of the most difficult struggles in life for a... Read More
We are all aware of the child obesity epidemic that... Read More
Those of you that have children know what an excursion... Read More
Bath time can be fun or it can be a... Read More
Finding answers to a child's underachievement is often a difficult... Read More
What Children Look for in a Friend?Is this child fun... Read More
Many parents struggle with solutions to put their child on... Read More
If your child or teen has been diagnosed with Attention... Read More
It is human nature to feel competitive and envious toward... Read More
Spending quality time with your children doesn't need to cost... Read More
Parenting |