Use the App
Opening up a checking account is simple. Go to the bank with proper identification and enough funds to open an account. Most of us have had a checking account since early adulthood, so why do some people still have trouble keeping their checking account balanced? Gone are the days where it’s necessary to go to the bank or find an ATM (Automatic Teller Machine) to check your balance. Nowadays, all you need to do is log into your bank on a PC or through your banks own app on your smart phone.
💡 Fun Facts…
| 1) The average American has 4.5 checking accounts |
| 2) The first checking account was created in the late 1780s |
| 3) The average American writes 25 checks per month |
Watch Auto Bill Pay
So why do so many people still have trouble managing their checking account? Automatic bill pay can be one reason, especially if the debtor doesn’t take out the same amount on the same day of the month. Even if you check your balance frequently, it’s easy to forget about an automatic bill payment and think you have more money in your account than you actually do. All banks have smart phone apps that can help you keep tabs on your money as well as make sure you haven’t been over-charged anywhere. You should also make it a habit to keep receipts for purchases until you’ve checked your account history to make sure what was withdrawn matches the receipt.
Fees may also cause you to think that you have more in your account than you actually do. Be sure know what fees are associated with you account ahead of time. They can range anywhere from overdraft fees: when you withdraw more than you have in your account (BankRate reported that the average overdraft fee was around $35); maintenance fees: a re-occurring charge from the bank for their services (usually charged automatically); ATM fees: if you withdraw money from an out-of-network bank, you may have charged a few dollars.
Use Alerts
This can be especially important concerning things like adding a tip to a restaurant or take-out bill. You’ll want to make sure that what you tipped is all that was charged beyond the total of the bill. While we’re on the subject, you’ll also want to know what safeguards your bank has in place to protect you from identity theft. Does your bank and it’s app have an alert that can be set for withdrawals or purchases over a set amount? You can either use it to alert you about any withdrawals, this way you have a confirmation for your own record-keeping, or you can use it for you own safety to make sure no fraudulent transactions take place. According to a report by the Aite Group, 2% of Americans experience fraudnlent charges on their checking account with the average incident value of around $1,000! Usually, you can set an alert to be sent to your email as well.
Stay Organized
One of the keys to keeping your checking account balanced is to be organized and consistent. Check your balance and transactions at least once a day, whether you use a spread sheet on a PC or the ledger in your check book. While it’s a good idea to do both, you should at least keep the current balance in your checkbook ledger. Whether you write a lot of checks or not, don’t forget to include all ATM transactions. It may also be helpful for you to use a budgeting tool or app. According to a recent survey conducted by BankRate, almost 40% of Americans do no balance their checkbook on a regular basis. To take it one step further, almost 50% of Americans do not keep track of what they spend monhtly.
Add and Subtract
Start with your balance then add deposits, then subtract all payments whether by check or by your checking account debit card. If you use a debit card on an account you also write checks from, it is especially important to transfer the correct balance. Enter any ATM withdrawal or debit card purchase in the check book register and correct the balance. This way, when you write checks for bills or anything else, you’re subtracting the amount of the check from the correct balance to keep an accurate balance written in the register. If you do choose to keep a spreadsheet on a PC instead, make sure you back it up to a separate drive such as a USB thumb drive or on a cloud drive.
OPINION
Today, opening a checking account is so easy – there’s no excuse not to have one! There are usually no more minimum account sizes and most fees have been eliminated. With online bill paying, checking accounts have become really convenient and help you avoid missed payments. And keeping your checkbook balanced is super easy as well, with online software and apps, and built-in tools that your bank provides. Along with your account comes a debit card, which many people find is much more convenient that carry cash and change around. Pretty much every retail establishment now accepts debit cards as payment.
