Your Checking Account

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. He has 25 years of experience counseling individuals and families concerning their personal finances.

---

Choosing Wooden Toys For Children

Wooden toys are one of the best alternatives for the... Read More

Talk Your Child Clever

Most parents can hardly wait for their baby to say... Read More

Advocating for Your Child with LD

Advocate: you've probably heard the term before. But what does... Read More

Diapers: Do You Choose Disposable Or Reusable?

Diapers..Changing a dirty diaper is not the best part of... Read More

How Public Schools Coerce Parents Into Giving Mind-Altering Drugs To Their Children

Despite the potentially dangerous side-effects of Ritalin, public school authorities... Read More

Parenting Your Teenager: The Teenager and the Gorilla

Q: A parent writes in to ask, "You write a... Read More

Guilty of Not Following Her Heart

Karen, a single never-married thirty-year old attorney has a four-year... Read More

Is a Mothers Love, Medicine?

Minus all meningitis thoughts. The flu symptons were strong. Headache,... Read More

Picky Eaters - The Dawn of Understanding

"In general my children refuse to eat anything that hasn't... Read More

How You Can Help Your Child To Be An Avid Reader

Reading is the most efficient and economical way to help... Read More

Parenting: The Road I Chose

Tripping over the shoes and toys that seem to clutter... Read More

Vouchers --- Parents, Dont Depend On Them

Vouchers, which give tax money to parents to pay for... Read More

How Well Do You Know Your Child?

Do you think you really know your child? I don't... Read More

Homeschooling Takes Your Child Out of Public School --- A Unique Benefit

Home-schooling removes children from public school. That alone makes home-schooling... Read More

Goal Setting for Kids

Goal setting is essential for building a successful life. However,... Read More

The Twenty-First Century Parent

John was a 43 year-old sales manager at a large... Read More

Things To Teach Your Teenage Driver

Is it hard to communicate with your teenager about issues... Read More

Do You Have the Loving Relationship With Your Children That You Desire?

Most people with children want to be good parents. The... Read More

So, My Child Has Been Recommended for Testing - What Do I Do Now?

You've just received a call from your child's teacher. As... Read More

Hiking with Children

There is nothing quite like hiking with small children. The... Read More

The Long Journey Home

Once upon a time, I thought I had it all.... Read More

Family Meetings 101

Family meetings provide opportunities for feelings to be aired and... Read More

Hearing Our Seriously Distressed Adolescents

The distressed adolescent often has feelings of abandonment, emotional detachment,... Read More

Child Separation Anxiety: Does Your Child Have It?

If you are a parent, then more than likely you... Read More

How to Stop Bad Behavior Before it Starts

Coping with a child's bad behavior, perhaps more than any... Read More

Now, They?re Bullying My Daughter in Our Home: Welcome to Cyber-bullying

Last night Tom's daughter, Sue, came out of her room... Read More

Let?s Google and Yahoo Our Kids? Education

I love Google and Yahoo. With Google and Yahoo I... Read More

Its OK For Your Child To Be Bored - In Fact, Its Recommended!

NY -- Strange as it may sound, bordom promotes happier,... Read More

Can Mineral Deficiencies Lead to Behavioral Problems in Children?

A while ago I received this story from David in... Read More

What a Parent Must Do to Stop Online Predators

Teens can freely access the Internet from computers at school,... Read More

Frequently Asked Questions About Reading To Your Child

Are you worried about your child's reading habits? Perhaps you... Read More

Its OK to Say No

In the last 20 years we've all been introduced to... Read More

Spending Time With Your Child

Why Is Spending Time with Your Child So Important?For children... Read More