BALANCING A CHECKBOOK This lesson will teach you
BALANCING A CHECKBOOK This lesson will teach you the importance of balancing a checkbook.
WHY IS IT IMPORTANT TO BALANCE A CHECKBOOK Balancing you’re checkbook ensures that there have been no mistakes made by the bank or the merchant in the transactions that you have had. It also lets you know to the penny how much money you have in the bank. If you balance your checkbook it will eliminate bouncing a check (writing a check with no funds in the bank). Today, there is a lot of bank fraud. Keeping on top of your checkbook balance can help you to know if someone has unlawfully used your account.
STEPS TO BALANCING THE CHECKBOOK - The beginning balance of the book/page should be the amount you opened the checking account with or carry it over from the previous page. - Enter the check number or transaction code. - Enter the date - Enter what the transaction was. - Fill in the amount of the deposit or payment or withdrawal. - DO THE MATH…… Figure out what your balance is by subtracting from the balance if it was a debit or adding from the balance if it was a credit.
PARTS OF A CHECK REGISTER Check Number or transaction code Date of transaction Balance v v v The first amount should be the beginning balance of the checking account. Every time you make a transaction it should be added or subtracted depending on the transaction. This way you will know what your balance is. Check Number If you have written a check, put the check number here, or use the transaction code v v DC: Debit Card v ATM for a cash withdrawal v DEP for a deposit v T for a transfer to or from your savings account v Date v Record the date of the transaction here.
PARTS OF A CHECK REGISTER Amount of Deposit/credit Transaction Description Amount of Debit v Transaction Description v Make a short note about the transaction. v Payment Amount v Record the amount of the payment. (i. e. , amount going out/spent) v Amount of Deposit/credit v Record the amount of money that was deposited or credited to your account.
Let’s Practice! Number Or Code Date Transaction Description Payment Amount Deposit Amount Beginning Balance 237 47 115 10/29 High School 18 00 219 47 DEP 10/30 Paycheck 62 75 285 22 DEP 11/4 Birthday Money 25 00 310 22 ATM 11/5 Cash 15 00 325 22 116 11/6 Maverick – Gas 22 50 302 72 117 11/10 Smiths – Groceries 52 35 ATM 11/15 Cash 20 00 DEP 11/16 Paycheck 62 75
HOW TO MAKE BALANCING YOUR CHECKBOOK EASIER • Keep your register up-to-date • ALWAYS enter every transactions • Don’t forget automatic payments and online bill pay • Use a calculator!! • Enroll in internet banking
GET IN THE HABIT Although it may not be a fun thing to do, it will save you many headaches and you will see the benefits in the end.
- Slides: 8