Tips for Managing Your Checking Account

Copyright (c) 2009 Sherry Tingleyyou cannot go personally to the bank and you use the
There are five things you can do to manage yourtelephone instead, be ready to discuss the situation in
checking account. Some of these steps are verydetail to the service representative.
easy to do and others some people never doMoney management is much easier when you know
because they are careless record keepers.where your money is going. It is the proof of all your
The first step is to choose a bank that you like. Go tofinancial transactions so it is essential that you keep a
the various banks and credit unions and ask themcopy of them for your future reference. Not just any
about the different kinds of checking accounts thatcopy but you need a written records so print them out.
they offer to their clients. The most important questionEven your online banking transactions should be printed
you might ask is about all the fees that go with theout. When it is time to throw your records out, shred
account such as the ATM fees, cost of check,the documents first for they contain vital information
monthly fees, overdraft protection and overdraftyou would not want other people to have.
charge. You should also ask if the account in questionStep number four is to keep a close eye on all
would be available for online banking transactions. Freeautomatic payments and deposits so you can be
checking is always a good bonus but do not baseassured of its accuracy. Even if the system is in
your decision solely upon it.automatic already, you should not assume anything.
The second step has to do with recording yourYou should have a general idea of what your normal
transactions. Keeping records can be boring andtransactions look like so you can spot things that are
tedious, but it needs to be done. Put down in writingout of the ordinary.
every monetary transaction, all deposits and evenStep number five is to avoid a zero balance like the
ATM withdrawals. This process will help you keepplague. Do not totally deplete your checking account.
accurate bank records.You should always keep a cushion of a few hundred
The third step is to balance your checking accountdollars in your account so you can use this money as
transactions every month. When you get your monthlya hedge against emergencies and overdrafts. If you
statement from the bank, reconcile it with the data youare smart, you'll have set up an overdraft protection
input in your check register. When you do this, you canaccount so you don't get charged excessive fees if
often find mistakes and most often it is your mistake.you do make a mistake in your records that causes
Sometimes it is a true banking error or it could even beyou to go below zero.
fraudelent activity. Finding mistakes can help preventFollowing these five suggestions will help you on your
overdraft fees and general problems. In case thereway to good money management skills and help you
are errors and discrepancies, contact the banklive life more comfortably.
immediately in order to correct it as soon as possible. If