Checking and Debit Accounts A-Z, Part 2

A} Your check register (see Illustration #1):

A1) The first line describes what each column is for (number-date-description-etc.) and gives you a section (far right) to record your beginning balance. (If this is a new page as opposed to a new register, you would put the last balance from the page before.)

A2) The next lines are for recording your transactions (what you pay or deposit) and is separated by two different colors. There are many ways you can use these lines but the description below is usually the easiest to do since it keeps everything well recorded and easy to find. Once you are adept at keeping your check book balanced, you can adjust how you record things in your register to your liking. Since the bank has conveniently separated the lines by white and gray shading, we will use one white and one gray line for each transaction we record.

a) Number: in this column on the first line you should record the number of the check you are writing, or debit if you are using your debit card. Write deposit if you are depositing money into your account and memo if you are making a correction or noting something of importance such as when you last balanced with your bank statement. Leave the second line blank.

b) Date: This will be the date of the transaction, be sure to write it clearly in case you have to go back to it at a later date. Use the first line for the month and the second line for the day.

c) Description of Transaction: In the first line of this column you will write the name of the company or person the money is going to or what type of deposit it is, in the second line you will write any explanation or further information about the transaction such as monthly fees or donation.

d) Payment/Debit (-): Record the amount of your payment on the first line of this column. Payments and deductions from your account are all that go here; note the (-) after the description which means anything that is deducted from your account. Leave the second line blank.

e) This column will usually have a checkmark and a large T. This is the column you use to ‘check’ off the items that have cleared (or been processed by) the bank. If the item DOES NOT show up on your bank statement, you WILL NOT check it here. This column is only used when balancing (or reconciling) your bank statement to your check register. You will be using the line with the amount in it.

f) Fee if any (-): This is the column you would use to record any fees you might have from the transaction such as fees for using an ATM not affiliated with your bank. Most fees are noted up front when your transaction is made, however your bank may also add fees for such transactions, so be sure to check when you balance with your statement. Use the first line for this amount, but remember to add it to your transaction amount before balancing your checkbook.

g) Deposit/Credit (+): This column is used for any transaction that adds to your balance such as deposits you make by hand or automatic deposits from work; note the (+) after the description which means anything in this column is added to your account. Use the first line for this amount. Leave the second line blank.

h) Balance: This is where you will balance your account so that you always know how much you have left in the account. Put the transaction amount on the first line (include any fees that may have been charged or will be charged). Add or subtract the amount to the balance above it and put the new balance on the second line.

A payment of $60.00 to the grocery store for food for the week.

Write Debit in column A, write the date in column B (first and second line), write the name of the store in column C first line and weekly groceries on the second line C, write the amount of the transaction in column D, skip column E write any fees that might pertain in column F (usually this only pertains to ATMS), skip column G, write the amount of the transaction in column H first line and then deduct the amount from the balance above it, write this amount in the second line in column H which becomes your new balance. Please see Illustration #2 which shows this transaction written into a check register with a beginning balance of $100.00.

A} I cannot stress this enough-----record everything on your check AND in your check register (Illustration #1). Each check register comes with lines highlighted in gray and then white and then gray or vice versa. When you record your information you should use the first line for the check number (or debit if that is what it is), who to, and amount which you then carry over to the far right and record the amount again with either a ‘+’ or ‘-‘ to show how it will affect your balance. The second line is for explanations, reasons, etc. and then the balance calculated and recorded to the far right.

B} Be sure to record any fees, additional costs or charges, additional information, etc. in the register before you calculate your balance. Don't wait 'until later' or you might forget a crucial piece of information (like $1.00 charge from ATM).

C} Calculate your balance immediately or as soon as possible so you always know what you have in your account. It is very hard to be in a hurry and look at your register and see several payments or checks that have been written in but not balanced. How do you calculate to see how much you have? Also, if you check for an electronic balance using an ATM or on-line banking, items that you have paid may not yet be recorded and the amount will most certainly be incorrect.

D} Record information on the memo line in your check register as well as on your check so you remember why you made the payment or wrote the check. This comes in handy in the future when you need to prove to someone that you made the payment.

E} Keep all of your receipts and check your register to be sure each payment or charge is recorded before filing the receipt away for future reference. (You will be surprised how important this step will be when balancing your checkbook and coming to an amount that does not match what you have in your register. You pull the receipt from your file and discover that you actually recorded the wrong amount. OR, you might check the receipt and discover the bank took too much out for a charge in which case you would bring the receipt to the bank for correction of your account. Without the receipt, the bank cannot make the change because there is no proof that the charge was in error!)