Any tips on how to balance a checkbook? Mine is never balanced, even when I compare the bank's records with my own, and reconcile them, I still never get the same number as my bank has.

I don't bother. I just make sure they have all my credits and I have all their debits. That pretty much guarantees that I will always have at least as much as I think I have available.

Change banks.


Unless they tack on hidden fees.

I rarely if ever write checks, and every transaction is available to be viewed online, so you see EXACTLY where the money goes...
Why fotz with check registers unless you write a ton of checks and are worried you might not have enough to cover them all?? And in any event don't you get all the canceled checks back or at least have the ability to view them online?? You should easily be able to see where every penny goes.....

I also try to pay as many things by Credit Card as possible so that everything is clearly itemized on the same statement without ME having to play accountant....

That's exactly why. I've had way too many times that I wrote a check, but because I wasn't keeping records of my debits, I didn't realize that I didn't have the money in my account. Or, I wrote a check, but because it wasn't cashed until a few weeks later, I didn't have the money in my account by the time it was cashed.

http://sourceforge.net/projects/moneymanagerex

I don't have a credit card, cuz I don't want to have to pay yet another bill at the end of the month. By using a debit card, I am only spending the money I have. I also don't get MACYS and other store credit cards for the same reason.

Do you want to explain what this program is, have you ever used it, etc.? Also, my banker recommended I use Microsoft Money, do you know anything about it, and how does it compare to your program?

they can do that? your closing balance can be different from the opening balance less the listed debits and plus the listed credits? Like you can start with 100, but two things each at 10, deposit 30 and end up with 108???

I've seen it before. Bank of America is notorious for this. Also if you are just reviewing the debits and credits you might overlookd fees that are charged. It only takes missing it one time. Usually these fees show up annually.

If you make entries right after you make transactions (payments or receipts) then you should be able to compare your number to the bank. I recommend using a calculator when you do the math. Everyone is susceptible to small addition/subtraction mistakes and that can drive your crazy when you try to reconcile.

If your account is in disarray, you might just have to start from scratch and forget trying to reconcile the account right now. Meticulously record all your transactions from this point on and after a few months old checks will have cleared and you will be working with your new and improved numbers.

I recommend balancing your checkbook monthly. Also, make a notation in the checkbook on the date in which you do the reconciling. That way, if you are off in one month you have a reference point at which you can start checking your numbers. For example, if you know everything was balanced on March 31, then if you sit down on April 30 and things are off, you only have to start figuring from the beginning of April instead of going all the way back to who knows when to double check your numbers.

i always treat a written check as cashed.
i never balance my checkbook against the statement. i write checks only for rent, utilities, Drs co-pays, money gifts, sometimes for maaser (and the checks i record in the checkbook). the rest i pay mostly with the debit card. i always view my statements online though.

So do you balance your checkbook or not? What do you do if there is a different figure for your account in your checkbook as opposed to the online statement?

The program is a free money manager, which allows you to track your cash flow. It's similar to Quicken and Microsoft Money. One feature it does not have that Money and Quicken do is the ability to automatically download transactions from your bank and credit card companies. So you'd have to download the files and import them yourself.

With Money and Quicken, if you want to continue downloading automatically from your financial institutions after 2 years you need to pay and upgrade your software.

I haven't used Money Manager ex, but it is highly recommended across the Net as a good, free money manager.

i don't think it's balancing. i don't note credits and balance in my checkbook, only the checks that i wrote (not debit card transactions either). first i did it the right way, but no longer. i never had a bounced check in my life.

i look through the statement to make sure i recognize all the debits.

Quite frankly if you consider the time involved in balancing your checkbook regularly, I'm not sure the "payoff" justifies the time cost.

Same with me- except if I'm not recording my debits, then I don't have an accurate account of how much money I have.
For example: I have 100 in my account, but I have a pending debit card transaction for 50 that hasn't cleared yet, and I now write a check for $60. That check is going to cost me charges for going over (usually about 32 dollars).


Hm..you haven't sold me on MoneyManager. Has anyone tried MS Money? It was recommended to me, but I tried using it a couple of times and it did not seem to be very user friendly.




I have never bounced a check in my life- because banks will just let it clear, and then give you a charge for going over.
I used to do what you said- only keep track of checks. But as I mentioned above, if you don't figure the debits into your balance, you can think that you have a lot more money in your account than what is actually there.


If it will save me one charge for going over a year, it is worth it to me.

I am cringing at the poor financial management mentioned in this thread.

Balancing is probably not necessary if a person has a high balance relative to his usual purchases. For example, if a person has $15K in their account and they make standard purchases (groceries, clothes, small appliances and electronics, etc...) and they have regular income then they will in all likelihood not overdraw their account.

That said, it does not make sense for a person to have such a high balance in their checking account. Checking accounts get very low interest. It makes much more sense to have the bulk of your money in a higher yielding savings account of some sort and carry a minimal amount in the checking account. This, of course, requires the person to be aware of precisely how much money he has in his checking account when it comes time to transfer money in or out of it.

It is also necessary for someone who does not have a lot of money for whatever reason available in his checking account and/or does not have a regular source of income. This person is always at risk of overdraft due to not being aware of his current balance.

Even if someone isn't working, they should have a general sense of their main monthly expenses-- rent/mortgage, loans, credit cards, electricity, water, oil or gas, phone , internet , cable (if applicable-- of course, not all applies to every person).

People should not only be aware and concerned for bounced checks, but for bank minimums for an account...you don't want to be charged because you have less than $XXXX in your account. Writing a check on a margin and hoping that it'll go through is probably not the most fiscally responsible manner in which to maintain accounting of funds-- if anything, it can be rather problematic.

I try to use credit cards whenever possible as opposed to checks simply to make the bookkeeping easier. Plus it's free money!

that's what i really meant as well - treat all debit transactions as paid as well as the written checks. if you treat the pending transaction as paid, then you know you have only $50 left and can't write out a check for $60 before depositing (and leaving few more days for clearance) more money

this is more or less my situation. i have a steady income, know exactly what my expenses are. i don't have $15K in my checking account, but i have enough to be covered for all monthly expenses plus a few hundreds more just in case.

now, that i look back, i did have bounced checks (well, not exactly that - like Shir said, the bank paid them but had a huge penalty fee), but that was when my ex was in charge of finances

My personal addendum is that if a check hasn't been cashed in 1-2 months I'd follow up and find out if it will be cashed or is lost, etc. [I just did this and found out that a professional organization hasn't cashed my check and didn't acknowledge my new membership in any manner after 2 months-- I found out that they cash or deposit checks in batches and haven't gotten to it yet. blarg]

I'd figure it as though once the check is written, even though the amount still appears in my account, it's no longer mine to fiddle with...kind of like pending transactions.

I am unclear what you mean when you say "treat it as." In what manner are you recording this transaction to "treat it?" In your head? That's a terrible way to manage your finances and a sure way to get into trouble. If you mean by writing it down, well that is what balancing your checkbook is. It means writing down your transaction and putting checks you have written in the credit column on the left and subtracting that amount from your total balance. Even though you still technically have the money in your account, you consider it gone so you don't pay out more money accidentally.

Then see my second point. You shouldn't have a lot of money stockpiled in a low-interest checking account.

Finally, tova made another good point about minimum balances. Even if someone doesn't care exactly how much money they have, they should avoid minimum balance fees. These fees could be charges even if a person is very minimally under the minimum.

A top requirement of my future mate is that he will be able to handle the money because I certainly can't.

1. my expenses are limited -rent, utilities, food, sometimes clothing. once it happened to my mother that her landlord didn't get her rent check, so i had to call him. but she found out because the following month he was charging double with a fee. turns out it was lost in mail. so, in such cases, you'll find out the next month (rent and utilities). from then on my mother i salso very worried when a few days after she mails the check to them it's still in her account. i told her not to worry because the managements also depost checks in batches.

2. that's exactly what i meant by "treating them as cashed/processed)



1. by "treating them as cashed/processed" i mean act as if the money not in your account any longer.

as i mentioned earlier, i write down only the checks i'm sending out. all debit card purchases (90% of which is food) are not recorded, but i view my statement once/twice a week on the internet and can see if there is something suspicious happened. thats' why i said i "partially" balance my checkbook.

2. i hear you, but my amount on the checking account is nowhere that substantial. and if i'm loosing theoretical interest on a few hundreds $$ (200-300), i'm willing to do it for the time i don't have to sit down and sweat over the balancing the checkbook and writing down/savings every little receipt from the grocery.

3. it's a great point indeed. people should always read (and ask all the hidden charges) the fine print when opening/maintaning an account.

now, looking back, i'm thinking that i'm able to do all of this because i'm single and the only one taking out/putting in the money. when it's a joint account, it would be very smart to balance the checkbook, because both people can't keep trach of what the other one is spending.

Good idea...

[ [Im]Possible scenario:

Invisi-husband: Tova, I wanted to purchase some groceries today and took a look at our balance online, I'm sort of confused.
Tova: What's the matter?
Invisi-husband: I knew we had about $450 in the account, but it doesn't seem to be available.
Tova: Oh, yeah- I must have forgotten to tell you-- I bought the kayak I had my eye on. Yup, I should have mentioned it to you, as it's a 'big ticket item.' Here's some cash for the groceries...]

aha, try a $700 computer purchase and a very visible husband

The thing is that if a $700 purchase puts someone in danger of overdrawing their account then they should be balancing their checkbook. Their funds are not high enough to protect against relatively unusual spikes in spending.

Look, I realize I'm not going to convince you. You have your method and it works for you. But, young people reading this should understand the proper way to be responsible and account for their finances. Balancing the checkbook is not necessarily of great importance in and of itself, but it is an important part of overall responsible financial management.

VLG-- good thinking.

Truth is, if you're running with a low balance in an account with no overdraft protection you're putting yourself at risk of several different issues, including but not limited to-- bounced checks (with fees from your bank and processing bank), penalties for having a low balance or under the required minimum (or not, depending on type of account).

If you're running really, really low on funds, even $2 can make a huge difference! It's important to know and follow your spending-- also in the rising age of identity fraud, overcharges, etc.

1. i wasn't in charge of finances at the time, which i greatly regretted later. this is what happens when two people with different views on finances and their management marry each other (in case you think from this thread that i'm not responsible enough in managing my finances )

2. you are right. i'm definitely not advertising my method, cause every person is different and what works for one won't for another one.

My 'system':

Every day I check my checking account online to see which checks have cleared, how much is left, etc. I almost never write more than five checks a month, so the idea of balancing a checkbook is pretty ridiculous. I know how much I usually make and spend. Babysitting money and car expenses are the only real variables.

On Friday of every week, I do two things:

1. Transfer all excess money (money that doesn't have a check written against it) with the exception of a $100 cushion into my savings account (which thanks to an excellent tip-off is continuing to earn 6%).

2. Check all my credit cards online, see how much I spent and on what. Credit cards actually make things easier because I use each card for different things and therefore can track how much I'm spending on gas or food.

I realize that this system won't last forever, but it's great for now and I'm good at modifying it to fit my current financial needs.

I hear ya



Absolutely, I learned this the hard way.