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Personal Finance Courses: Managing Your Money at a Bank or Credit Union

Introduction to Managing Your Money at a Bank or Credit Union Establishing a Relationship with a Bank or Credit Union How to Choose Bank Accounts to Meet Your Needs Understanding Bank and Credit Union Fees Opening Accounts at a Bank or Credit Union Check Cashing Stores Managing Your Bank Accounts Responsibly Overdrafts on Your Checking Account Checkbook Simulation Activity Summary of Managing Your Money at a Bank or Credit Union
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Managing Your Bank Accounts Responsibly

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Managing Your Bank Accounts Responsibly

Recordkeeping

Managing your bank accounts responsibly is all about good recordkeeping. While it is important to manage all of your accounts regularly, your checking account is likely the most important account to monitor closely. This should be your primary account for incoming deposits through your job(s) and outgoing expenses to meet your day-to-day and week-to-week spending needs.

In the past, most people kept track of their deposits and withdrawals by handwriting them in a paper register. At the end of the month when they received their paper bank statement they would sit down and compare each transaction they wrote in the register to each transaction listed on the bank statement. If the balance on their statement was different from the balance in their register they would look for what was causing the discrepancy. The most common types of discrepancies were usually these:

  • Outstanding checks written to others but not yet cashed
  • ATM transactions not entered in the register
  • Deposits made but not entered in the register
  • Fees charged but not entered in the register
  • Addition and subtraction mistakes

Today, we all have access to wonderful online banking tools to assist us with managing our accounts. While it is a benefit to have access to our account balances and transactions through our computer and mobile devices, individuals can still mismanage their accounts if they don’t create a disciplined process for reviewing and monitoring their accounts.

Online banking tools

Online banking tools make it easy to both monitor your accounts and manage your cash flow effectively. You will become financially savvy if you build good habits for reviewing your accounts regularly. A few of the key benefits of monitoring your accounts regularly are:

  • You know the balance in your accounts before making a purchase.
  • You can review your deposits and withdrawals regularly for accuracy.
  • You can transfer funds from your savings to your checking account if your balance is getting low.
  • You can get a handle on your spending and saving habits.

Let’s take a look at how you can use online banking tools efficiently in your daily life.

VIEW ALL OF YOUR ACCOUNTS IN ONE SPOT

View of all three accounts


MONITOR ALL OF YOUR TRANSACTIONS INSTANTLY

All transactions listed in order


EASILY TRANSFER FUNDS FROM ONE ACCOUNT TO ANOTHER

Transfer funds from one account to another


HAVE YOUR BANK PAY YOUR BILLS AT NO COST

Paying your bills via your bank account


COMPARE YOUR STATEMENTS TO YOUR TRANSACTION REGISTER

Comparing your statements to your transaction register

As discussed earlier, be sure to identify discrepancies between the balance on your statement and the balance in your check register. Look for outstanding checks not yet cashed, fees charged and ATM or debit transactions you forgot to enter. Also, look for charges not familiar to you and research them to ensure you do not have any fraudulent transactions. Fraudulent transactions usually occur if someone stole your debit card PIN number or checkbook. Be sure to keep this information confidential and in a safe location.