Don’t underestimate the importance of balancing your checking account

January 24, 2023

A monthly accounting helps you spot errors, detect fraud and understand spending patterns.

 

If you’re one of the millions of Americans using a checking account, you should know how to keep it balanced, which may help you avoid overdraft charges and minimize the risk of suspicious activity going unnoticed.

A checking account is one of the most popular options for the more than 92 percent of American households who have a bank account, according to the Federal Deposit Insurance Corporation (FDIC).

 

Understanding your checking account

A checking account is a bank account that lets you easily access your deposited funds by writing a check. You can also shop online or use the debit card associated with your account. Checking accounts are available in several varieties, including basic accounts, student accounts and interest-bearing accounts. There are many benefits of using a checking account:

  • They often don’t require a qualifying credit score.
  • They can be created for individuals, couples or corporations.
  • They can be used to receive direct deposit paychecks.
  • Most checking accounts can be accessed instantly online.
  • Many of them require just a small balance, making it a useful learning tool for teens.
  • Most of them offer optional overdraft protection to keep your balance from going negative.

 

Monitor your checking account balance, transactions

Balance your checkbook by monitoring transactions, checking monthly statements and reconciling expenditures. Doing so provides a variety of benefits. You can spot bank or payment mistakes faster, reduce the risk of financial theft, limit overdraft fees and recognize spending patterns that may enable you to spend less.

 

Document transactions

A balanced checkbook starts with keeping track of every transaction you make. Though most of us don't physically write out many checks anymore, the check register is still a good place to note everything you spend. Otherwise, you could use a spreadsheet on your computer, a financial app for your smartphone or computer, or a receipt book where you keep receipts from every purchase made using your checking account.

 

Check monthly account statements

Whether you get your monthly account statement mailed to your home or receive it electronically, you’ll want to get in the habit of reading it line by line to make sure that nothing stands out as incorrect. Common mistakes and warning signs include:

  • Unusual expenditures
  • Charges from vendors you don’t recognize
  • Math errors

 

Reconcile what’s spent with what’s left

To avoid an overdraft, keep track of your checking account deposits and withdrawals. Reconciling your spending with your balance helps prevent overspending, which could lead to overdraft fees or checks being returned due to insufficient funds. A great way to stay ahead of spending is to keep a running balance of what’s available in your account. Even before a check has been cashed, it should be recorded so you know exactly what is in your account at any given time.

 

 

Now that you know how to keep your checking account in check, learn more about what kind of checking account might be best for you.

Related content

Housing market trends and relocation impact

Commercial real estate in 2020: Keeping up with the pace of change

The startup scene in Reno: The story of Breadware

The startup scene in Reno: Emerging tech leads the way

Buying or leasing? Questions to ask before signing a contract

Common pitfalls to avoid in the equipment financing process

Finance or operating lease? Deciphering the legalese of equipment finance

How to choose the right custodian for your managed assets

The secret to successful service provider integration

Insource or outsource? 10 considerations

Changes in credit reporting and what it means for homebuyers

Webinar: ESG for Corporations: Building an all-weather, long-lasting strategy

Solutions banks can offer during the COVID-19 pandemic

Unexpected cost savings may be hiding in your payment strategy

Safeguarding the payment experience through contactless

COVID-19 safety recommendations: Are you ready to reopen?

Protecting cash balances with sweep vehicles

What’s the difference between Fannie Mae and Freddie Mac?

Changes in credit reporting and what it means for homebuyers

High-cost housing and down payment options in relocation

What corporate treasurers need to know about Virtual Account Management

ABCs of ARP: Answers to American Rescue Plan questions for counties

Crypto + Relo: Mobility industry impacts

How to sell your business without emotions getting in the way

For today's relocating home buyers, time and money are everything

10 tips on how to run a successful family business

5 steps to take before transitioning your business

How entrepreneurs can plan for what matters most

Make your business legit

Talent acquisition 101: Building a small business dream team

How to establish your business credit score

How to test new business ideas

How I did it: Turned my side hustle into a full-time job

Costs to consider when starting a business

How to get started creating your business plan

How to redefine challenges with business collaboration

The costs of hiring a new employee

How to expand your business: Does a new location make sense?

3 signs it’s time for your business to switch banks

Common small business banking questions, answered

How to choose the right business checking account

Does your side business need a separate bank account?

How to build a content team

How to manage money tips

5 financial goals for the new year

How to track expenses

Key components of a financial plan

Do I need a financial advisor?

LGBTQ+ financial planning tips

Multigenerational household financial planning strategies

How to manage your money: 6 steps to take

Good money habits: 6 common money mistakes to avoid

Good debt vs. bad debt: Know the difference

Year-end financial checklist

How to manage your finances when you're self-employed

Estate planning documents: Living trusts vs. will vs. living will

How to talk about money with your family

How to protect your digital assets in your estate plan

Financial steps to take after the death of a spouse

Reviewing your beneficiaries: A 5-step guide

6 tips for trust fund distribution to beneficiaries

4 reasons estate planning is important

How to retire happy

Retirement planning in the gig economy

5 unexpected retirement expenses

Retirement planning strategies for dual-income families

How to build wealth at any age

Retirement income planning: 4 steps to take

4 tips to help you save for retirement in your 20s

Key milestone ages as you near and start retirement

Preparing for retirement: 8 steps to take

LGBTQ+ retirement planning: What you need to know

3 types of insurance you shouldn’t ignore

Is a Health Savings Account missing from your retirement plan?

8 steps to choosing a health insurance plan

What is Medicare? Understanding your coverage options

7 things to know about long-term care insurance

The connection between your health and financial well-being

Transitioning from the military to the civilian workforce

Working after retirement: Factors to consider

4 steps to finding a charity to support

7 year-end tax planning tips

Should I itemize my taxes?

Do your investments match your financial goals?

What types of agency accounts are available for investors?

Investment strategies by age

Can fantasy football make you a better investor?

A beginner's guide to investing

How to Adult: 5 ways to track your spending

Tips for navigating a medical hardship when you’re unable to work

Webinar: Uncover the cost: Starting a family

How to plan and save for adoption and in vitro fertility treatment costs

11 essential things to do before baby comes

Preparing for adoption and IVF

Family planning for the LGBTQ+ community

What documents do you need after a loved one dies?

Closing on a house checklist for buyers

Resources for managing financial matters after an unexpected death

What you need to know as the executor of an estate

Checklist: 10 questions to ask your home inspector

Student checklist: Preparing for college

Tips to earn that A+ in back-to-school savings

Checklist: financial recovery after a natural disaster

College budgeting: When to save and splurge

How to save money in college: easy ways to spend less

Webinar: Uncover the cost: College diploma

6 questions students should ask about checking accounts

How to gain financial independence from your parents

Practical money skills and financial tips for college students

Webinar: Bank Notes: College cost comparison

How I did it: Paid off student loans

Annual insurance review checklist

Recognize. React. Report. Caregivers can help protect against financial exploitation

Is online banking safe?

From LLC to S-corp: Choosing a small business entity

8 tips and tricks for creating and remembering your PIN

Recognize. React. Report. Don't fall victim to financial exploitation

3 tips for saving money when moving to a new home

Tips for handling rising costs from an Operation HOPE Financial Wellbeing coach

3 ways to keep costs down at the grocery store (and make meal planning fun)

Is raising backyard chickens a good idea financially?

5 ways to maximize your garage sale profits 

3 financial tools to help automate your finances

Is it cheaper to build or buy a house?

Friction: How it can help achieve money goals

Should you buy now, pay later?

5 tips for creating (and sticking to) a holiday budget

Financial checklist: Preparing for military deployment

5 things to consider when deciding to take an unplanned trip

6 pandemic money habits to keep for the long term

Webinar: Smart habits and behaviors to achieve financial wellness

How I kicked my online shopping habit and got my spending under control

Working with an accountability partner can help you reach your goals

Growing your savings by going on a ‘money hunt’

How I did it: Learned to budget as a single mom

Your 4-step guide to financial planning

How to decide when to shop local and when to shop online

The mobile app to download before summer vacation

A who’s who at your local bank

How to stay financially focused in the face of economic uncertainty

Webinar: Common budget mistakes (and how to avoid them)

Does your savings plan match your lifestyle?

Webinar: Uncover the cost: Wedding

Adulting 101: How to make a budget plan

Tips to overcome three common savings hurdles

What military service taught me about money management

Webinar: Uncover the cost: International trip

Allowance basics for parents and kids

Helpful tips for safe and smart charitable giving

Webinar: Mindset Matters: How to practice mindful spending

3 awkward situations Zelle can help avoid

Personal loans first-timer's guide: 7 questions to ask

How having savings gives you peace of mind

How to save money while helping the environment

How can I help my student manage money?

How to best handle unexpected expenses

Steer clear of overdrafts to your checking account

You can take these 18 budgeting tips straight to the bank

How to manage money in the military: A veteran weighs in

Save time and money with automatic bill pay

Multiple accounts can make it easier to follow a monthly budget

Personal finance for teens can empower your child

Stay on budget — and on the go — with a mobile banking app

Which is better: Combining bank accounts before marriage — or after?

It's possible: 7 tips for breaking the spending cycle

U.S. Bank asks: Transitioning out of college life? What’s next?

U.S. Bank asks: Do you know what an overdraft is?

Is it time to get a shared bank account with your partner?

Do you and your fiancé have compatible financial goals?

U.S. Bank asks: Do you know your finances?

How to save for a wedding

7 steps: How couples and single parents can prepare for child care costs

Don’t underestimate the importance of balancing your checking account

9 simple ways to save

Tips for working in the gig economy

Here’s how to create a budget for yourself

Tips to raise financially healthy kids at every age

First-timer’s guide to savings account alternatives

Dear Money Mentor: How do I set and track financial goals?

Checking and savings smarts: Make your accounts work harder for you

Money Moments: 3 smart financial strategies when caring for aging parents

Lost job finance tips: What to do when you lose your job

5 tips for parents opening a bank account for kids

5 reasons why couples may have separate bank accounts

Money management guide to financial independence

30-day adulting challenge: Financial wellness tasks to complete in a month

Money Moments: How to manage your finances after a divorce

Money Moments: 8 dos and don’ts for saving money in your 30s

7 financial questions to consider when changing jobs

Travel for less: Smart (not cheap) ways to spend less on your next trip

Myths vs. facts about savings account interest rates

Overdrafts happen: Steps to get you back on track

What’s in your emergency fund?

Dear Money Mentor: How do I pick a savings or checking account?

Certificates of deposit: How they work to grow your money

What you need to know about renting

What I learned from my mom about money

It’s time for a fresh start: A new way of thinking

Understanding guardianship and power of attorney in banking

How to stop living paycheck to paycheck post-pay increase

Practical money tips we've learned from our dads

What financial advice would you give your younger self?

How to increase your savings

Financial gifts can be a valuable – and fun – choice for the holidays

Parent checklist: Preparing for college

Consolidating debts: Pros and cons to keep in mind

Your financial aid guide: What are your options?

How to open and invest in a 529 plan

Be careful when taking out student loans

Using 529 plans for K-12 tuition

How grandparents can contribute to college funds instead of buying gifts

How to apply for federal student aid through the FAFSA

How to use debt to build wealth

7 steps to keep your personal and business finances separate

How to use your unexpected windfall to reach financial goals

Know your debt-to-income ratio

Crypto + Homebuying: Impacts on the real estate market

For today's homebuyers, time and money are everything

Overcoming high interest rates: Getting your homeownership goals back on track

How I did it: Bought my dream home using equity

Should you buy a house that’s still under construction?

Managing the impacts of appraisal gaps in a hot housing market

Preparing for homeownership: A guide for LGBTQ+ homebuyers

How I did it: Built living spaces to support my family

Spring cleaning checklist for your home: 5 budget-boosting tasks

House Hacks: How buying an investment property worked as my first home

Buying a home Q&A: What made three homeowners fall in love with their new home

Saving for a down payment: Where should I keep my money?

What are conforming loan limits and why are they increasing

Military homeownership: Your guide to resources, financing and more

The lowdown on 6 myths about buying a home

Home buying myths: Realities of owning a home

How I did it: Bought a home without a 20 percent down payment

Checklist: 6 to-dos for after a move

4 ways to free up your budget (and your life) with a smaller home

Webinar: Uncover the cost: Building a home

Your guide to breaking the rental cycle

How I did it: My house remodel

Money Moments: Tips for selling your home

Quiz: How prepared are you to buy a home?

Dear Money Mentor: When should I refinance a mortgage?

Get more home for your money with these tips

Beyond the mortgage: Other costs for homeowners

Are professional movers worth the cost?

Money Moments: How to finance a home addition

What is refinancing a mortgage?

10 questions to ask when hiring a contractor

5 things to avoid that can devalue your home

What is an escrow account? Do I have one?

What is a home equity line of credit (HELOC) and what can it be used for?

Building a dream home that fits your life

10 ways to increase your home’s curb appeal

What to know when buying a home with your significant other

Is it the right time to refinance your mortgage?

Webinar: Mortgage basics: How much house can you afford?

Webinar: Mortgage basics: Finding the right home loan for you

Should you get a home equity loan or a home equity line of credit?

Webinar: Mortgage basics: How does your credit score impact the homebuying experience?

These small home improvement projects offer big returns on investment

Webinar: Mortgage basics: What is refinancing, and is it right for you?

Webinar: Mortgage basics: Buying or renting – What’s right for you?

Webinar: Mortgage basics: Prequalification or pre-approval – What do I need?

Webinar: Mortgage basics: 3 Key steps in the homebuying process

8 steps to take before you buy a home

Home equity: Small ways to improve the value of your home

10 uses for a home equity loan

How do I prequalify for a mortgage?

How to use your home equity to finance home improvements

Is a home equity line of credit (HELOC) right for you?

Can you take advantage of the dead equity in your home?

6 questions to ask before buying a new home

Webinar: Uncover the cost: Home renovation

Improving your credit score: Truth and myths revealed

U.S. Bank asks: What do you know about credit?

How I did it: Deciding whether to buy an RV

What you should know about buying a car

Car shopping: Buying versus leasing your next vehicle

How to winterize your vehicle

Questions to ask before buying a car

Take the stress out of buying your teen a car

Start of disclosure content

Loan approval is subject to credit approval and program guidelines. Not all loan programs are available in all states for all loan amounts. Interest rate and program terms are subject to change without notice. Mortgage, home equity and credit products are offered by U.S. Bank National Association. Deposit products are offered by U.S. Bank National Association. Member FDIC.