2. BALANCING A CHECKBOOK This lesson will teach you the importance of balancing a checkbook.

3. WHY IS IT IMPORTANT TO BALANCE A CHECKBOOK Balancing you’re checkbook ensures that there have been no mistakes made by the bank or the merchant in the transactions that you have had. It also lets you know to the penny how much money you have in the bank. If you balance your checkbook it will eliminate bouncing a check (writing a check with no funds in the bank). Today, there is a lot of bank fraud. Keeping on top of your checkbook balance can help you to know if someone has unlawfully used your account.

4. STEPS TO BALANCING THE CHECKBOOK - The beginning balance of the book/page should be the amount you opened the checking account with or carry it over from the previous page. - Enter the check number or transaction code. - Enter the date - Enter what the transaction was. - Fill in the amount of the deposit or payment or withdrawal. - DO THE MATH…… Figure out what your balance is by subtracting from the balance if it was a debit or adding from the balance if it was a credit.

5. Check Number or transaction code PARTS OF A CHECK REGISTER  Check Number  If you have written a check, put the check number here, or use the transaction code  DC: Debit Card  ATM for a cash withdrawal  DEP for a deposit  T for a transfer to or from your savings account Date of transaction Balance  Balance  The first amount should be the beginning balance of the checking account.  Every time you make a transaction it should be added or subtracted depending on the transaction. This way you will know what your balance is.  Date  Record the date of the transaction here.

6. PARTS OF A CHECK REGISTER Amount of Debit Amount of Deposit/credit Transaction Description  Transaction Description  Make a short note about the transaction.  Amount of Deposit/credit  Record the amount of money that was deposited or credited to your account.  Payment Amount  Record the amount of the payment. (i.e., amount going out/spent)

7. Number Or Code DateTransaction Description Payment Amount Deposit Amount Balance Beginning Balance 23747 11510/29High School 1800 21947 DEP10/30Paycheck 6275 28522 DEP11/4Birthday Money 2500 31022 ATM11/5Cash 1500 32522 11611/6Maverick – Gas 2250 30272 11711/10Smiths – Groceries 5235 ATM11/15Cash 2000 DEP11/16Paycheck 6275 Let’s Practice!

8. HOW TO MAKE BALANCING YOUR CHECKBOOK EASIER Keep your register up-to-date ALWAYS enter every transactions Don’t forget automatic payments and online bill pay Use a calculator!! Enroll in internet banking

9. GET IN THE HABIT Although it may not be a fun thing to do, it will save you many headaches and you will see the benefits in the end.