![]() ![]() Or worse, he’ll forget he made a purchase in the first place and run the risk of over-drafting his account or blowing his budget. Otherwise, he will end up stockpiling receipts (and let’s face it, he’ll lose some). Your student should record his purchases and deposits frequently. It’s also possible that you have been a victim of fraud, so stay on the lookout for unusual debits. If the amounts match, you have successfully balanced your checkbook! If they don’t, look for what you may have missed. With online banking, you can compare your balances at any time. Compare the balance in your register to the balance on your statement. ![]() It will list your account balance and your monthly activity. Every month you get a statement from your bank (either through the mail or email). You should periodically compare the balance you have in your register to the balance of your account. Write that number in the account balance space in the row. Now that you have added Grandma’s money, your account balance is $365. After your Target run, your account balance was $335. Treat deposits as positive numbers since they add money to your account. ![]() Let’s say that Grandma gave you $30 for your birthday. This time enter the amount in the deposits column. Again, the descriptions are only a memory prompt “Grandma bday check” or “babysitting money” are sufficient descriptions. When you deposit money (whether it be cash, check, or an electronic transfer), enter the date and description. If your account balance started at $350, you would write $335 in the account balance column in the row of “Target-shirt.” Step 4: Enter Your First Deposit That means you will subtract the amount from your account balance. It could be as simple as “Target-shirt.” Then enter $15 in the debit column of your checkbook.Īnything in the debit column should be considered a negative number because they take away money from your account. Then write a description of the purchase. If you used a debit card, leave the check number space blank. If you used a check, enter the check number. Let’s say you went to Target and spent $15 on a shirt. Record your account balance in the upper right corner of the register under the “Account Balance” column. You could also create a digital spreadsheet. If you don’t have a checkbook register, you can print off a template online. A register is a spreadsheet that has columns for the date, check number (if applicable), description of the purchase or debit, outgoing payments, deposits, and account balance. If you have checks, your bank will likely have provided you with a checkbook register. Here’s how you can explain how to balance a checkbook to your kids. If you can add and subtract, you can balance a checkbook. Steps to Balance a Checkbook for Studentsīalancing a checkbook is real-life math, but it doesn’t take advanced skills. It can also give them valuable skills to help them plan and stick to a budget. You may not always require your student to balance a checkbook (if they have a mobile banking app), but this training will change how they think about spending and saving. When kids balance a checkbook, they are less likely to make impulse purchases and value their hard-earned money more. When they physically add and subtract their credits and debits, kids are more likely to “count the cost” before they spend. If your student has an online banking app, you may wonder why he or she needs to learn to balance a checkbook. When you know how much money you have and where it’s going, you will quickly spot any unusual charges. Balancing a checkbook also is a step toward fraud prevention. Considering the standard overdraft fee is around $35 per incident, they should avoid it. It also can prevent your kids from over-drafting their accounts (spending more money than they have). It’s the first step to making a budget and keeping it. You keep track of the money flowing out and the money coming in. That’s where balancing a checkbook comes in. In this age of swipe, swipe, swipe, is it essential that kids know how to balance a checkbook? Yes! You want your kids to understand how to manage money, which starts with knowing how much money you have. Why Kids Should Learn to Balance a Checkbook In financial terms, it means adding your credits and debits. What Is Balancing a Checkbook?īalancing a checkbook–even if you don’t have a physical checkbook–means keeping track of the money going out and coming into your checking account. Balancing a checkbook is a life skill, but how do you teach it? Here’s all you need to know to teach kids to balance a checkbook. ![]()
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