In practice, How to balance a checkbook is done like this:
If they did a good job logging everything, then how much money the bank says you have will be the same as what you worked out you spent from your log. So about every month or so, people would take their statement from the bank, and compare that with what they wrote in the little log book. Each time they would write a check, they would also make a note in a little log book they kept with their checkbook telling them who they wrote the check to and for how much.īut people weren't perfect and sometimes they would forget to write things in the log or they would take money out of their accounts (or put it in) in ways other than writing checks. In the far distant past, people would use checks to pay for most things when they didn't have cash handy. The phrase might seem odd to you if you're only used to using debit cards, which is a card attached to a checking account.īefore debit cards and online banking, people used checks to spend money from their checking accounts, and had to write the amounts down in a ledger to keep track of money going in and out, so as to know the current balance and not overdraw. = $900, so you have balanced your checkbook and will have $900 when all is processed. So, say you deposit $1000 in your account.īalancing your checkbook, you would write down any + or - transactions. This is helpful because sometimes checks take time to process. The bank will do it for you, but it's better to keep track yourself, to avoid spending more money than is actually in your account. Unlike a credit card or a credit account, a checking account is money that you have that exists in the positive.īalancing a checkbook just means keeping track of transactions in your acccount. A checkbook is attached to a checking account.
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