Do you balance your checkbook/reconcile your account?

[disneysteve]

No, I haven't done this in several years.

Why? Probably because of mint.com. I visit every day, and I see every transaction.

When you say "every transaction" does that mean every transaction that you initiated or every transaction that occurs on your account?

[feh]

When you say "every transaction" does that mean every transaction that you initiated or every transaction that occurs on your account?

Every transaction that occurs.

[disneysteve]

Every transaction that occurs.

So that would allow you to catch anything unauthorized, incorrect fees, etc.

What about catching a transaction that you initiated that didn't process? For example, if you wrote a check and it never cleared your account or paid a bill and the transaction got lost in cyberspace.

[feh]

So that would allow you to catch anything unauthorized, incorrect fees, etc.

What about catching a transaction that you initiated that didn't process? For example, if you wrote a check and it never cleared your account or paid a bill and the transaction got lost in cyberspace.

We write very few checks. If it's a large check, I'd notice that it wasn't cashed. If it's a small one (ie. birthday present for a relative), it's not a concern, as it would be a small percentage of our checking account balance.

I have yet to see any electronic payment get "lost".

[disneysteve]

We write very few checks. If it's a large check, I'd notice that it wasn't cashed. If it's a small one (ie. birthday present for a relative), it's not a concern, as it would be a small percentage of our checking account balance.

Re: the small check like a gift, I want to follow up and see if the person never received it or got it and just hasn't cashed it. If they never received it, I want to replace it.

[GoodSteward]

Re: the small check like a gift, I want to follow up and see if the person never received it or got it and just hasn't cashed it. If they never received it, I want to replace it.

This is why I recommend using a ledger of some kind. Digital or checkbook. There are too many little things that can go wrong for me to feel comfortable not keeping a close eye on things.

[disneysteve]

There are too many little things that can go wrong

Exactly, which is why I always have trouble understanding the folks who don't reconcile their accounts and just trust that the bank is always right.

[cypher1]

I use Excel for managing all my accounts with basic formulas to calculate differences, and the compare the activity online for banking/CC accounts.

Since I only write 1-2 personal checks a year and autopay for utilities, my checking account activity isn't much of a concern which I log in maybe once a week. I use my CC for day to day transactions, which I login every other day to check the activity or identify any foreign transactions, and monitor my spending.

[safari]

Every time I use my checking account (write a check, make a deposit, use online bill pay, etc.), I record the transaction amount in the register and calculate the current available balance. As far as reconciling the transactions that have cleared, I do that about once a week by checking my activity history online. It is important for me to know how much money I have in my checking account at any given time to make sure I have enough there to pay a bill or withdraw cash, and whether I need to transfer some money from my savings account. I've been keeping a checkbook register since I opened my first checking account over 20 years ago and I am still doing it the same way. The only difference is that instead of reconciling it once a month when my statement arrives in the mail, I reconcile it about once a week. I am sure there are better ways to do that, but I am a creature of habit and it only takes minutes.

[nadine_doa]

Nah, we don't reconcile our checking accounts.

I read the monthly statement for the household account to see if anything looks out of place. I can also look at that account online.

My business account is online only, so I see that activity every day. Both accounts have high five-figure balances, so there's not much chance of overdrawing.

[scfr]

Just came across this Forbes article. Quote "While banks aggressively market their online banking services and their ability to accept check deposits via smartphone app, they still say that if you want to know your true available funds you have to balance your checkbook."

http://www.forbes.com/sites/laurengensler/2016/07/13/online-bank-account-balance-overdraft-fees/#3b8a4d7115a1

[disneysteve]

Just came across this Forbes article. Quote "While banks aggressively market their online banking services and their ability to accept check deposits via smartphone app, they still say that if you want to know your true available funds you have to balance your checkbook."

Of course you do. That article almost reads like a satirical piece in The Onion.

If you don't keep your own register, you don't know how much is in your account at any given moment. The online balance can't possibly reflect outstanding transactions that it doesn't know about yet.

[rennigade]

My friends who do not balance their checkbooks suck with finances.

My friends who do balance their checkbooks do not suck with finances.

Any questions?

[LivingAlmostLarge]

Probably because it usually correlates that people who care are more conscientious about paying bills and realizing what they spend. Correlates I said though and not causation.

I have friends who balance the check book so they can pay the minimums on every credit cards. I would say they are very conscientious with excellent credit and balance a check book but are in terrible financial shape.

[terri77]

I do, but haven't been able to reconcile it for a couple of year. Thank goodness for Mint.com!