Why Do You Balance a Checkbook?

Balancing a checkbook means you've recorded all additions (deposits) made to your account and subtractions (withdrawals). Each deposit and withdrawal is called a transaction. The purpose for balancing a checkbook is to know how much actual money you have in your checking account at any given time.

Do you really need to balance your checkbook?

Balancing your checkbook will help you make sure you have enough money in your account to cover all of your withdrawals and payments. It's a way to have peace of mind knowing that your check won't bounce or your debit card won't be declined next time you're at the checkout line.

Why is it important to balance a checkbook?

Balancing your checkbook is a method of verifying that your records (your checkbook register) match the bank's records, as shown on your monthly bank statement. This can be important for defending against financial fraud. ... 1 If you don't balance your checkbook monthly, you might not even find the error in 60 days.