How to Balance an Account Register

Video Transcript

"Hi, this is Doug Benson on behalf of Expert Village. I'm going to show you how to balance your checkbook and as a result become a better manager of household finances. Each day you should carry your finances register with you whether or not you write checks. With each check you write ATM or debit card purchase make an entry on your transaction register. Here are a couple of examples after depositing my paycheck of $850.00 I went to the grocery store and spent $43.29. I entered the number of the check I used, todays date and $43.29 in the payment column. Next it's very important to bring down the new balance of $806.71, I subtract from my $850.00 paycheck and that provides me with a new balance. After visiting a second market and putting gas in my car I enter those two transactions and left me with $767.96. Later I stopped at an ATM and took out $20.00 spending money the ATM receipt showed that I was charged $1.00 for this transaction so I entered $21.00 in the transaction register. That was $20.00 for the withdraw and $1.00 for the ATM fee. In this example I'm now left with $746.96 keeping your transaction register up to date will help you keep track of where your money goes and help you make good decisions about future transactions. Watch my next segment as we continue to learn more about balancing your checkbook and becoming a better manager of household finances."