Checking accounts are one of the simplest forms of bank accounts for money management. Usually, checking accounts are main source of personal financial activity. Amidst debt management, making sure your accounts are properly managed is important, too. So, here are some tips for managing your checking account. Here are the key steps to managing your checking account.
Tips For Managing Your Checking Account
Here are six tips for managing your checking account.
- Know the balance – Be sure to use the bank’s phone app, online banking login, or take a trip to the ATM weekly to ensure you are always aware of the balance in your checking account.
- Direct deposit – Utilize automation and set up direct deposit so your paycheck is immediately accessible in your account. Explore automatic bill pay through your checking account as well to ensure there are no missed payments.
- Overdraft protection – It is usually best to opt out of overdraft protection. With overdraft protection, banks will cover the charge, usually up to a certain amount, so the transaction is not declined. This type of protection comes with a hefty fee (which can make it harder to pay off debt). If a person with overdraft protection has $3 in their checking account and writes a check for $6, the bank will cover the $3 difference but charge an overdraft fee that could be as high as $25 or more.
- Online alerts – Set up online alerts for when your account reaches a certain amount. These alerts will help you avoid over drafting.
- Balance checkbook – Balancing your checkbook helps ensure your checking account balance matches your records. Be sure to record all dates and the amount that was deposited or withdrawn.
- Bank ATMs – Avoid using out of network ATMs, so you don’t get stuck paying withdrawal fees.
Keep in mind, checking accounts are not the only type of bank account you should have. Savings accounts are important too! There are several different types of bank accounts that you may want to open as you grow your wealth and become more mature financially.
If you’re struggling to pay off debt, ACCC can help. Schedule a free credit counseling session with us today.