In last week’s blogger chat the issue of online banking came up. The question was – how has the emergence of online banking affected the way people handle their finances? Personally, I love the ease and access that online banking provides. It allows me to quickly check my spending and update my budget. But another blogger felt that online banking is causing people to become lazy with their finances and that balancing a check book is becoming a lost art. I had to confess – I’ve never balanced my checkbook!
Worse, I’ve never used one of those checkbook register thingys that come with your box of checks. I’m terrible about keeping records so years ago I switched to carbon copy checks – a small price to pay for lazy folks like me. But I still don’t balance a checkbook. Instead I keep a budget spreadsheet that I update several times a week with our spending. Is this the same thing?
In some ways my method goes above and beyond the balance your checkbook routine – I record all our spending either cash, check or credit. The spreadsheet does most of the heavy lifting for me by using that data in a myriad of ways. But there is one crucial step missing in this process – reconciliation. Periodically I check my bank balance against my budget spreadsheet to make sure they agree. Otherwise I’d be in serious trouble if I forgot to note a large purchase or payment I made.
What about you, do you balance your checkbook? If not, do you track your bank balance some other way?
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14 comments:
Nope. I don't balance either. I used to, and I used to use carbon checks. I use a few different methods - I check my online banking daily and would instantly spot a problem, I also track all my finances on mint, and then finally I have my own spreadsheet budget. I do use a check register to jot in what the checks are for, because Mint only says "check" so I go in and change it to what the checks are for, although I have to be honest, I almost never write checks anymore either. Maybe one a month.
Oh yes I do! If you trust the online banking balance is acurate you are likely to screw yourself.
Banks are notorious for delaying charges, having them poted then removed etc etc. Especially if you use your debit/check card.
Don't ever count on that balance as accurate!
I've always been a checkbook balancer. Still am, even with online banking. But sometimes the online statements will throw me off if someone hasn't cashed a check yet.
I think what you do with the spreadsheet is just another form of balancing.
Yes, balancing a checkbook is becoming a lost art - just like using an abacus.
It's still useful and necessary for people who write a lot of checks because you never know how long somebody will hold the check before deposting it or how long it will take to process. But I rarely ever write a check and therefore never balance a checkbook (I keep a running cash flow tally in Excel though and make a note if there is a check in float).
Not balancing a checkbook is lazy only in the sense that not doing calculus by hand is lazy. You could argue that it's a good practice but the fact is that we don't have to do it anymore.
I do- every day! I check my balance, compare it to online, and then check the things that have cleared. I would guess the majority of people don't balance their check book. Scary!
I keep a running total in my head and then check online to see if it's posted. Usually I only write 2-3 checks a month. My debit card is what I use a lot. Once I see it's posted I cross it off my list. I've not gotten in trouble yet, but I try to keep a small buffer in my account just in case.
No way. I don't use my debit card and I write... actually no checks typically from my main checking account (rent is from money market).
Everything goes on the CC, and when I pay it off, all i have to do is make sure I can cover that. And I track my spending, so i always can.
I came back to read all the comments - I have to admit, I am surprised by all the folks that still balance. I should note that I have a credit union and have never had a problem with fees or delayed charges. I also have a budget so I know how much money is spent at anyone time and when my bills are hitting. I track my money very closely, but do I sit down with the register and do classic balancing - nope. Probably never will.
I consider 'balancing your checkbook' keeping track of all the ins and outs to your bank account. Whether you do it with a spreadsheet and notebook or a traditional check register, that's balancing.
@Dawn - I too have a credit union. I finally switched after years with an evil bank. Though so far everything seems to hit immediately and stay put, my experience with a bank has left a bad taste in my mouth. I will never trust tht online balance until I match it up with my reciepts.
@Dawn - the house payment stuff is still all by check, mortgage, taxes and insurance. But that's pretty much it, I use credit or debit most places too. I think i keep pretty good track.
R May - yes banks will juggle your checks and delay payment,that's why you have to keep a buffer in your checking account. I've only bounced two checks in my life, the first was because they put a hold on a check I had deposited a week earlier. The other was last year when my mortgage payment check cleared 1 day after I mailed it! It usually takes a week to clear so I had mailed it in a few days early, oops.
@Rainydaysaver - it seems you are not alone, lots of people still balance their checkbook.
@Meg - ha ha, I barely remember abacuses and I'm in my 30's, I'm sure the 20-somethings are going what??
@Mrs Money - wow I've balanced a checkbook maybe once in my life, I can't imagine doing it every day. But I do update my little spreadsheet several times a week so I guess we're similar, just using different tools.
@Hustler - me too, I usually have a good idea what is in my bank account on any given day. Checks aren't the only payments that sometimes take awhile to post, some debit transactions take a few days.
@SP - we're similar, I put most everything on credit for the rewards and to handle cash flow. I keep a lot of money in online savings for various expenses so I'll charge them and then transfer what I need, but that takes a few days. I'd be screwed if I used debit for everything.
@Dawn - yes it does seem like a lot of people still balance their checkbooks. I'm surprised too. My mortgage is through a credit union but I still use evil B of A for my main checking account. I've had very few problems with them in 14 years as a customer.
@R May - sorry you've had some bad banking experiences, it seems pretty common. Mr M had a problem where an ATM didn't dispense his cash, yet his account was debited. They recredited his account while they investigate and then determined that the transaction was correct and retook the money! He was screwed out of $200 and then bounced a check because the notice that they had taken back the $200 came about 10 days after they had done it. That was with WAMU, now Chase.
Yes; in fact, I have about six of those paper ledgers (I hoard them) in use right now, on my desk, LOL. They are for different accounts, of course. Each one is tracked online but I want to double-check that I have not missed anything and don't overdraw any account. I reconcile the online accounts with the ledgers daily, if necessary. Mr. 444 does the same with his account, but on a spreadsheet. I track his and mine, though, so his accounts are triple-tracked (online, spreadsheet, and my paper ledger.)
Even though I check my account status online every few days, I still think it's imporant to balance my checkbook monthly.
A couple of months ago my mom was slow in depositing a check I had given her and if I only used online banking I would have forgotten about it(the amount was small) and been "surprised" when it cleared.
It's too hard to write small enough in the check register, that they give you. That's my excuse!
John DeFlumeri Jr
Clearwater, Fla.
Banks make a lot of money from overdraft fees. I personally have used a checkbook register for a long time although I know several people who just rely on viewing transactions online. If you like using spreadsheets, take a look at
http://www.georgesbudget.com/
It has checkbook registers and budgeting in one spreadsheet.
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