Money Management Tools

How Your Statement Works

Seldom will your statement and checkbook register agree. But, that is no reason to panic. It’s merely a matter of timing. Your statement lists the transactions that have posted to or cleared your account during that month. It takes a few days after month end for the statement to be printed and for it to arrive in the mail. Meanwhile, you are continuing to use your debit card, write checks, make ATM withdrawals and/or deposits, and hopefully, keeping track of these transactions in your checkbook register. Remember, it also takes a few days for your debit card transactions, checks, and/or deposit transactions to be recorded on your account.

Record, Balance, Repeat

Recording each transaction in your checkbook register and adding or subtracting it from the balance is the first step to simplifying the balancing act. It's important to record the transaction at the time you actually swipe your card, write the check, make a withdrawal, or make a deposit. By recording the transactions and balancing your account total in your checkbook register, you'll get a clearer picture of your spending habits and know exactly how much money you have. And, if for some reason you detect a problem, the sooner you can correct it, the better.

The Balancing Act

Balancing your checkbook each month within a day or two of receiving your statement will not only reduce your stress level, it will lessen the amount of time it takes to complete the task.
On the back of your monthly statement is a handy form to help you balance. Use it along with the following steps to make balancing a snap. Note: If you are enrolled in eStatements, log in to retrieve your statement and click “View Back of Statement”.

Before you begin, gather the following:

• Your last two statements
• Your checkbook and register
• Any Debit/ATM Card Receipts that you did not record in your checkbook register
• A pencil
• A calculator

1. Record Interest Earned
   • In your checkbook register, enter the interest earned on your account (if applicable). The interest paid will appear at the top right on the front of your statement.
   • Add this to the balance you have in your checkbook. Be sure to record any other credit amounts listed, such as direct deposits.
2. Record Service Charges, etc.
   • In your checkbook register, record any charges that have been subtracted from your account, as shown on your statement. These charges may include monthly services charges, ATM transaction charges, Overdraft or Returned Item fees
3. Verify Deposit Amounts
   • Look at your latest statement and verify that all deposits listed match the deposit amounts listed in your checkbook register.
   • Make a list of any deposits that are listed in your register but do not appear on your statement. Add these together.
   • Tip: Use the worksheet on the back of your statement. If you are enrolled in eStatements, log in to retrieve your statement and click “View Back of Statement”.
4. Match All Transactions
   • Match the entries in your register with the transactions listed on your statement. Compare the details of each transaction. If these items match, place a check “✓” mark next to the transaction in both your register and on the statement. If they don’t match, circle the item in both places so that you can come back to fix the error once all of the transactions have been checked off. Remember, some items will not be checked off. These are called “Outstanding Items” and we will deal with them later.
   • If transactions don’t match check for one of two errors:
     1. The item was recorded incorrectly in your checkbook register
     2. The item was paid or credited to your account for the wrong amount
   • To correct the errors
     1. Simply look at your check images and any receipts
5. Check for Outstanding Items from Previous Statements
   • Be sure that all of the outstanding items from your previous statements have been included in this statement. Otherwise, they are still outstanding.
   • Note: If an item is outstanding for 60 days or more, contact the person or company you are paying and see if they have received or initiated your payment.
6. List All Outstanding Items
   • Make a list of all outstanding items. These are transactions that appear in your checkbook register that do not have a checkmark next to them. Add these items together.
   • Tip: Use the worksheet on the back of your statement. If you are enrolled in eStatements, log in to retrieve your statement and click “View Back of Statement”.
7. Balance
   • Now, balance your checkbook register to your statement. Use the formula below, which is also located on the worksheet on the back of your statement.
     

     Statement Ending Balance
     ADD (+) Deposits Shown in Checkbook Register But Not on Statement
     Subtotal
     MINUS (‐) Total Outstanding Checks
     Total	$

   • Compare this total with the ending balance in your checkbook register. They should be the same. If not, there’s a mistake. Do Not Panic! This can be easily fixed. If they are the same Congratulations! You’ve successfully balanced your checkbook.

If Things Don’t Add Up

• Start by re‐verifying your outstanding items.
• What’s the difference? Is your checkbook balance higher or lower than your statement? Subtract the
  smaller figure from the larger one to get the difference. Now…
  • Divide the difference by 9. If 9 goes in evenly (with nothing left over), the problem is transposed
    numbers. For example, $258 was recorded as $285. Go back and double‐check your amounts.
  • Divide the difference by 2. If the answer you get is a “normal” dollar amount (i.e., $7.19 rather than
    $15.125), look for that amount in your register, it was added instead of subtracted, or vice versa.

Still Doesn’t Balance?

Well, you’ve tried hard and made every effort. Now it’s time to ask for help. Call or come by one of our
branches. You will need to bring in your current statement and your checkbook register. Every effort will be made to assist you to balance and next time it will be easier.

1. Using the Budget Planning Worksheet, fill in the estimated dollar amount that you spend on monthly
   expenses in the column labeled Current Spending. Use the blank lines to describe additional expenses
   that are not already on the list.
2. Add the total of all of your Current Monthly Expenses in the Total Monthly Expenses row in the
   Current Spending column.
3. Calculate your monthly net income and insert it into the Income 1 field in the Current Spending
   column. To calculate your net income, take your income after taxes and other withholdings, like 401k,
   are deducted. If you have more than one income, use the Income 2 and/or Other Income fields.
4. Add the total of all of your Net Monthly Incomes in the Total Monthly Income row in the Current
   Spending column.
5. Subtract Total Monthly Expenses from Total Monthly Income as shown below and fill that in the
   Difference Between Income and Expenses.
   • Total Monthly Income – Total Monthly Expenses =
     • If the number is positive, then you are living within your budget and should consider
       investing the “excess” money in a savings account, other investment option, or payoff
       other outstanding debts.
     • If the number is negative, then you are spending more than your income allows.
6. Review each row in your Monthly Expenses and determine if you can save additional money by
   reducing certain expenses. Fill these reductions in the Necessary Changes column. You may be
   surprised by just how much money you find without adding any new income.
7. Write the new values for your Monthly Expenses in the Planned Budget column and calculate your
   new planned budget.
8. Your Planned Budget represents your goal for next month. Monitor your expenses and at the end of the month compare them with your budget. Make modifications to your budget as necessary.

1. Create a Budget and Stick With It. Your budget should include all of your current expenses. View this PDF for help in creating a budget.
2. Don’t Borrow Additional Money to Pay off Debts or Bills.
3. Cut Expenses. You can determine where you can cut expenses by Creating an Effective Personal Budget. This budget planning tool will help you to analyze your budget and determine where reductions can be made (e.g., eating out, buying snacks and lunch at work, going to the movies, etc.). Once you have determined how much you plan to cut, use this “found” money to pay down the balances on your debts.
4. Optimize Your Monthly Payment.  Pay the maximum amount towards your highest interest rate debts. Pay the minimum amount on all other debts.
5. Ask for Reduced Interest Rates. Some creditors, especially credit card companies, will reduce your interest rates if you just call and ask. If you receive offers for other credits cards with lower interest rates in the mail, use those offers as leverage when you are re‐negotiating your rates with your current creditors.
6. Set Goals and Priorities. Determine what’s important. When you prepare to buy something ask yourself if this purchase is in line with the priorities you have set and will it help you reach your goal or delay it.
7. Check out our Calculators. 
   
   Calculators

1. Calculate your Net Income.
   • Know all your sources of income after deductions, like income taxes and 401k, are removed. This number ultimately determines what you can spend each month.
2. Create a Personal Budget.
   • A budget is your roadmap for spending and is a tool to help you achieve your financial goals. Having a budget will allow you to control your money rather than your money controlling you. 
     
     Get Help Creating a Budget
3. Balance your Checkbook.
   • The balance in your checkbook is a critical number in money management because it allows you to know exactly how much money currently you have to save or spend. Keeping an accurate checkbook register also allows you to review where you spend your money. 
     
     Get Help Balancing Your Checkbook
4. Minimize your Use of Credit Cards.
   • Millions of Americans are in debt. Credit card debt is an easy trap to fall into. The best way to avoid this trap is to avoid using credit cards altogether. If you like the convenience of a credit card, consider getting a debit card instead. Our debit cards are issued by MasterCard© and are accepted at most places that accept credit cards. The difference is that the expense is automatically deducted from your checking account balance, which reduces your urge to spend more than you have. Be sure to track each debit card transaction in your checkbook register, just like you would if you wrote a check.
5. Pay Down Your Debt.
   • If you have Credit Card debt or other debts, pay the maximum to your highest interest rate debts first and the minimum on lower interest debts to pay debts faster.
6. Establish Savings.
   • Pay yourself, first. When you pay your monthly bills, write a check to yourself and put it in your savings
     accounts. If you get your paycheck directly deposited, ask your employer about having a portion of your
     paycheck deposited to your savings account.
7. Know Your Credit History.
   • Credit reporting agencies collect data regarding your credit repayment history. If your report shows that you are late paying bills, have maximized lines of credit, or have bankruptcies or other collection activities, this will negatively impact your ability to get credit.
     
     Want an overview of your credit score and the things that could possibly affect it?
     
     Credit Karma Nerd Wallet

1. Pay Yourself First.
   • When you pay your monthly bills, write a check to yourself and put it in your savings accounts. If you get your paycheck directly deposited, ask your employer about having a portion of your paycheck deposited to your savings account.
2. Don’t Borrow Additional Money to Pay off Debts or Bills.
3. Cut Expenses.
   • You can determine where you can cut expenses by Creating an Effective Personal Budget. This budget planning tool will help you to analyze your budget and determine where reductions can be made (e.g., eating out, buying snacks and lunch at work, going to the movies, etc.). Once you have determined how much you plan to cut, use this “found” money to pay down the balances on your debts.
4. Optimize Your Monthly Payment.
   • Pay the maximum amount towards your highest interest rate debts. Pay the minimum amount on all other debts.
5. Ask for Reduced Interest Rates.
   • Some creditors, especially credit card companies, will reduce your interest rates if you just call and ask. If you receive offers for other credits cards with lower interest rates in the mail, use those offers as leverage when you are re‐negotiating your rates with your current creditors.
6. Set Goals and Priorities.
   • Determine what’s important. When you prepare to buy something ask yourself if this purchase is in line with the priorities you have set and will it help you reach your goal or delay it.
7. Check out our Calculators.
   
   Calculators

For more information on effective money management, check out the websites listed below.