Holding Checks

[Hezzy04]

What do you think balancing your checkbook means?

Balancing your checkbook means you can reconcile the amount in your account per the bank and the amount in your account per your records. For example:

You have $1K in your bank account per the website, you have $700 in your checkbook. You know that there are $300 in outstanding checks. $1K - $300 = $700.

I must not be understanding. If you are balancing your checkbook, you are subtracting outstanding checks/debits and adding outstanding deposits to what the bank says you have and that should always match to the penny.

That is what I do. My checkbook always shows my true balance. However, when I go look at my bank account, it shows the wrong amount, since the check hasn’t been cashed yet. These two things don’t match up. I always know what it is truely available to me (because it’s what my checkbook shows) but it bothers me when they don’t match.

I get what everyone else is saying. Since I balance my checkbook I do know what is available to me to spend. I just like when it all matches up.

 

[bluezy]

That is what I do. My checkbook always shows my true balance. However, when I go look at my bank account, it shows the wrong amount, since the check hasn’t been cashed yet. These two things don’t match up. I always know what it is truely available to me (because it’s what my checkbook shows) but it bothers me when they don’t match.

I get what everyone else is saying. Since I balance my checkbook I do know what is available to me to spend. I just like when it all matches up.

Do they ever match??? I can't think of any time in the last 15-20 years that my online balance and my "checkbook" balances could ever have matched. Between checks that haven't cleared (and we only write *maybe* 8 checks in a month) and online payments that have been scheduled but not yet disbursed, there's just no way the two balances will ever match (at least for us). That's why I quit keeping a running dollar total in my checkbook and just keep a list of checks, online payments, deposits, etc. in the check book ledger and I make a notation when each of those clears the account. We have a budget and I know how much money from each pay check has to go in the checking account to cover expenses. We always keep a buffer amount in there as well. I usually keep an eye on our bank accounts at least once a week to watch for fraud, so I do a quick mental balance check at that time by looking at the online balance and subtracting any outstanding checks as well as the balance of online payments scheduled but not yet paid (which my bank keeps a nice total of). I don't do it to the penny, but I can get a ballpark figure. I'd drive myself nuts if I was constantly trying to match the two balances because it's impossible...unless we don't write more than a few checks and the recipients cash the checks promptly...and we don't schedule online bill payments weeks in advance. I can't wait for the day when I don't have to write checks anymore and can do *everything* online.

 

[Hezzy04]

Do they ever match??? I can't think of any time in the last 15-20 years that my online balance and my "checkbook" balances could ever have matched. Between checks that haven't cleared (and we only write *maybe* 8 checks in a month) and online payments that have been scheduled but not yet disbursed, there's just no way the two balances will ever match (at least for us). That's why I quit keeping a running dollar total in my checkbook and just keep a list of checks, online payments, deposits, etc. in the check book ledger and I make a notation when each of those clears the account. We have a budget and I know how much money from each pay check has to go in the checking account to cover expenses. We always keep a buffer amount in there as well. I usually keep an eye on our bank accounts at least once a week to watch for fraud, so I do a quick mental balance check at that time by looking at the online balance and subtracting any outstanding checks as well as the balance of online payments scheduled but not yet paid (which my bank keeps a nice total of). I don't do it to the penny, but I can get a ballpark figure. I'd drive myself nuts if I was constantly trying to match the two balances because it's impossible...unless we don't write more than a few checks and the recipients cash the checks promptly...and we don't schedule online bill payments weeks in advance. I can't wait for the day when I don't have to write checks anymore and can do *everything* online.

Mine does usually match. On occasion it doesn’t....but since I rarely write checks, and make basically all payments on a credit card - to get rewards (which I then pay directly from my checking account....but it leaves the account immediately) it means it does match for me a lot.

I know it doesn’t matter, as long as I know what I have....but after so long I tend to worry about the check being lost or something else possibly. In my case, it just bothers me.

 

[bluezy]

Mine does usually match. On occasion it doesn’t....but since I rarely write checks, and make basically all payments on a credit card - to get rewards (which I then pay directly from my checking account....but it leaves the account immediately) it means it does match for me a lot.

I know it doesn’t matter, as long as I know what I have....but after so long I tend to worry about the check being lost or something else possibly. In my case, it just bothers me.

I guess maybe I'm the oddball then. We pay everything we can with our Disney Visa but I still have 5 or 6 other monthly payments that are made online because they don't accept credit card payments (like the mortgage); are other credit cards (department stores with rewards); or utilities that charge a surcharge if you pay by credit card. And we write checks to our church, various private music instructors, fundraisers, etc. on a weekly or monthly basis (and one of the music instructors only cashes checks once a month) so there is just no way that our balances will ever match without reconciling the numbers. But that's ok.

 

[tvguy]

That is what I do. My checkbook always shows my true balance. However, when I go look at my bank account, it shows the wrong amount, since the check hasn’t been cashed yet. These two things don’t match up. I always know what it is truely available to me (because it’s what my checkbook shows) but it bothers me when they don’t match.

I get what everyone else is saying. Since I balance my checkbook I do know what is available to me to spend. I just like when it all matches up.

Well, maybe we have a semantics issue. But is you are balancing your checking account properly, your checkbook and bank statement will balance to the penny. Because, when you balance your check book, you subtract from what the bank statement says, any checks or other withdrawals that have not cleared the bank yet, and add in any deposits/interest that have now cleared the bank. That is why they call it balancing a checkbook. Because when you are done, the two numbers will be identical, unless you, or the bank have made an error. https://www.nerdwallet.com/blog/banking/how-to-balance-a-checkbook/

 

[Kellydelly]

I also have to write checks to the dance studio for my daughter's dance classes, they charge extra if you want to use your cc. Then they take forever to deposit my checks. It's a little annoying.