September 2024
Managing your own checking account can be a game-changer in your financial life, but it’s important to handle it wisely. Whether you’re just starting out or have had an account for a while, knowing how to manage it effectively will help you avoid fees, build good habits, and keep your finances on track. Here’s a straightforward guide to help you navigate your checking account like a pro:
1. Understand the Basics
First things first: get familiar with how a checking account works. It’s a bank account where you can deposit money and use a debit card or checks to make payments. The money in your checking account is available for daily use, unlike savings accounts which are meant for long-term savings.
2. Track Your Transactions
Keeping track of your spending and deposits is crucial. Regularly review your account statement or use Waukesha State Bank’s Mobile Banking app to see your account balance and monitor transactions in real-time. This helps you avoid overdrafts and spot any errors or unauthorized charges early.
3. Balance Your Account
Balancing your account means keeping an accurate record of your account balance by accounting for every deposit, withdrawal and fee. You can do this manually in your checkbook or create a spreadsheet to do the math for you. Regularly balancing your account helps you avoid overdrafts and ensures you know exactly how much money you have available.
4. Set a Budget
Creating a budget helps you manage your spending and saving. List out your regular expenses like snacks, outings, or subscriptions, and compare them to your monthly deposits. This will help you see where your money goes and identify areas where you might need to cut back. Sticking to a budget is key to keeping your checking account in good shape.
5. Avoid Overdrafts
An overdraft occurs when you spend more money than you have in your account, which can lead to fees and potential negative impacts on your credit. To avoid overdrafting, keep track of your spending and always maintain a buffer in your account. If it becomes a problem, you could request overdraft protection, but it’s best to manage your spending to avoid relying on these.
6. Use Direct Deposit
If you have a job or receive some type of income, consider setting up direct deposit. This means your paycheck or income will go directly into your checking account, which is faster and more secure than depositing checks manually. Plus, it makes tracking your income easier.
7. Monitor Fees
Be aware of any fees associated with your checking account. Common fees include overdraft fees, monthly maintenance fees, or ATM fees. Understanding these fees can help you avoid them—like choosing ATMs within your bank’s network or maintaining the minimum balance required to avoid maintenance fees.
Luckily for you, Waukesha State Bank’s Student Checking account does not require a minimum balance, have a monthly maintenance fee or charge ATM fees (although, if you visit an ATM not owned by Waukesha State Bank, the owner may charge you a terminal fee).
8. Save for Goals
Even though your checking account is for day-to-day spending, it’s a good practice to save a portion of your money for future goals or emergencies. Consider setting aside a small amount each month to build up an emergency fund or save for something special. You can even set up an automatic transfer, which takes the money from your checking and deposits it into your savings automatically so you don’t have to remember to do it every month. Just make sure you always have enough money in your checking account to cover the transfer, and to record the transfer in your checkbook register.
9. Use Mobile Banking Wisely
Our Mobile Banking app can make managing your account super convenient. Use it to check balances, transfer funds, and pay bills. However, be cautious with your personal information—make sure you’re using a secure network and avoid sharing sensitive details online.
10. Stay Informed
Stay updated on any changes to the bank’s policies or account features. From time to time the bank may update terms and conditions, fees or features of our accounts to better serve our customers. It’s important to read through any notifications you get so you’re aware of any changes that are made.
Managing your checking account doesn’t have to be complicated. By staying organized, keeping track of your spending, and being mindful of fees, you can make the most of your checking account and build strong financial habits for the future.