Checking accounts are an absolute necessity these days. You can either have a checking account or run to
bank or other outlet for money orders. Many people pay for almost everything with a check including groceries, gas, clothes and a long list of other things. When you add an ATM card to this picture, your chances for a potential problem is greatly enhanced.Don't get me wrong. There are many people that can keep their check book up to date, even deducting all of ATM advances and automatic withdrawals as they make them. However, too many people that write checks for everything wind up not entering a check when it is written or an ATM advance when it is made. The result is a bounced check fee of up to $25 for bank and god only knows what store where you wrote check could charge you.
It seems like carrying cash to pay for things isn't "IN" thing to do. When I'm in check out line, most people are paying with a credit card, debit card, or check. I realize that carrying cash has it's risks. You could lose it or have it stolen. What are risks when paying by check? There are absolutely none if you enter each check and properly deduct amount from your account. However, I have counseled people that have as much as $100 per month in overdraft fees. This isn't just for one month. This is an average over a six month period. That is a lot of money that these people couldn't afford.
What's best way to handle my checking account?
If you don't have problems keeping up with your checking account, keep doing what you are doing.
If you occasionally have bounced checks, I recommend that you use your checking account only to pay your monthly bills and use cash for everything else. If you have an ATM card, destroy it.
With that said, I know you will probably not quit writing checks or destroy your ATM card. So let's look at what you need to do to keep up with your checking account.
