Managing my money for young adults
Managing my money for young adults

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5 How to check your bank account

A key aspect of financial management is checking your bank account. This is called ‘reconciling’ your account. You should aim to do this at least every two weeks, and even more regularly if you have a large number of transactions flowing through your account.

The reconciliation process has three objectives.

  1. Check that there are no odd or suspicious transactions going through the account. If there are, you need to contact your bank immediately.
  2. Verify your current financial position so that you know exactly how much cash you have at your disposal.
  3. Ensure that you’re keeping your account in credit or, at least, not risking a breach of the overdraft limit your bank permits you to have.

The next video describes the stages involved in reconciling your account, keeping a record of transactions and checking them carefully when your statement arrives. It explains pending items and the importance of knowing the difference been the ‘balance’ and your available funds. Watch it carefully.

Download this video clip.Video player: mmmft_1_video_week1_section5_bankstatement.mp4
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