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I never understood the American English term "balancing the checkbook." Is that simply keeping track of how much you're earning and spending and making sure the

by jarek 15y ago

I never understood the American English term "balancing the checkbook." Is that simply keeping track of how much you're earning and spending and making sure the former is higher, or is there more to this skill? edit: thanks all!

nfriedly 15y ago
It's that plus comparing what you wrote down to the bank statement at the end of the month to make sure that you didn't make any mistakes (and make sure the bank didn't either.)
hnal943 15y ago
The term comes from a paper process. Traditionally, balancing the checkbook was the act of reconciling your personal record of the checks you wrote (your "check register") against the statement the bank gave you at the end of the month, giving you a chance to correct errors on either side. It is used in a more general context to mean keeping a budget, as someone who would check the bank's work and make sure their own accounting matched to the penny presumably is doing so to ensure he is living within his means.
roc 15y ago
That's basically it. There is/was a small ledger in the front of most American checkbooks where you (ideally) log the deposits into your checking account and the checks that you wrote and calculate the balance after each transaction. Some people integrated their budget explicitly, logging 'transactions' to represent future/monthly obligations, savings targets and the like, but that wasn't at all common IME. Practically speaking, this was a more necessary skill back in the days before direct deposit and debit cards. When a check might 'float', having been written but not cashed, for days or weeks until the recipient cashed it and the bank that accepted the check worked out the transaction with your own bank. Nowadays what people mean by the term is simply the discipline and wherewithal to understand how much money you have in your account, what your obligations are and what you can safely spend.

by jarek 15y ago

nfriedly 15y ago

It's that plus comparing what you wrote down to the bank statement at the end of the month to make sure that you didn't make any mistakes (and make sure the bank didn't either.)

hnal943 15y ago

The term comes from a paper process. Traditionally, balancing the checkbook was the act of reconciling your personal record of the checks you wrote (your "check register") against the statement the bank gave you at the end of the month, giving you a chance to correct errors on either side. It is used in a more general context to mean keeping a budget, as someone who would check the bank's work and make sure their own accounting matched to the penny presumably is doing so to ensure he is living within his means.

roc 15y ago

That's basically it. There is/was a small ledger in the front of most American checkbooks where you (ideally) log the deposits into your checking account and the checks that you wrote and calculate the balance after each transaction. Some people integrated their budget explicitly, logging 'transactions' to represent future/monthly obligations, savings targets and the like, but that wasn't at all common IME. Practically speaking, this was a more necessary skill back in the days before direct deposit and debit cards. When a check might 'float', having been written but not cashed, for days or weeks until the recipient cashed it and the bank that accepted the check worked out the transaction with your own bank. Nowadays what people mean by the term is simply the discipline and wherewithal to understand how much money you have in your account, what your obligations are and what you can safely spend.