Yahoo Finance

Since 2021, mobile banking has been the most popular way to access a bank account for U.S. adults under the age of 55.

As more and more people adapt to digital banking, traditional practices like checkbook balancing are going the way of cursive handwriting and paper maps: They're rapidly becoming obsolete.

But balancing a checkbook is not a totally lost art yet. For some people, it's still an essential part of their money management practice, synonymous with tracking spending or budgeting. Here’s how to do it.

What does it mean to balance a checkbook?

Balancing a checkbook is the practice of manually calculating your checking account balance after each transaction you make, and then comparing your records to your bank statement to ensure they match.

Checkbook balancing can be tedious, but before the age of online banking and e-statements, it was an essential practice for managing a bank account. Here are some of the key benefits you can still get from balancing a checkbook:

• Reduce your chances of double-spending money or overdrafting while waiting for a check to clear.

• Estimate your day-to-day account balance, even if you don't have easy access to your account.

• Keep a close eye on your spending and improve your chances of sticking to a budget.

Traditionally, balancing a checkbook involved noting transactions in the checkbook register, found in the back of a book of checks. But it can also be done using other methods, including with a simple spreadsheet or sheet of paper.

Read more: What's the average checking account balance?

How to balance a checkbook: Step-by-step instructions

Balancing a checkbook correctly takes time and serious attention to detail. It's easy to make simple errors when calculating your balance, like transposing a number or forgetting to include a bank fee. Here's how to cut back on errors and ensure the best results:

1. Pinpoint your balance

Enter your starting account balance on the first line of your paper or spreadsheet. When looking for this figure in your online account, use the available balance instead of the current balance since it includes purchases you've already initiated.

Read more: Current balance vs. available balance: What's the difference?

2. Note each transaction

Each time there's a transaction tied to the account, use the next available line of your ledger to note the amount and, if desired, details such as the name of the vendor. Be sure to note all transaction types, including:

• Debits: Cash withdrawals, check payments, debit card purchases, pre-authorized automatic payments, ATM fees, transfers to another account

• Credits: Direct deposits, cash deposits, transfers from another account

To help ensure accuracy and to make sure you don't forget anything, try to note transactions down as soon as possible after they take place.

3. Update your balance

Each time you note a transaction, calculate your new balance. Keep in mind that your math won't reflect your available account balance if there's been a charge or a purchase you're not aware of yet.

To avoid overdrafting, you may want to keep a "cushion" in your account or a set amount of money you never plan to spend.

Here’s an example of what your checking account ledger might look like:

4. Check your bank statements

Finally, match up your entries to the transactions shown in your bank statement each month (or more often, if you like). It's normal to find mismatches, but you can use these tips to help you resolve discrepancies:

• Circle or highlight mismatched transactions so you can go back and investigate.

• Look for transactions that may only appear in your bank statement and add them to your balance sheet, such as bank fees or interest earnings.

• Remember that some transactions don't show up on your statement right away, like checks sent by mail.

• Calculate the difference between the two balances and look for a transaction that matches that figure.

If you find unfamiliar or incorrect charges in your bank statement, contact your bank immediately to dispute the charge or take other corrective action.

Read more: What is a bank statement, and how do you read one?

How to balance your checking account using digital tools

Thanks to digital tools like mobile banking apps, you don't have to manually calculate your bank account balance anymore. You can also view your balance in real time instead of waiting to receive a paper statement each month.

For digital tracking, simply log into your bank account after completing a transaction and check to see if the details are correct. If they are, you don't need to take any further action.

Read more: 10 best mobile banking apps of 2025

Frequently asked questions

Does anyone still balance a checkbook?

Checkbook balancing is not popular with younger adults, but some older adults and other groups still balance their checkbooks. The practice is helpful for people with no access to digital banking, and for people with low account balances or limited income who need to closely monitor their balances to avoid overdrafts.

What kinds of mistakes could you find when balancing your checkbook?

Balancing your checkbook can help you find mistakes such as double charges for a purchase, transactions where you were charged the incorrect amount, or purchases you didn't authorize.

Is balancing a checkbook the same as budgeting?

Some people use these terms synonymously, but budgeting is not the same thing as balancing a checkbook. Budgeting involves making a plan for how you'll spend and invest your money, while checkbook balancing involves tracking how much money is available in your bank account.