By understanding how checks work, you can avoid overdraft fees.
People who get into financial trouble because of how much they charge on their credit cards get a lot of attention, but that's not the only problem most people have. For example, checking accounts can also be a problem, especially if you don't understand how they work. So, before you use your checking account a lot, you should learn how it works.
Your checking account is just another bank account, but it is usually not the same as your savings account and is not linked to it. People often find it useful to have both a checking account and a savings account. This is because a savings account gives you interest on your money, while a checking account gives you more freedom over when and how you can withdraw your money.
It's true that when you write a check, the money won't be taken out of your account right away. But trying to get around the system by writing checks before you have money in your account is a good way to end up with checks that don't clear. This is why it's important to keep a detailed chequebook so that you always know how much money is in your checking account.
Also, keep in mind that most of the time, when you use a debit or check card, the money will be taken out of your account right away. So, you should make sure to add up these transactions in your chequebook just like you would any other transaction.
You should also keep some extra money in your checking account. If you have an extra $200, you'll be able to handle things if something unexpected comes up. For example, if you have an emergency and need to spend money right away, the extra cash in your account will help. This is also helpful if it is late and you are waiting for money to be put into your account.
