Reviewing your bank statements each month can help you track and manage your spending and expenses. Learn what you need to know about bank statements and how to use them to make smarter financial decisions.
A bank statement is a document that summarizes all the transactions that have take place in your bank account over a month. The bank statement records and tracks all your banking activities that way you can monitor the money that is coming in and out of your account.
It is important to review your bank statements so that you can understand your finances and catch issues or wrongful charges on your account. Find out how to obtain and read a bank statement, and why you should review yours every month.
Most banks and financial institutions issue new bank statements every month or every quarter. The statements will get sent to you through email or mail. It can be accessed online at anytime through your online banking account or mobile app. This statement can be downloaded, or you can call your bank to get the information you need regarding your bank statement.
The process will vary depending on your bank, but you can follow the steps below to access your online bank statements:
Reading a bank statement is not difficult but does require you to understand the terms and information that is in the statement and why it matters when it comes to managing your finances.
In general, bank statements include the following information:
Bank statements are important for several reasons. Not only do they help you manage your spending and keep track of your finances, but they serve as a way to catch any mistakes with your account.
Here are the main things you should do with your bank statement:
When you reconcile your bank account, you are reviewing your bank statement to make sure that the information and transactions are correct. Reconciling your account can also help you avoid overdraft fees if your bank statement reveals that you have less money in your account then you thought you had. Contact the bank, credit union or financial institution right away if you see a mistake.
Review your bank statement to check for errors and gauge your spending for the month and keep track of your savings. Notice how much you are spending versus how much you are saving and note where the majority of your money is going.
File it and put it in a safe place for your records. You might need to reference it when you file your tax return.