is any transaction in which you add money to your account (i.e. when your paycheck is electronically deposited into your account, when you add the birthday money you received to your account, etc.).
is any transaction in which you reduce money in your account (i.e. use funds from the account to pay for rent, take cash out of your account to make small purchases, etc.).
It is important to keep a record of your Deposits into your account (+) and Withdrawals from your account (-) so that you know if you have enough money left in your account for your next Withdrawal. Doing so will also help you to find mistakes and discrepancies in your account that you would have missed otherwise.
A Checkbook Register
is a balance sheet stored in your Checkbook which allows you to keep track of your Deposits and Withdrawals so that you know what your account balance is before you make your next Withdrawal. This will minimize your chances of making Withdrawals in excess of your account balance. This is called Overdrafting
and it can cause you to be charged Overdraft Fees
Below is a sample Checkbook Register which has been balanced in blue.
At the end of each month, your savings institution will provide you with your monthly Checking Account Statement which lists all Deposits, Withdrawals, fees charged, and interest earned during the most recent month. If you have balanced your Checkbook correctly throughout the month, then your Checkbook balance and your Checking Account Statement balance should match.