Most of us open our first checking account by age 20. Unless, of course, your folks played Mozart to you when you were 3 and taught you the stock market by age 7. You're the type that has probably had a checking account since you were, what, 3 months old?



Just because you've had one for years, doesn't mean you know how to manage it, right? I know you. You go on-online, look up your current balance, and tell yourself, "Yup! I've got money to spend!". Then you're somehow shocked when you open the mail and discover that your last check bounced. On top of that, the bank has the audacity to take another $30.00 out of your account for NSF fees. Baby, it don't pay to lose track of how much money is in your checking account!

Pay attention now cause I'm going to show you 8 little secrets that will help you keep more of your money and give less of it to the banks and bad check collectors.

1. Keep Good Records.

What, you thought this would be easy? Surprise! Like everything else in life, you've got to pay attention to the details! You've got to keep track of the check number, when you wrote it, who you wrote it to, and how much it was. If you get paid and put money in the bank, keep track of it. Transferring money from your checking account to pay your credit card? You know what to do. Keep track of it. Stay in touch with your checking account. Write things down. It will help you analyze and understand your bank statement when you get it in the mail later on.

"You have to have something to compare it to in order to know whether it's right or wrong," says Michael Stahl, author of Early to Rise: A Young Person's Guide to Investing.

All checking accounts come with a free paper check register. Learn how to use it. Or use a software program, such as Intuit's Quicken or an online version of your favorite financial program.

The point is keep good records.

2. Don't Ignore Your Mail.

Don't wait to open your bank statement and balance your checking account. If you've been keeping good records, it will be easy.

"Do it right when you get the statement," Stahl says. "Don't wait."

Here's two reasons for doing it right away:

First, you only get 60 days to correct any errors the bank might have made. It's very rare for a bank to make a mistake, but it happens. Wait longer than 60 days, and the bank doesn't have to do anything about it.

Secondly, balancing your checking account right away is just plain easier. The fewer days that have passed between when the bank issues a statement and when you balance against it, the less confusing it is to be in synch between you and your bank.

"It's less confusing and easier to balance your bank statement if you do it as soon as you get it, not three months later," Stahl says.

3. The Quick Once-over

If you're pressed for time, you can get away with examining just the account summary, says Susan Zimmerman of the Zimmerman Financial Group in St. Paul, Minn.

It's usually listed at the top of the page and it recaps the state of your account:

Previous balance

Deposits and credits

Checks and debits

Service charges

Interest paid

Current balance

"At a bare-bones minimum, look over the summary information and see if the figures are in the ball park," Zimmerman says. If you've been keeping good records, you should have a rough sense of what the balance should be. Look for strange charges or missing deposits or unexpected fees.

Remember that very recent account activity may not be reflected on the statement. The bank statement covers a limited period of time, typically 30 days. The bank prints your statement, puts it in the mail, and a few days later it arrives in your mailbox. By that time you may have already written a couple more checks. If you aren't keeping track of your checking account balance yourself, you'll be out of sync with your bank statement. Keep good records!

The quick once over might buy you some time, but the next tip is very important.

4. Spend Quality time With Your Bank Statement.

Scanning's a good first step, but don't stop there.

"Go over the deposits and the checks," says Paula Wegner, vice president of the First Eagle National Bank in Chicago. "Check all checks from your bank statement against your check register. Check off all checks."

Not all bank statements look the same, but they all provide similar information. The statement will show you which checks have cleared the bank or in other words, have been cancelled. You can match up checks by check number, date, and dollar amount. You won't find the payee listed on your statement. Cash and checks deposited into your account will also be listed. So will electronic transfers. Those are the ones to really watch out for. Just make sure that your records match what the bank statement shows.

Take some time to accurately balance your statement to the penny. If there's a problem, see the next step!

5. Call Your Bank Immediately If You Find a Problem.

Financial planner Zimmerman shares an incident she had reconciling her bank statement. She got a notice from her bank saying that her youngest son's checking account was overdrawn by 56 cents. It wasn't much, but it didn't sound right. When Zimmerman called the bank, an officer there told her that the account wasn't in arrears and the bank wasn't sure how she had received the overdrawn notice.

Banks sometimes make mistakes. It happens. For Zimmerman, she was on top of her checking account and acted immediately to fix the discrepancy. Banks appreciate that. They actually want you as a customer and can sometimes bend the rules if you act responsibly and in a timely fashion. For example, Zimmerman recommends that if you bounce a check, and it's the first time, ask for forgiveness including waiver of any fees.

"Lots of people don't realize that the rules can been waived and often a bank will do that for good will," Zimmerman says. Of course, don't expect to get off easy if you are a repeat offender. Knucklehead.

6. Check Daily Balance Summaries.

First Eagle's Wegner says that most people don't need to analyze their daily balance summaries. However, there are exceptions: consumers with interest bearing accounts or those who must maintain a minimum average balance.

People who fall into these categories may want to keep closer tabs on daily balances to make sure their accounts are in compliance or to make sure they are paid the appropriate amount of interest.

7. Pay Attention to Your Account Between Statements

OK, maybe only truly obsessive people review their accounts daily via phone or the Internet. But the occasional peak at your checking account balance between printed statements does sometimes make sense. That's the case when you are expecting an out-of-the-ordinary transaction: Has that big refund from the Internal Revenue Service been deposited yet? Did the check you wrote to Aunt Clair clear yet? Did you forget to write down one of your checks?

Most of these tips don't take much time. And once they become a part of your financial routine, you'll find it's easy maintaining a healthy checking account.

8. Save Some Money For Emergencies

Don't spend every dime you make. Put some away in a savings account so that when those unexpected car repairs crop up you have someplace to go for money. Playing games with you checking account by "floating" checks and hoping a praying the car repairman won't deposit your check until after you get paid is no way to stay out of trouble.

Use some self-discipline and common sense and you won't ever have to deal with overdraft fees and collection agencies.