Your bank statement is a monthly report card for your money. Learning to read it helps you catch errors, spot fraud, and understand your spending.
Key Sections of Your Statement
Account Summary
| Term | What It Means |
|---|---|
| Beginning Balance | What you started the month with |
| Deposits/Credits | Money that came IN |
| Withdrawals/Debits | Money that went OUT |
| Ending Balance | What you have now |
Transaction List
Every purchase, deposit, and fee listed by date. Each shows:
- Date of transaction
- Description (merchant name or source)
- Amount (positive = in, negative = out)
Red Flags to Watch For
Watch Out
Review your statement monthly. You typically have 60 days to dispute fraudulent charges.
Look for:
- Charges you don't recognize
- Duplicate charges
- Subscriptions you forgot about
- Fees you didn't expect
Real Example
"I found a $9.99 charge from a streaming service I canceled 6 months ago. One phone call got me a $60 refund."
Common Fees to Watch
| Fee Type | Typical Amount | How to Avoid |
|---|---|---|
| Monthly maintenance | $5-15 | Meet minimum balance or use direct deposit |
| Overdraft | $25-35 | Opt out of overdraft protection |
| ATM (out of network) | $2-5 | Use your bank's ATMs |
| Paper statement | $2-5 | Switch to electronic |
Setting Up Alerts
Do This
Most banking apps let you set up alerts for:
- Low balance warnings
- Large transactions
- Any transaction over a certain amount
- When direct deposits arrive
Quick Win
Right now, open your banking app and set up a low balance alert. Pick an amount that gives you a buffer before overdrafting.