Balancing The Budget: A Student's Guide to Personal Finance

So you've chosen the bank. You've done what's necessary to avoid institutions that will hit you with excessive service fees. Unfortunately for already busy students, bank selection is only the first step in staying in control of an account. The game of checking has become increasingly difficult, especially with a bank's ability to tack on fees in ways that were once inconceivable. Luckily, the responsibility of a checking consumer can be made easier with just a few simple steps.

Know the banking statement that comes in the mail once a month? Keep an eye on it, no matter how depressing its information may be. Comparing it to a checkbook ensures that the bank is doing its job.

If the monthly statement is not current enough for your activities, don't neglect the resources that are just a click away. Most banks host free online banking services that may impact spending choices. Also, toll free account services and ATM balance inquiries may be of assistance before stumbling upon the colossal banking mistake: overdrawing.

Big spenders should check to see if their bank offers a cushion for overdrawing, a feature commonly known as overdraft protection. Simply put, if a transaction cannot be cleared through a checking account, money will be automatically deducted from a linked savings account.

Banks without that luxury may be troublesome to students like freshman Kayla Hicks, who suffers a $23 fine each time she overdraws at Washington Mutual.

"The checking card is easier to use," she remarked. "But at the same time most people forget to keep track of the purchases made with the card and tend to overspend."

Some students see the use of a check card as more reliable, convenient and safe than carrying around blank checks. Those who prefer the paper option, though, will find that checkbooks with carbon copies make organizing funds much easier than bookkeeping.

It is not a bad idea either to acclimate yourself to using a checkbook, no matter which banking method you prefer. Just a few steps assure that the process is not as difficult as it's portrayed:

Check your monthly statement against your check register and check off each item

Record any fees or bank charges that might not have been accounted for

Record outside payments (i.e. health insurance, etc.)

Record outside deposits if applicable (i.e. direct deposit, etc.)

Determine and record monthly interest

Find items not "checked off" from the first step and total them

Subtract the previous total from the closing bank statement for a "new balance"

Total deposits you've made but haven't recorded and add them to the new balance

Compare the previous total to the check register and pray that the numbers match

Keeping the books is a chore in and of itself that can't be accomplished without holding transactions in line. Record debit card transactions at the time of the purchase. Consider buying outside checks rather than the usually costly boxes that the bank provides (and automatically subtracts from the account). Frequently withdraw cash that should cover weekly personal expenses.

It is crucial to be vigilant with putting money into the bank as well. Although depositing checks by ATM may seem very convenient, be advised that the cutoff times for checks at automatic tellers are usually much shorter than the typical deposits. Another trap to watch out for when depositing are bank holds that are allowed by law. These holds prevent your deposited check from clearing for a few days. Examine your provider's policy on bank holdings, as they will not remind you when they plan on "sitting on" your check for a few days.