Do you have a good habit of checking your bank statements regularly? Or would you rather bury your head in the sand and hope for the best?
According to research by Lloyds Bank, only half of Brits (54%) check their bank statements every week, despite 57% of respondents stating that financial wellbeing is more important to them than physical, mental or social wellbeing.
Being aware of the information in your bank statements is critical to staying on top of your personal finances. Yet, so many of us ignore this data. In this blog, we are exploring why it is important to check your bank account and how you can easily add this to your routine.
What Are Bank Statements?
A bank statement is a formal document that summarises your bank account’s activity. Usually, they show the activity over a month, but you can request longer or shorter statements.
Monthly bank statements help you manage your budget, spot fraudulent transactions and track any fees or extra charges applied to your bank account.
They are there to help you stay organised and in the know. Though many of us try to stay on top of spending, it is easy to overspend and your bank statement ensures you know exactly what is going in and out of your account.
No guesswork here! Just accurate figures. Perfect if you are on a strict budget or working towards a savings goal.
How Often Should You Check Your Bank?
In addition to looking at monthly bank statements, you can check your account via online banking to double-check that nothing is amiss.
It is good to check your bank account at least once a week so that if anything is wrong, you can quickly catch it.
Frequent checks also remind you of your spending and make budgeting easier. You will be less likely to spend that extra £10 if you remind yourself of your savings goals! Read more about checking your budget here.
If you experience money anxiety, you may not want to check your bank so often. Over one-third of Brits report financial anxiety, so you are not alone. However, taking control of your finances by monitoring your bank can help address this anxiety, as you will cut down your overspending and be more informed on your personal finances.
What Happens If You Don’t Check Your Bank Statements
Ignoring your bank statements and your account, in general, can lead to overspending and missed fraud transactions or errors. It also keeps you out of touch with your general spending, which increases the chances of disrupting your budget.
In the long term, this can lead to more money stress, as you are not managing your money responsibly and run the risk of spending your savings or accruing debt.
Luckily, these problems can be reversed. Get to grips with the basics of budgeting here. And, if you don’t already, make a habit of checking your bank account today.
Making Time For Financial Wellbeing
It is easy to add bank statements and account checks to your routine.
Your monthly statements are automatically sent to you. When one arrives, check it within the next 24 hours so it is done and ticked off your list. Pick a day of the week for bank account checks and stick to it. This will build a habit and help you stay consistent.
It may seem time consuming to begin with, but after a couple of tries, you will get faster and soon checking your bank statement details will take less than 15 minutes. Easy!
Keep developing your personal finance knowledge today. Read more on the Cash Asap blog.
