Why Your Checkbook Register is Your Friend

Yesterday, I challenged you to take a few minutes to play my Checkbook Register Game. Did it fail to challenge you, or did it reveal deficiencies in your ability to notice small, yet significant errors? I realize that we all come from different walks of life. Therefore, it’s probable that some of us have learned how to record our transactions in the register differently than others, and that's fine.The point is that we should all be tracking our finances and the checkbook register is a good way to do that.

As a finance professional, I have to tell you I'm often surprised by how many people no longer make good use of checkbook registers. I can't tell you how many times I've engaged in personal finance consultations with potential clients who have no idea what a checkbook register is or how to record transactions in it. Are you one of them?

Let me just say that I don't have any qualms with people choosing to track their financial transactions via Excel spreadsheets, Quicken, Microsoft Money, or other financial software. However, I do have a problem with people justifying their decision to discard their checkbook registers by claiming that their online banking system sufficiently tracks their financial movements for them. That is a no-no!

Ladies and gentlemen, please understand that:

1. Banks aren't perfect; computer glitches do occur and your account could very well reflect such from time to time.
2. Online banking should be used for reconciling your checkbook register, not to replace it.
3. Using your checkbook register to record purchases and deposits as they occur will keep you on target with your short and long term financial goals.
4. If you use the register to properly and consistently record transactions, you won't forget about transactions that you have made but haven't yet posted to your account online, and you will avoid overdrawing your account. 
5. You should be your first and very best bookkeeper. No one cares about your money more than you so trust yourself to track your transactions before you depend on others to do it for you.

What do you think? Is the use of the checkbook register outdated and unnecessary?