Topic Summary
Why Are Bank Statements Important?
As young people gain independence, it’s important to know how much money you have, understand your expenses, and keep track of any income. A bank statement displays all transactions (money coming in and going out) and shows your current balance. You can view your bank statements online, through banking apps, or request paper copies.
How to Use Your Bank Statement
- Monitor Bills and Spending: Check both regular and one-off expenses.
- Track Interest: See how much interest you’ve earned.
- Affordability Check: Determine if you can afford a purchase.
- Record Income: Review wages or gifts deposited into your account.
Keeping Track of Finances
Financial independence is built on good money management. Here are some strategies:
- Use budgeting apps.
- Set up text reminders.
- Regularly check your statements and online accounts.
- Create online budget spreadsheets.
- Allocate a fixed amount of spending money each month.
Question
Which of the following is NOT shown on a bank statement?
Discussion
What methods can people use to track their finances?
How it works in real life
Set a savings goal for six months. Establish spending limits on regularly purchased items to help you reach your savings target.