Check Writing Tips
If you just got your first checking account, learning how to write checks is something you need to learn how to do immediately. A checking account allows you to write formal notes, complete with your banking information, that a banks accepts as your intention to pay a person or institution money from your account.
The business or person you wrote the check to then sends that piece of paper to your bank, which reimburses them the amount of the check, or credits that amount of currency to their account, while removing the same amount from your checking account. This is called a cash transfer.
Writing checks, instead of paying cash, allows you to avoid carrying a wad of cash with you at all times. This means you aren't as likely to drop money that's going to be scooped up. Something taking your checkbook is also a danger, but less people are going to find your checkbook and try to write checks under your name, than are going to find money on the ground and pocket it.
Losing Your Check Book
At the same time, losing your checkbook can be dangerous, because it gives a person the opportunity to spend all the money from your checking account, or even write hot checks under your name. Whenever you lose your checkbook, contact your bank immediately to let them know to stop payment on checks and freeze your account. This protects you from damage down through check fraud.
This isn't to alarm you. Checking is often a better option than credit cards, because businesses go through more security procedures with checks (drivers license check, etc), than with credit cards. Also, people writing checks are less likely to go over their spending limits than people with credit cards, which means you are less likely to be paying big fees for a few minutes indiscretion.
With all that in mind, here's step-by-step guide for how to write checks.
Today's Date
The top line of the check, found in the right top corner of the check, is where you write the date. The short form is perfectly acceptable. So if it's March 3rd, 2010, write down 4/3/2010 in the box. 4/3/10 is also acceptable.
"Pay to the Order Of"
The first thing you'll notice, when looking at an empty check, is the line that starts with "PAY TO THE ORDER OF". This is where you write the name of person, business or organization you are paying money to.
If you are buying a pizza from Pizza Hut, print "Pizza Hut" on this line. If you're making a donation to the Salvation Army, you write "Salvation Army" on this line. If you are paying your mother back for bailing you out of jail, write your mother's name on this line.
In case you aren't sure what to print on this line, ask the person you are handing the check "Who should I make this out to," and the person will let you know. Some businesses and government offices have a rubber stamp that they like to stamp on the line: if they do this, it's okay.
"$ Box"
Next to the payment line, you'll see a box with a dollar sign in front of it. This is where you write the numerical equivalent of the amount of money you're paying. If you owe $20, then write "20.00" in the box. Since the dollar sign is already added, this isn't necessary. It is necessary to add the cents, which are placed behind the decimal point.
So if you own $35 and 50 cents, you write "35.50" in the dollar box.
Printed Number Line
A written check also requires you to write out the amount of money you're handing over with the check. This might seem repetitive, since you just wrote down the number amount, but it's a good thing. Writing out the dollar amount means there's never confusion as to exactly how much you are paying.
Print out the number amount. In the case of "35.50", print out "Thirty-five dollars & 50/100". If you were paying $420.00, print out "Four-hundred & twenty dollars & 00/100".
There's something to keep in mind, though. In the example above, a dishonest person could take your check and add a number before your $35.50. Suddenly, 35.35 become $735.50. If that person has enough room to write in the words "Seven-hundred &" on the dollars line, they can fool the bank into thinking you wrote a check for $735 and change.
So when you start to print out the dollar amount on the "DOLLARS" line, start writing as far to the left as possible on the underline, giving no one room to alter your check. If there's no room to write, it's going to look suspicious to the bank, when they are asked to cash that check.
Also, you don't want someone adding anything at the end of your dollar amount or marking out your writing and adding a second dollar total. So when you finish writing out the money amount, draw a straight line throughout the remainder of the dollar line, so anything written is going to have a line through it, and therefore look suspicious. Marking out and writing is going to look suspicious, but you don't want anyone getting any ideas.
Your Signature
On the bottom right line of the check, sign your name. This is your signed approval for the bank to cash your check.
Signing your check is important, because this shows to your bank that you okay the removal of funds from your account. When you sign your name, this should be the only place on the check where you write in cursive, instead of printing the words. Once again, cursive signatures are harder to copy than printing, so your bank might want to compare the signature on the check to signatures you have on file, in case there is something that seems to be amiss with the person cashing the check.
"Memo" or "For"
On the bottom left line of the check, you print what the check is for. This is more for your own notes, if you have trouble remembering later why you wrote this check. Common memos on this line are "groceries", "electric bill", "utilities", "car payment" or "rent". Once again, this note is for your own memory, so write what you think will tip you off later, when trying to remember.
Balancing Your Check Book
Once you have written the check, you aren't completely through. You'll want to keep track of the checks you've written and "balance your check book". Balancing a check book means you keep track of the money in your checking account, along with every expenditure, so you always have enough money in your account to cover your checks.
If you write checks for more than the money in your account, you are "overdrawn". The bank has overdraft fees for each overdrawn check. $25 is a common surcharge. You don't want to go down this path, because even four bounced checks means $100 in extra fees you would otherwise be able to pay for something productive or entertaining.
People who are bouncing checks probably aren't going to have a lot of excess cash to cover bank surcharges, so balance your checkbook and make sure you aren't bouncing checks.
So when you write a check, write down in the back of your checkbook how much you wrote the check for. This lets you periodically sit down at the kitchen table, add up your check expenditures and balance your check book.
Writing Checks
Filling out checks with the right money amounts, notes and signatures is only half of what you need to know when learning how to write checks. But keeping a checkbook handy and writing checks is often more convenient than keeping cash on hand, and doesn't carry with it the interest rates of a credit card. So learn how to write checks and pay directly from your checking account.