Future Business Leaders of America (FBLA) Personal Finance Practice Test

Which of the following practices is essential for managing a checking account?

1. Banking online

2. Regularly updating the register

3. Creating a budget

4. Only using checks

The correct answer is: Regularly updating the register

Regularly updating the register is crucial for managing a checking account because it helps individuals track their spending, monitor their account balance, and stay informed about any fees or charges that could affect their finances. Maintaining an accurate register ensures that a person knows how much money is available for spending, which prevents overdrafts and associated fees. It involves recording all transactions, including deposits, withdrawals, and checks written, providing a clear picture of one's financial position at any given time. While online banking, budgeting, and check usage can support overall financial management, they do not directly address the immediate need to keep accurate records of transactions specific to the checking account. Online banking offers convenience and accessibility, creating a budget is essential for overarching financial health, and relying solely on checks can limit a person's financial options. Keeping a well-maintained register is the foundational practice that facilitates effective checking account management.