Reading a bank statement might seem confusing at first, especially with all those numbers, abbreviations, and unfamiliar terms. However, once you understand the main sections and what to look for, it becomes much easier to keep track of your finances and ensure everything is accurate.

Start by checking your personal information at the top of the statement. Make sure your name, address, account number, and statement period are correct. This confirms that you’re reviewing the right account for the right time frame.

Next, look at the “Beginning Balance” — this is how much money was in your account at the start of the statement period. Then, review the list of transactions. These are usually divided into credits and debits. Credits are deposits or money coming into your account, like paychecks or refunds. Debits are withdrawals or purchases, such as shopping, bill payments, or ATM withdrawals.

Pay close attention to the “Total Deposits” and “Total Withdrawals” sections. These sums give you an overview of how much money you received versus how much you spent or paid out during that period. The difference between these totals, along with the beginning balance, will help you understand how much money you should have in your account.

At the bottom of the statement, you will see the “Ending Balance.” This is the amount of money you have left in your account after all transactions for that period. It’s important to compare this with your personal records or receipts to ensure everything matches. If there are discrepancies, such as unfamiliar charges or errors, contact your bank immediately to resolve the issue.

Additionally, many bank statements include fees or charges for services, which might be listed separately. Keep an eye out for any fees you didn’t expect so you can understand your account costs better.

Regularly reviewing your bank statement helps you stay in control of your money. It allows you to spot unauthorized transactions early, track your spending habits, and catch mistakes before they become problems. Take your time with each statement, and don’t hesitate to ask your bank for help if anything looks confusing or suspicious.

By breaking down your bank statement into its main parts — your personal info, transaction list, totals, and balances — you’ll gain confidence in understanding your finances and managing your money more effectively.