You are grocery shopping. You start to write a personal check at the store, but can't remember if you have money left in your account. Your ledger is no help because you and your spouse don't record every transaction. Throwing caution to the wind, you hope your spouse hasn't made any recent cash withdrawals, and you write the check for your groceries. You've been with your bank for years, and they will likely pay the check. You'll pay the fees later.

Not only is this irresponsible, it's also illegal. Bouncing checks is against the law. Mishandling your checkbook can leave you in debt or in jail; therefore, it's imperative that you learn to maintain your checking account.

When you keep your checkbook balanced, it serves several useful purposes — you can track expenses, simplify bill payments, and build a good credit history. However, ATM withdrawals, electronic fund transfers, debits, and checks can be hard to track. And it's doubly hard if your spouse is making the same transactions. Forget to record just one transaction, and your family could be plunged into an overdraft nightmare.

Overdrafts occur when you try to withdraw more money (via debit, ATM, or check) than you have available. When you overdraw your account, your checks are returned to the merchant you presented them to, marked "non-sufficient funds" (NSF). Your bank then charges you a hefty fee ($15 to $50). The merchant charges you a returned-check fee as well (another $15 to $50). That $25 NSF check you wrote could now cost $125.

To assist you, the Federal Reserve has established guidelines that all banks and credit unions must follow to process checks. These guidelines are supposed to simplify and streamline how financial institutions handle and deposit checks. Learning your bank's check policies can help you better manage your checking account.

Once you overdraw your account, there isn't much you can do to stop the snowballing fees, so practice prevention by keeping your account balanced. Here are some checking account tips:

• Record every transaction. Use Quicken or Microsoft Money to assist you.
• Make a budget and stick to it. For budget help, visit Better Budgeting.
• Leave a cushion amount in your account to cover any forgotten transactions.
• Sign up for overdraft protection with your bank.
• Attend checkbook seminars that may be offered through your local Fleet and Family Support Center (FFSC).
• Visit the library for more books on personal finance.
• Shop around for the best checking account. Go to Bankrate for help.
• Learn about personal financial management online through the Chief of Naval Education & Training (CNET).

Besides wasting money on bounced-check fees, writing bad checks continuously can lead to criminal prosecution, letters of indebtedness — even separation from the military. Writing a bad check is against the law. Read more on the penalties of writing bad checks for each state at National Credit Systems. Additionally, your account problems could be reported by your bank to a consumer-reporting agency (CRA), preventing you from opening checking accounts at other banks. Now, that's seriously bad credit.