Financial Literacy · Everyday

How to read a bank statement: balances, direct debits and card payments

A bank statement lists every payment into and out of your account over a period, usually a month, with a running balance. Checking it helps you spot mistakes, forgotten subscriptions and fraud.

Ages
14+ (rough guide)
Level
Everyday
Subject
Financial Literacy
Time
15–20 minutes
Format
Online + printable
Try it online Print worksheet & answers Online + Print
  1. 1Learn it
  2. 2See it worked
  3. 3Try it online
  4. 4Print it
  5. 5Check your answer

Before you start

Who it's for and what to know first

Adding and subtracting money with decimals.

Learn it

How it works

  • Opening balance: what was in the account at the start. Closing balance: what was there at the end.
  • Money in (credits): wages, refunds, transfers from others. Money out (debits): card payments, bills, cash withdrawals.
  • Closing balance = opening balance + money in − money out.
  • Common codes on UK statements: DD = direct debit (the company collects a varying amount), SO = standing order (you send a fixed amount), BGC or CR = credit in, POS or card payment, ATM = cash machine.
  • A negative balance (sometimes shown as OD or with a minus sign) means you are overdrawn and may pay fees.
  • Check each month: unknown payments, duplicate charges and subscriptions you no longer use. Contact your bank quickly about anything you do not recognise.

Worked example 1

Opening balance £312.40. Wages in £1,480.00. Rent SO £650.00. Energy DD £78.25. Card payments £96.15. Closing balance?

  1. Money in: £1,480.00.
  2. Money out: 650.00 + 78.25 + 96.15 = £824.40.
  3. 312.40 + 1,480.00 − 824.40 = 968.00.

Answer: £968.00

Try it online · print it · check it

Practice questions

Type amounts as numbers, e.g. 590 or 44.25. Negative balances start with −. Type your answer, then press Check answers.

Tips

Common mistakes

  • Adding money out instead of subtracting it.
  • Ignoring small repeated charges — they add up over a year.
  • Only looking at the balance, not the individual lines.

Where next?

EasierMaking a budgetA budget is a plan for your money: what comes in, what goes out and what is left.Harder / next skillSimple and compound interestInterest is money paid for using money.RelatedReading a payslipA payslip shows what you earned and what was taken off before the money reached your bank.RelatedFilling in formsForms collect information in a set format.MoreAll Financial Literacy resourcesPractical money skills at three stages: children learning coins and saving, teens getting their first payslip, and adults managing bills.

Last reviewed: 25 September 2026