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What does it mean if you "balance your checkbook"?

It seems to be a sign of good financial habits if you balance your checkbook every month - but what does that really mean?

I'm from Europe and I haven't written out a check in almost 20 years. I don't even know whether they still exist. Everything is by wire transfer here. And while I know what it means to write or cash a check, I don't know what "balancing a checkbook" refers to. What is it you are supposed to do?

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