What financial record is essential for tracking monthly expenditures and balances?

A bank statement is crucial for tracking monthly expenditures and balances because it provides a detailed summary of all transactions, such as deposits, withdrawals, and payments, made over the course of the month for a specific bank account. This document allows individuals to see how much money has entered and exited their account, helping them to monitor their spending habits, budget their finances, and ensure that account balances are accurate.

The bank statement also details any fees or charges that may have occurred, which contributes to an understanding of overall financial management. By regularly reviewing this record, individuals can gain insights into their ongoing financial health and identify areas where they may want to cut back on spending or adjust their budgeting strategies.

In contrast, a credit report focuses on an individual’s credit history and creditworthiness, an investment portfolio showcases owned investments which are generally long-term and not updated monthly, and tax returns reflect past income and deductions, rather than current cash flow. These records serve different purposes but do not provide the month-by-month transactional details that a bank statement uniquely offers.