Personal Finance Basics Practice Test 2026 - Free Personal Finance Practice Questions and Study Guide

Once you have confirmed that everything is correct in the reconciliation process, the appropriate action for your checked items is to shred them. This is important for a few key reasons.

First, shredded documents help protect your personal information and financial data from identity theft. Keeping financial documents with sensitive information can pose a risk if they are not stored securely. Shredding ensures that any account numbers, bank details, or personal identifiers are rendered unusable by potential fraudsters.

Second, many financial institutions recommend destroying your old records after a certain period, especially once you have verified the accuracy of your accounts and no longer need the paperwork for reference. By shredding unnecessary documents, you also reduce clutter and maintain an organized financial system.

In terms of the other options, storing items in a drawer may keep them safe temporarily, but it does not address the risk of potential data breaches. Filing under taxes typically applies to documents that you need to keep for future reference, which is not the case for items that have already been reconciled. Giving them to your accountant can be appropriate for certain documents but is not necessary when you have confirmed their accuracy and have no further use for them.