What is a bank?

A bank is a place where you can put your money for safekeeping. The bank keeps track of your money and helps you pay bills, manage your money an save for the future.

Saving Money

Have you ever wanted to buy a new toy or game, but didn't have the money to buy it right then?

If you don't have the money, you have to save.

When your parents give you allowance, or your grandparents give you money for your birthday, you can save it so you can buy whatever you want later.

Did you know the best place to save your money is in a bank? Banks will keep your money safe and make sure nothing happens to it!

At the bank, they have a special place for you to keep all your money, it's called a SAVINGS ACCOUNT.

Your savings account has your name on it, so the bank knows that all the money there is yours.

If you keep putting a little money into your savings account every time you visit, you will be surprised at how fast all that money adds up.

What exactly is a savings account?

A savings account is a tool you can use to help you keep your money in a safe place at the bank and even let's your money earn more money!

The more money you save and the longer you keep it in the bank, the more money the bank pays you. That's why you should save as much as you can, for as long as you can!

Did you know your money can make money?

It's true! When you put your money in your savings account, the bank will pay you to keep your money safe. This is called INTEREST.

Interest is paid based on how much money you have in your savings account and how long you save.

The longer you save your money and the more money you save, the more money the bank pays you! That money goes into your savings account.

Why does the bank pay me for holding on to my money?

When you put your money in the bank, you really are loaning your money for the bank to use to make money. In exchange, the bank pays you as a "thank you" for letting them use your money.

What does the bank use my money for?

The bank can let people borrow the money to buy something they want, like a new house, car or to pay for college.

When the bank lends you money, you have to pay it back with a little bit extra for letting you borrow the money.

The bank shares that little bit extra with everyone who loaned the bank money. When you save money at the bank, it pays you. When you borrow money from the bank, you have to pay them.

So now you know why it's important to save money and the best place to put your money is in a bank so it can pay you for saving.

How do you get the money you saved?

When you are ready to spend some of the money you have saved, you can make a WITHDRAWAL, or if you have saved a lot of money, you can write a CHECK.

When you go to the bank you can ask the teller, the person behind the counter, to make a withdrawal.

A withdrawal is when you go to the bank and ask to have some of the money you have saved.

But remember, you can only take as much money you have saved.

If you have already saved a lot of money, you can open a CHECKING ACCOUNT. A checking account is a lot like a savings account except you can use it to pay for things at the store using a check. A check is like a note promising the store you have the money in your bank account that can pay for what you want to buy.

However, if you break your promise, and don't have the money you said you would pay, you could be in big trouble.

You can keep track of all the checks you write inside a checkbook, which typically comes with your checks. This way, you will always know how much money is left in your checking account after writing a check.