Understanding things that are at a bank or what is used to do banking is a very important part of learning how to be smart with your hard earned money. It's never too early to know that being smart about money and saving is an important part of life.
A CHECKING ACCOUNT
is a transactional bank account that allows you to pay for your everyday purchases, but normally doesn’t earn interest.
A SAVINGS ACCOUNT
is a bank account that pays interest on the amount of money in the account. The more money you have in the account and the longer you keep it, the more interest you will make.
is money the Bank pays you for keeping your money on deposit with them in a Savings Account. It's kind of like a reward for you not spending your money. The more money you put in the Bank and the longer you leave it there, the more interest you'll get.
is something you do that changes the balance of your account. This can be either a deposit or withdrawal from your account.
is when you put money IN to your bank account. When you make a deposit, your account balance goes up.
is when you take money OUT of your bank account. When you make a withdrawal, your account balance goes down.
An ACCOUNT BALANCE
is the amount of money in your account. It’s like the “=” amount in a Math problem. For example, if you start with $5 and deposit (or add) $2, your balance is $7. If you then withdraw (or take out) $3, your balance becomes $4 (Because $7 - $3 = $4)
is a plan on how you will spend the money you earn. It includes how much money you earn (and from where you earn it) and details what you want to spend your money on and how much you will save.
For more resources, please click the links below:
Click here to learn about money with games & simulations at www.FederalReserveEducation.org
Click here for games, toons, and more at the kids section of www.USMint.gov
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