Banking

PART 1: Using a Bank

After this lesson you will:

Be aware of different services that banks offer their customers
Understand the differences of purpose between checking and savings accounts
Understand the processes of writing and depositing checks.
Be able to balance a checkbook

Copy of Banking QoD #35: What percent of teens have opened a bank account?

PART 1: Using a Bank

If you have money, you can put it in your mattress or you can put it in a bank.

A bank can offer many financial services to its customers that make handling and saving your money easier.

Bank Services:

Bank Accounts
ATMS
Cashier's Checks
Traveler's Checks
Digital Banking
Credit Cards
Loans
Notary Services
Safety Deposit Boxes

Checking Accounts - A checking account is an easy way for you to put money in and take money out of the bank when you need to.

Checking accounts and savings accounts are completely different things. Watch this video to learn about the differences.

📜 Learn more about checking accounts.

📜 Learn more about balancing your checkbook.

🎯 Do this activity to check what you've learned.

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PART 2: Saving Money

After this lesson you will:

Be aware of different options that banks have available for saving money
Understand the concept of compound interest and how it is used for savings accounts
Be able to calculate compounded interest for certain scenarios

What if your plan is to save money? Common ways are to open a savings account or a CD. They are both used to save money for the future. Both of these earn interest for you (the banks way of saying "thank you" for letting them use your money).

Savings Account

You put money in the bank, but you can take the money out whenever you need it (for the most part).

The interest is usually low and can change over time.

Certificate of Deposit (CD)

You put money in the bank for a FIXED amount of time. You are penalized if you take it out early.

The interest rate is fixed for the life of the CD. The longer you keep in it the bank, the higher interest rate you will get.

More About Interest.

Interest is the money that the bank adds to your account for letting them use your money.