In lesson 3 you will learn about saving money and banking. Banks are businesses where people keep their money. Banks offer a number of ways for managing your money. Below are different services that banks offer.
If you put your money in a savings account, the bank will pay you a small amount of money, called interest, on the amount you save. Your money stays safe—and it grows!
Banks also offer checking accounts. These allow people to pay for things like rent, electricity, groceries and other bills, using checks or a card instead of cash. Writing a check or using a card can be safer and more convenient than carrying around a lot of cash.
People can also borrow money from a bank. By borrowing money, you can buy high-priced things like cars, homes, or education, and pay the money back over time. When you borrow money from a bank, you pay interest to the bank for lending you the money. Common ways to borrow money are loans and credit cards.