Where do you keep your money? In a safe place? When I first earned money, I tried hiding it, wearing it, storing it…
But then I started losing it. Or the money wasn’t there when I needed it.
It’s great! You can think of a bank like a tool — a tool that helps you keep an eye on your money while you’re saving it.
Banks also offer checking accounts so people can pay for things like rent, electricity, groceries, and other bills. Instead of using cash, people pay with checks.
Checks are really the same thing as cash, but they’re safer to use and a lot easier than carrying around lots of money.
Banks also make it real easy to manage your money wherever you happen to be. I like using the bank store in my grocery store! But you can also use ATMs, the phone, or even go to the bank!
Banks can also help you buy very expensive things — things that would take a long time to save for, like cars, homes, or an education. Banks may do this by lending the money in the form of loans and credit cards.
We’ll learn more about that in another adventure called Credit.
Click the Next button to learn about the cycle of money.