What banks do

Thanks for helping me do the math! With all these jobs, I earned enough money to put gas in the spacecraft plus extra! I think I’d better put this cash in a safe place!

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.

Then we discovered the bank and learned that a bank is a place to keep your money safe while you’re not using it.

A bank

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 give you all the tools you need for your money. You can choose to put your money into a savings account — and many banks pay you a little bit of money to keep it there. It’s called interest. Wow! A chance to make money on your money!

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.

A check book with the words “checking accounts”

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!

An ATM machine, a grocery store with a bank inside, a bank, and a smartphone.

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.