Banks and you

AngieNow that you’ve seen the role of banks, do you see why they’re almost everywhere? Things just can’t get done without them!  But what about you? How do banks help just you?

First, banks keep your money safe. They set you up with accounts — like a savings account for keeping your money safe and making it grow with interest.

A bank

AngieBanks also set up checking accounts, usually for adults over 18, so they can pay for, say, groceries or bills, using paper checks, not cash. We’ll learn more about checks in Savings and Checking.

Another way banks help you is by giving you a loan for expensive things like cars. When people get loans from the bank, they’re using everyone’s money. So each borrower has a big responsibility to pay back the loan — plus they pay interest back to the bank. Pay interest?!! We’ll learn more about interest soon.

Remember these key points about banks.

Banks:

  • Keep your money safe
  • Hold your money in accounts

 
What banks offer:

  • Savings accounts to help your money grow
  • Checking accounts to help you buy things without cash
  • Loans to help you buy big-ticket items

AngieAnother way banks can help you is by issuing you a credit card. Credit cards are like loans, but you may pay a higher interest rate for them. And with credit cards, you can also buy many different things. With loans, generally they’re used to buy one thing in particular.

Remember these key points.

  • Credit cards are basically loans with higher interest and more flexibility
  • Investment accounts to plan for your future

And finally, if you want to see your money grow over time, say for college, banks can help you with investment accounts. We’ll look into those in Smart Investing.

Click the Next button to learn about getting to your money in the bank.