Now 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.
Banks 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.
What banks offer:
Another 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.
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.