First off, what is a bank? A bank is a financial institution building that gives loans that they lend to people. It holds onto the money you want to put in a banking account to make transactions, and buying purchases. A bank holds information that you put into the bank to access the money anyone put in a checking and savings account, which can be accessed even on an app from your phone. Overtime people will have to pay the bank back with interest. Banks take deposits as well, meaning if someone wants to put more money into their bank account. Why is banking important? Banking is important because banking will help you keep track of anyone’s budget. It helps with getting organized and having places to keep the money saved somewhere safe. Banking will also help with helping a student be prepared on what they will need later on in life as an adult.
There is more information on what to do, and what all these words mean, like what is a deposit? What a deposit is, a deposit is when you can give money to the bank putting it into a savings account or checking account on a debit card. Secondly, what is a bank account? A banking account is something a person can keep all their personal financial information in and a better place to keep money with high security when in a savings/checking account. A checkings account is a type of account you use to make transactions/purchases. You can withdraw or deposit money for daily transactions as well. And if someone received a check the day before from someone who gave it to them you can call and put it in a checkings account, or take out the money with their own debit card if it was in the checkings account already. A savings account is another account where people store money and earn interest on the money they put in their savings account. The amount of money put in the savings account the bank uses for other loans for people, but the money will always be there and accessible whenever someone wants to use it or has little money in their checkings account. What is interest? Interest is the expressed annual percentage of the cost of money that is loaned to a person. The savings account is the rate of the bank that will pay them for bowering the money from the person’s saving amount. Interest is basically the money you earned from the savings account. There is one more account that will be very helpful, which any student or kid under 18 can get for a preparation which is a teen banking account. A teen banking account is an account that can guide and prepare a highschooler for a debit card, and responsibilities with their own money they earn from a job, or from their parents. A teen account will get teenagers familiar when an adult on how to use a debit card and how to swipe one. If under 18 a parent guardian will have to join in on the account linking the teen account to theirs so they have access to transactions/purchases and when their children have bought the things they bought. The parent can transfer more money into their savings account, or checkings account whenever they would want, they also can take out money if they need to.
Last but not least, the teen account and the information provided will be very helpful for highschoolers and our Coronado students when they get out of highschool or into highschool. This is not provided or forced saying anyone needs a debit card, but this is just news on what a bank is and how it works, as well as how the teen account works and if wanted one. Students can ask anyone of their parents if they want to buy their own things!