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BankWhat are Banks?

We talked about saving money. People used to keep extra money they had in a place hidden away in their home. But this is not really safe. Most people use a bank.

Banks give us lots of services for our money. You can take your paycheck there and cash it. You can save your money at a bank so it will grow, and take it out when you need it. A bank can give you a way to write “checks” so you can pay people without using cash.

Banks also give loans to the customers they think will pay them back. Banks charge interest for the loans they give, by making you pay back a little more money over time than you get.

To complete this lesson, click on page 2 below.

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