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What is a bank?
A bank is a financial institution that stores money, offers savings accounts, provides loans, and helps people manage their finances.
What is a savings account?
A savings account is a bank account where you can safely store money and earn interest over time.
What is interest?
Interest is the money paid to you by the bank for keeping your money in a savings account, or the extra money you pay when borrowing.
Why is saving money important?
Saving helps people prepare for emergencies, reach goals, and avoid debt.
What does it mean to borrow money?
Borrowing means receiving money from a bank or lender with the promise to pay it back, usually with interest.
What is a loan?
A loan is money that a bank lends to a person, which must be repaid over time with interest.
What is a credit score?
A credit score is a number that shows how responsible someone is at paying back borrowed money.
How do banks make money?
Banks earn money by charging interest on loans and fees for services.
What is a checking account?
A checking account is a bank account used for everyday spending, such as paying bills or making purchases.
What is the difference between saving and investing?
Saving is storing money safely, while investing is putting money into assets that may grow but come with more risk.
What is compound interest?
Compound interest is interest earned on both the original amount and the interest added over time.
What is a budget?
A budget is a plan that shows how you will spend and save your money.
What is an ATM?
An ATM (automated teller machine) lets you deposit or withdraw money from your account without visiting a bank teller.
Why is borrowing money risky?
Borrowing is risky because if you can’t repay, you may owe extra fees, lose property, or damage your credit score.
What is collateral?
Collateral is property (like a car or house) that a borrower offers as security for a loan.
What is a debit card?
A debit card lets you spend money directly from your checking account.
