1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
kirza4 [7]
3 years ago
13

How to explain the banking system to young students

History
1 answer:
mr_godi [17]3 years ago
3 0

You’ve done a great job saving. Now, your parents want you to put those dollars and cents into a  safe of money savings account at a bank.

How do banks work? And how do people use banks?

Lots of people give their money to banks.

When you give your money to a bank, it’s called a deposit. Banks keep your money safe. AND, more importantly, banks will pay you for every dollar you keep in a savings account! The money the bank pays you is called interest. The bank will pay you interest every month you keep the money in your savings account!

You’re probably thinking, “Wait a second… banks pay ME money, and I don’t have to do anything? Why in the world would a bank pay me money to do nothing?”

Banks lend your money to other people.

If people don’t have enough money saved up to buy something, they often borrow money from the bank to buy big things, like houses and cars. The banks lend them the money to buy these things , but the banks expect people to pay the money back AND pay the bank a little extra money, besides.

Let’s say you borrowed $10 from a bank. You get the $10 right away. But when you pay back the $10, the bank will charge you $1 or $2 extra for giving you the money when you needed it. So you pay the bank $11 or $12. That’s how banks earn money.

Without money from people like you, banks wouldn’t have any money to lend. That’s why banks will pay you interest.

If you leave your money in savings…

Every month, the bank pays you for keeping money in your savings account. And over time, that extra money really adds up!

Imagine if your parents gave you $100 for your birthday every year for ten years. If you put it in your piggy bank, you’d have $1,000. But if you put it in a savings account, you might have $1,100 or even more. That’s an extra $100, and you didn’t have to lift a finger! That’s why it pays to open up a savings account!

You might be interested in
Why did kings of France,Spain, and England ugre exploration and settlement of the new world?
Montano1993 [528]

They wanted to expand their empires and nations by acquiring more land. They wanted to kidnap the Natives and force them into slavery.... yeet

8 0
3 years ago
Read 2 more answers
Most African nations resisted assimilation. True or false? Most African nations resisted assimilation. Answer is True.
ahrayia [7]
Its true i guess??? since you did the question and the answer

5 0
3 years ago
It was basically set up like a mass assembly line in the monastery and was called a ______.
zhenek [66]

It was basically set up like a mass assembly line in the monastery and was called a scriptorium.

Answer: Option D

<u>Explanation:</u><u> </u>

In ancient times the writings were done in clay tablets and then was done in wax and then on the papyrus or paper. In Monastery there was a place called as the scriptorium where the scripts were written and stored. The Scriptorium was the place where they copied, wrote, maintained manuscripts. The monks working there as scribes would script it and arrange it in a mass assembly line style.

Each scriptorium had a director who was a provisioner who provided materials and checked the copying process. It was also a custom followed that the monks were asked to write at least for an hour.  

7 0
3 years ago
Why was the end of the importation of slaves into the United States in 1807 met with little resistance?
Sergeu [11.5K]
It was the abolition of the slave trade.
6 0
3 years ago
Read 2 more answers
Why did the ancient Roman government begin the "bread and circuses" program to keep the poor fed and entertained? They cared abo
KengaRu [80]
The saying a hungry man is an angry man is really true. the whole point of doing what they did was basically to keep the masses mind occupied and to cancel any form or rebellion peacefully.
4 0
3 years ago
Other questions:
  • Why did the Spanish start bringing african slaves to the caribbean colonies and settlements?
    6·1 answer
  • What is the study of the world
    9·2 answers
  • President obama's proposals for health care reform, and his efforts to negotiate and pass the affordable care act ("obamacare")
    14·1 answer
  • The colony of ____ established the idea of religious liberty.
    5·1 answer
  • Fort still can be described as?
    14·1 answer
  • In which countries does a federal system work best?
    12·1 answer
  • Why do the media sensationalize issues?
    9·2 answers
  • What did napoleon do that prompted the us to declare war on britain and not france?
    7·1 answer
  • What is the main concern in History???<br><br> Please Help Thank You
    14·2 answers
  • West Germany and _______ were challenging the USA and everything from steel to electronics.
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!