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FDIC Consumer News - Winter 1997/1998
|A look at the FDICs new
Internet site for kids, teachers and parents
This Little Piggy Goes Into Cyberspace
Wed like to introduce you to one of your childs new teachers Carmen Cents. We think shes doing an outstanding job teaching children around the world the basics about the FDIC and the American banking system. Carmen is actually a cute, bouncing pig really a piggy-bank featured in the FDICs new Internet site for kids called the Learning Bank. The FDIC knows it isnt easy making banking, bank regulation or deposit insurance appealing to youth, but so far this educational site for students in kindergarten through grade-12 is a hit.
We hope youll get a chance to visit our Learning Bank soon. Until you do, heres a look at some of what it tells kids about how the FDIC and banks serve the American people.
What is a Savings Account?: A savings account is where to put money you dont want to spend right away. A good thing about a savings account is that it makes it easy to save money, because you know its safe, and you can get in the habit of bringing money, perhaps part of your allowance, to the bank each week. With regular deposits, and the interest youll earn, it doesnt take long for savings to grow.
What is a Checking Account?: A check is like a note that says: If you go to my bank (or have your bank go to my bank), they have my permission to give you this much money out of my bank account. Youve probably seen your parents write checks at stores or at home to pay bills. Checks are especially useful when you have to mail money to someone, since mailing cash is risky because anybody could take the cash and use it. Only the person who the check is made out to can cash a check. If you write checks for more money than you have in your checking account, the bank will not pay them. This is called bouncing a check, because your bank will bounce your check back to the person you wrote it to, instead of giving them money.
What Does a Bank Do With My Money?: A bank collects money from people or businesses that want to keep their money in a safe place. The bank then lends this money to people or businesses that require additional money to meet their current or future needs. So, when you deposit money at your local bank, the money does not remain locked away in the bank vault. Instead, the bank lends your money to others in your local community. Whether it is to assist your parents in the purchase of your home or to help your neighbor start his own business, these loans benefit your entire community.
What is the FDIC?: The FDICs biggest job is insuring the savings of millions of Americans in all the FDIC insured banks across the country, even the savings of kids. The FDIC also visits banks on a regular basis to make sure they are following the rules they need to. For example, one rule banks have to follow is called the Equal Credit Opportunity Act. It says that a bank cant refuse to loan money to someone just because of his or her color, religion, national origin or for a number of other reasons.
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