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Money Smart News for Kids

Chapter 9: Money and Banking Overview

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Last Updated: October 25, 2023

What did I learn?

Wow! You have learned a lot about money and banking. You are on your way to being money smart! Let’s review what we have learned from Isabella and Noah.

In Chapter 1, we discovered that an FDIC-insured bank is a business that protects your money and keeps it safe. When you deposit your money in a bank, it helps you to save and grow your money. Saving money can help you to buy things now or prepare to buy things in the future.

We met Isabella and Noah in Chapter 2. Isabella is a fourth grader who loves to play basketball and Noah is a fifth grader interested in music and animals. Both realized saving money could help them to make future purchases, like basketball camp or purchasing an electric guitar. Remember, when setting a savings goal, you need to think about what you are saving for, how much you need to save, and when you will need it. Setting a savings goal will help you buy things you need and want.

We uncovered why it is important to have a budget in Chapter 3. Creating a budget can help you with your savings goals, whether they are short-term or long-term goals. A budget helps you keep track of how much money you earn, how much you spend, and how much you have saved. This is helpful, especially when you make a decision on how much money you have to spend when shopping for a need or a want.

In Chapter 4, Isabella included helping her community in her savings goal. She raised money to put a basketball court in the local park. She included the amount she planned to share with her community in her savings goal and her budget. By sharing with others, you create positive impacts in your community and can build lasting friendships along the way.

Noah saved money from his allowance and birthday money in Chapter 5. He put his money in a savings account at the bank. Money that is saved in a savings account earns compound interest, which helps your money grow when it is in the bank. Every time you earn interest, it is added to your principal and the higher the interest rate, the faster your money will grow. The longer your money is in a savings account, the more you earn.

While walking dogs in Chapter 6, Noah met a dog trainer and veterinarian. Because of his dog-walking job, he is now interested in learning more about careers with animals. While reading about Noah and his experience, we explored how jobs and careers influence the money you save and spend. We learned that not all jobs and careers pay the same. Jobs and careers also require various education and skills. You should explore various jobs and careers to find the type of work that interests you.

In Chapter 7, Isabella borrowed money from her parents to attend a basketball camp. We explored what happens when we borrow money, take a loan, or use credit. We learned that we should only borrow money or use our credit for what we need. We also learned that it is important to pay it back on time. This helps us to establish good credit with others.

Isabella decided to start her own business in Chapter 8. She sold refreshments at the basketball tournament. We learned not all jobs and careers mean working for someone else. Sometimes great ideas and amazing businesses come from entrepreneurs, people who own their own businesses.

Student Questions:

  • Why is it important to keep your money in a bank?
  • How do values and goals influence how you save money?
  • Why is it important to budget before you spend your money?
  • What are some good things about saving and sharing your money?
  • How does compound interest help your money grow?
  • How might your job or your career affect your pay?
  • What are some things you should consider when thinking about asking for a loan?
  • What is an entrepreneur?