How a bank keeps your money safe

Life Skills · Money & Finance · ages 7-9

Name ______________________ Date ____________

A bank is a safe place to keep your money.
Circle one: True False
What does a bank do with the money you put in it?
- Keeps it safe and lets you save it
- Spends it on whatever it wants
- Loses it on purpose
What is interest?
- A little extra money the bank pays you for saving there
- A fee you must pay every time you visit the bank
- A rule about how much money you can keep
Why might a bank account be safer than keeping all your money in a jar at home?
- The bank looks after it, so it is less likely to be lost or stolen
- The jar turns money into gold
- Banks are only for grown-ups, so kids don't need to worry
Sam puts $50 into a savings account. The bank pays 4% interest after one year. How many extra dollars does Sam get from the bank?
Answer: ______________
Ravi puts $10 in his savings account. After a year, the bank pays him $1 in interest. How much money does he have now?
Answer: ______________
Zoe says the safest place for her money is in a jar under her bed. Is she right?
- Yes, jars are always safer than banks
- It does not matter where the money is kept
- No, a bank keeps money safer, since it can't be lost or stolen as easily
Priya saves $100 in her bank account. The bank pays her $5 in interest for the year. How much money does she have at the end of the year?
Answer: ______________
Ben says, 'A bank is risky. If I put my money there, it just disappears forever.' What is wrong with what Ben said?
- Banks only let grown-ups take their money back
- The bank keeps his money safe, and he can take it out whenever he needs it
- Ben is right, money put in a bank is gone for good

Answer key

For grown-ups. Fold this page away before handing over the rest.

How a bank keeps your money safe W1-mt_uSUqTjOl8m-s1

True · That's exactly what banks are for: keeping your money safe until you need it.
Keeps it safe and lets you save it · A bank's job is to keep your money safe and help you save it for later.
A little extra money the bank pays you for saving there · Interest is a small reward the bank pays you just for keeping your savings there.
The bank looks after it, so it is less likely to be lost or stolen · A jar at home can be lost, broken, or taken, but the bank keeps careful track of your money.
2 · Interest is a percent of the money you save. 4% of $50 is $2, so the bank gives Sam $2 extra.
11 · Add the interest to the amount he saved: 10 plus 1 makes 11.
No, a bank keeps money safer, since it can't be lost or stolen as easily · A bank keeps careful track of your money and protects it, which a jar at home cannot do.
105 · Add the interest to what she saved: 100 plus 5 makes 105.
The bank keeps his money safe, and he can take it out whenever he needs it · Money in a bank does not disappear. It stays safe in the account until you need it.