shutterstock_1077482648.png

SAVING

The Saving Stack helps us prepare for a rainy day! 

Ways to use this stack

1. Grow your savings balance

2. Plan for a big purchase

Become a Smart Saver

Common Terms to know

  • Bank: a business where you can keep your money safe. Banks operate under a lot of rules to make sure your money is safe. Banks also lend money to their customers for a variety of things such as buying a house, buying a car, paying for college and even starting a business.

  • Credit Union: they are just like banks! One major difference between a credit union and a bank is that credit unions do not operate to make a profit. Credit Unions are typically formed around a local area or a specific group for example The Police and Fire Credit Union.

  • Borrower: a person (or business) who goes to the bank or credit union to borrow money. Borrowers sign an agreement promising to return the money within a certain amount of time and with interest.

  • Lender: a person (or business) who gives money to a borrower. Lenders expect the borrower to return the money within a certain amount of time and with interest.

  • Interest: the extra money borrowers pay to lenders for allowing them to borrow money from them. The interest amount is discussed before money is borrowed. When a borrower signs the agreement, they are promising to pay the amount they borrowed and the interest too.

Did You Know?

When you keep your money at a bank or credit union, your money is used in different ways, including lending it to borrowers. You become an indirect lender. That's how your money earns interest!