Workforce Readiness Skills

Bank - A bank is a place of business where one can safely deposit money until it's needed or withdrawn. Deposit means to put money into the bank, and withdrawal means to take money out.

For example, suppose Dwayne goes to the bank and puts money into his checking account. That is called a deposit. If he writes a check, money is removed from that account. That is called a withdrawal.

Let's look at two different types of accounts.

Checking Account - A checking account is a bank or credit union account used to deposit paychecks or other money and to withdraw money by writing checks or using debit cards.

Here are some important things to understand about checking accounts:

1. Banks usually charge a fee to establish and maintain a checking account. Fees vary from bank to bank; so it's important to compare banks. Also, It's advisable to watch for hidden fees.

2. Instead of writing checks for each purchase, a debit card can be used. A debit card looks similar to a credit card, and it removes money directly from a checking account. It can be easier and less expensive than writing checks.

3. It's important to record all deposits, checks written, debit card withdrawals, and bank fees immediately.

4. An account should fit individual needs. Suppose Juan only writes three to five checks per month. He will want a different type of checking account than someone who writes a large number of checks.

5. It's important to keep a checkbook or debit card in a safe place to avoid misuse or theft. Call the bank immediately if either is stolen or lost.

Depositing just a few dollars each month into a savings account for several years has great benefits.

For example, Peter deposits $25.00 each month for 20 years into a savings account earning 5% interest. At the end of 20 years, he will have over $10,000.00!

Some investments pay far more interest than a regular savings account. When the balance in a savings account reaches a certain amount, it may be worthwhile to transfer the money into another account or investment that earns a higher interest rate.