Purpose of Banks

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What is the purpose of a bank?

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To keep money safe, provide loans, and offer financial services.

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What is a savings account?

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A bank account where you can save money and earn interest.

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What is interest?

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The money paid by a bank to you for keeping your money in a savings account.

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What is a check?

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A written order to a bank to pay a specific amount of money from your account.

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What is budgeting?

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A plan for how to spend and save your money.

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What is a fixed expense?

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An expense that does not change from month to month, like rent.

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What is a variable expense?

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An expense that can change each month, like groceries or gas.

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What does it mean to save money?

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To set aside money for future use instead of spending it.

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What is earning income?

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Getting money from work or investments.

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What is a loan?

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Money borrowed from a bank that must be paid back with interest.