Introduction to Financial Institutions for Kids and Teens
This video explains the concept of a financial institution in a simple, concise way for kids and beginners. It could be used by kids & teens to learn about financial institutions, or used as a money & personal finance resource by parents and teachers as part of a Financial Literacy course or K-12 curriculum.
Suitable for students from grade levels:
- Kindergarten
- Elementary School
- Middle School
- High School
The topics covered are:
- What is a financial institution
- What do people use financial institutions for
- Are financial institutions regulated by the government
- How does the government ensure people have confidence in the financial institutions
What is a financial institution?
A financial institution is a type of company that is part of the financial services sector.
Financial institutions provide money related services like deposits, loans, investments, insurance, etc.
There are many types of financial institutions, and most people interact with them regularly. Retail banks, credit unions, insurance companies, brokerages, and investment banks are some examples of financial institutions.
What do people use financial institutions for?
People and companies use financial institutions to deposit and borrow money, protect against monetary loss, transfer money and make payments, and invest in different asset classes.
Financial institutions are such an integral part of everyday life that when major financial institutions go bankrupt, it leads to widespread panic – often requiring the government to intervene.
Are financial institutions regulated by the government?
The health of financial institutions directly impacts the overall health of the country’s economy.
Since financial institutions handle peoples’ money, they are under strict regulation by the government to ensure consumer protection and economic stability. The government needs to make sure people have confidence in the financial institutions they are dealing with.
How does the government achieve this?
The government uses a combination of strategies to achieve this.
For example, banks are required to keep a certain percentage of deposits as cash at all times so they don’t run out of money if a lot of people want to withdraw at the same time.
The government also uses measures like insuring bank accounts through FDIC so that people do not lose all their money if a bank fails.
Download Transcript: Ideal for Use by Teachers in their Lesson Plan to Teach Kids & Teens
Podcast: What is a Financial Institution
Fun, informative and concise episodes by a 10-year old, breaking down complex financial concepts in a way that kids and beginners can understand. Episodes cover personal finance topics like saving, investing, banking, credit cards, insurance, real estate, mortgage, retirement planning, 401k, stocks, bonds, income tax, and more, and are in the form of a conversation between a cowboy (a finance novice) and his friend, a stock broker. Making finance your friend, only at Easy Peasy Finance.
A little bit about me: I have been fascinated with the world of personal finance since I was 6! I love to read personal finance books, and keep myself updated on the latest by reading various personal finance magazines. My friends often ask me questions about finance because they find it complex and intimidating. That’s what inspired me to start my YouTube channel called Easy Peasy Finance when I was 8, and this podcast 2 years later.
Everything you need to know about Financial Institutions: What is a Financial Institution, What do people use financial institutions for, Are financial institutions regulated by the government, How does the government ensure people have confidence in the financial institutions, and more.
Show notes and transcript at: https://www.easypeasyfinance.com/financial-institution-kids-teens/
