Introduction to Savings Account for Kids and Teens
This video explains the concept of a savings account in a simple, concise way for kids and beginners. It could be used by kids & teens to learn about it, 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:
- Elementary School
- Middle School
- High School
The topics covered are:
- What is a Savings Account
- How much interest does it pay
- Why should you have one
- Moving money between savings and checking accounts
- Who should have one
- How can you open one
- What are the fees
- How to select the right savings account
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What is savings account?
A savings account is an account for storing money while you earn some interest from it.
But how much interest do I make from a savings account?
It changes from time to time, but in 2018, it is 0.1% – 1.5% per year depending on the bank.
Why should you have a savings account?
That’s really low interest… So what’s the point of having a savings account?
Well, first of all, your money is absolutely safe and can be stored for short to medium term goals, like a down payment for a house or a car, or it can be used for an emergency fund.
Can I deposit money from my piggy bank in a savings account?
Yes, you can – it would be a lot safer there, and it would earn some interest.
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How many savings accounts can I have?
Well, you can have any number you want!
Can I move money from one savings account to another savings account, or even to a checking account?
Yes, you can do that. But usually, there is a restriction on the number of times that can be done in a month.
Who should have a savings account?
Well, anyone who is saving for short to medium term goals and needs a safe way to earn some interest. And anyone that’s also building an emergency fund.
Is there any fee associated with a savings account?
Yes, most banks have $5-$10 monthly fee. But that can be waived if a minimum balance is maintained. Depending on the bank, the minimum balance is usually $300-$500.
The fee could also be waived if the savings account is linked to a checking account.
But how do I open a savings account?
It’s very easy to open a savings account. You can do it by visiting the bank’s branch, or you can do it online.
You just need your social security number and a photo ID, like your driver’s license.
But how do I choose a savings account?
Like, are some better than others?
You should pick a bank that is FDIC insured, just for safety. And you should also look for high interest. And also if you can, choose a savings account with no monthly fees.
Whoa… That’s a lot about a savings account! Thank you very much for telling me what a savings account is.
You’re welcome Sooper Cooper. Remember, finance is your friend!
Video Featured in the Below Financial Literacy Course for Kids & Teens
Download Transcript: Ideal for Use by Teachers in their Lesson Plan to Teach Kids & Teens
Podcast: What is a Savings Account?
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 a bank savings account: what is a savings account, how much interest do you get in a savings account, why should you have a savings account, how many savings accounts can you have, can you transfer money from one savings account to another or to a checking account, who should have a savings account, what is the fee for a savings account, how do you open a savings account, how do you choose a savings account, and more.
Show notes and transcript at: https://easypeasyfinance.com/what-is-a-savings-account/