What is a Bank? A Simple Explanation for Kids, Teens and Beginners

What is a Bank? Easy Peasy Finance for Kids and Beginners

Introduction to Banks and Banking for Kids and Teens

This video explains the concept of banks and banking in a simple, concise way for kids and beginners. It could be used by kids & teens to learn about banks, or used as a money & personal finance resource by parents and teachers as part of a Financial Literacy course or K-12 curriculum.

What is a Bank - A Simple Explanation for Kids and Students
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Suitable for students from grade levels:

  • Kindergarten
  • Elementary School
  • Middle School
  • High School

The topics covered are:

What is a Bank - Infographic
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Infographic: Click Here to Download

I heard my parents talk about putting their money in a bank. But…

What is a bank anyway?

A bank is the type of financial institution that gives loans, which is money that they lend you which over certain amount of time, you pay them back with interest.

What is a Bank for Kids and Students - A Simple Definition
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And they also take deposits. For example, you can give them money, which you can put into either checking or savings account, or a CD which is a certificate of deposit.

Banks also issue checks and debit cards so that you can access your money.

Well, is there anything else that banks do?

Banks can also issue credit cards, give mortgages – which is a loan on your house, other types of loans and issue banker’s checks.

Well, how do banks even make money?

The difference between the interest that they charge on the loans that they give you, and the interest that they pay on deposits that you make in a checking account, saving account or CD, is one of the ways that they make money.

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They also make money by fees that are charged for services like issuing banker’s checks.

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Well, are there different types of banks?

Yes, there are.

There are traditional banks with branches that you could visit, or you can visit them online at their website.

But there also internet only banks, where all of the transactions are made completely online and they do not have any physical presence.

Banks and Banking for Kids and Students - A Simple Explanation
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I keep hearing about investment banks. Well, what are they?

Investment banks are banks that work mainly with companies. But that’s a topic for another time.

Thank you very much for telling me about a bank, Wall Street Willy.

You’re welcome, Sooper Cooper. Remember, finance is your friend!

Video Featured in the Below Financial Literacy Courses for Kids and Teens

Download Transcript: Ideal for Use by Teachers in their Lesson Plan to Teach Kids and Teens

Podcast: What is a Bank?

What is a Bank
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