So, where do you keep your money? In a piggy bank? In an envelope tucked in a drawer? Maybe your dad keeps it in a locked box for you. Or some of you might even have a savings account at the bank. Is that the best way?
The fact is, when you have a lot of money, a bank is the safest place for it. Having lots and lots of cash lying around can be risky -- it can get lost or stolen. If you have $100.00 or more, you may want to ask a parent to open a savings account for you. Even with your savings account, you may want to keep some cash at home for little things that come up.
There are some other good reasons for opening a savings account:
- You get a monthly statement (a record) from the bank which lists all your deposits, withdrawals, and current balance. The bank statement can make your record-keeping much easier and way more accurate.
- You can earn interest. Interest is money the bank pays you for keeping money in their bank. So your money is earning money!
- When you can get to your money easily, it's tempting to dip into it for spur-of-the-moment spending. But if your savings are safely stored at the bank, you're less likely to take money out on impulse. It's a way of protecting your money from the one person who can do the most damage to it-you!
Next, check out some IML Money Tips!