Hey 4-Hers! We know you’re missing camp this year, but don’t worry because we’ve got something special for you. Welcome to First Savings Bank Odon, where we’ll not only talk about banking basics but also have some fun financial activities together. My name is Hope Roush, and I’m the financial literacy leader at Ohio Valley Bank. So let’s jump right in and explore the exciting world of banking!
The Main Purpose of a Bank
Banks are more than just buildings. They are the guardians of your hard-earned money, keeping it safe, secure, and protected. When you have a bank account, your money is insured by the FDIC (Federal Deposit Insurance Corporation). But that’s not all banks do! They also process transactions, open checking accounts, and get you set up with debit cards, credit cards, and more. And when you’re ready to make big purchases, like a new home or car, banks are there to help you with loans. So you can see, banks play a crucial role in our financial lives.
Exploring Different Types of Bank Accounts
Let’s dive into the different types of bank accounts that are available. Starting with checking accounts, they are the most commonly used accounts. You probably already have one, or you will very soon. At First Savings Bank Odon, we offer a range of checking accounts, including rewards checking and student checking accounts just for you. These accounts allow you to keep your money safe while also providing easy access to pay for things using your debit card. And don’t forget about checks! While they may seem old-fashioned, they still have their place in personal finance. Your 4-H club might even have its own checking account, and it’s important to know how to write a check properly.
Let’s take a look at an example of how to write a check:
Your Name and Address
Date: [Today's Date]
Pay to the Order of: [Recipient's Name]
Memo: [Purpose of the Check]
Signature: [Your Signature]
Remember to start writing as far over as possible to prevent tampering, and draw a line after the amount to ensure security.
It’s also important to keep track of your transactions. Whether you write checks or make purchases with your debit card, always fill out your check register and monitor your account balance. This helps you catch any fraudulent activity and ensures you never spend more than what you have. And remember, if you need to add money to your account, simply make a deposit using a deposit slip or ticket.
Saving for the Future
Let’s shift our focus to savings accounts. They are a great way to watch your money grow. When you deposit your money in a savings account, it earns interest, just like watering a flower helps it grow. At a young age, it’s never too early to start saving. So why not turn it into a fun activity? Get some mason jars and label them as “Spend,” “Give,” “Grow,” and “Save.” This way, you’ll have different jars for different purposes, such as everyday expenses, saving for something big, investing for the future, and giving back to your community.
Long-Term Savings with Certificates of Deposit
Certificates of Deposit (CDs) offer a long-term savings option with higher interest rates. When you deposit money into a CD, it cannot be withdrawn for a set period of time. This is a smart choice for funds you want to set aside for future expenses, like college. Just remember that CDs have a start date and maturity date, so choose the one that suits your needs.
Planning for the Future with Money Market Accounts
While this may be something you’ll consider when you’re older, it’s worth mentioning money market accounts. These accounts typically offer higher interest rates but require a larger minimum balance than a regular savings account. As you grow and explore different financial options, you can always come back to First Savings Bank Odon for guidance and support.
That wraps up our virtual camp series. We hope you’ve enjoyed learning about banking basics and the exciting world of finance. Remember, your friends at the Banking Blog are always here to help you navigate your financial journey. For more financial activities and lessons, visit our virtual classroom at Banking Blog. Stay curious, keep learning, and we hope to see you next year at 4-H camp!
Note: This article has been adapted from the original content by First Savings Bank Odon to fit the brand focus of the Banking Blog.