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Grade 5 Social Studies · World 4: Hard Times · Level 42
What Banks Do
Explain checking accounts, savings accounts, and loans.
Warm-up, learn, try it together, practice, then a quick check. About 15 minutes.
What children learn in Level 42
- Banks are the third sector. Remember the banks that failed in the Depression? Here's what banks do when things go right.
- A checking account keeps money for spending. You pay with a debit card or a check, and the money comes out of your account.
- A savings account keeps money for later. The bank pays you a little extra, called interest, because it can use your money while it waits.
- A loan is money the bank lends. People borrow to buy houses or start businesses, and they pay it back with interest. That interest helps the bank make money.
- After the Depression, the government began insuring deposits. If an insured bank fails, people still get their money, up to a limit. Bank runs became rare.
Georgia Standards of Excellence in Social Studies:
- SS5E2.c — Describe the bank function in providing checking accounts, savings accounts, and loans.