This one needs a bit of explaining…
While interning at Mid Penn Bank I was asked to write a newsletter that is distributed to customers that have a MySavings account. This special account is essentially a children’s savings account that introduces them to financial management and grows with them, eventually becoming a permanent bank account upon turning 18.
So here is my take on a children’s newsletter. I included various explanations, an open ended question, some trivia, a puzzle and a game. It was truly a delight to write. Nothing is quite like explaining things to kids, but it was challenging and rewarding to work through. I hope you enjoy it!
How do Banks Work?
Is your piggy bank stuffed? Then it may be time to take your money to the bank. You probably know that a bank is a place where people keep their money. Your parents probably keep their money there. But how do you use a bank, and why would you want to keep your money there?
When you decide you want to put your money in the bank, you open up an account. This allows you to put all of your money in one place. Putting money into the bank is called making a deposit. People deposit their money at the bank because it keeps it safe, but also because the bank pays you to do it. This is called interest, and the more money you put in the bank, the more you’ll get!
You’re probably thinking, “Why would a bank pay me to keep my money?” Banks do this because when you put your money in they can lend it to others. This is called a loan. People take out loans to buy things that they wouldn’t normally have enough money upfront for, such as cars, houses or college. They are allowed to buy these things in exchange for a promise that they will pay the money back with interest. For example, if someone borrows $100 from the bank, they would need to pay $110 back to the bank. This is the main way that banks make money.
When you get money as presents or allowance, put a little of it in the bank so that it can accumulate interest over time. The longer it’s in your account the more money you’ll get. Opening up a savings account is worth every penny.
What would you do with $1,000?
The holidays are fast approaching, and that means you may receive gifts in the form of money from your family. Imagine if you got $1,000 as a gift this year. Would you buy a new bike? A new game system perhaps? Maybe an awesome gift for your parents (you know they would love you for it)! Write down what you would do with the money in the space below! Get creative!
In the future it is possible to afford these things, but it all starts with saving, so don’t forget to put some of that holiday money into your MySavings Account!
The Price is Right!
Can you guess how much these items cost? Note: Make this a matching activity with pictures
Bike ____ (150)
Sneakers ____ (60)
Soccer Ball ____ (30)
Box of Crayons ____ (10)
Sunglasses ____ (35)
Bottle of Soda ____ (2)
Name that bill!
Write the letter of the dollar bill next to the person featured on it
|1.||Benjamin Franklin||a.||$50 Bill|
|2.||Abraham Lincoln||b.||$1 Bill|
|3.||Ulysses Grant||c.||$20 Bill|
|4.||George Washington||d.||$5 Bill|
|5.||Alexander Hamilton||e.||$100 Bill|
|6.||Andrew Jackson||f.||$10 Bill|