Lesson 1: What Banks Do
About 30 minutes — Discussion-based lesson
What You Will Learn
This lesson covers:
- What a bank is and what it does
- Checking accounts vs. savings accounts
- How banks make money: the lending model
- Why people use banks instead of keeping cash at home
What a bank is and what it does
This section covers the key ideas about what a bank is and what it does. Discuss with your group or family and explore the concepts together.
Checking accounts vs. savings accounts
This section covers the key ideas about checking accounts vs. savings accounts. Discuss with your group or family and explore the concepts together.
How banks make money: the lending model
This section covers the key ideas about how banks make money: the lending model. Discuss with your group or family and explore the concepts together.
Why people use banks instead of keeping cash at home
This section covers the key ideas about why people use banks instead of keeping cash at home. Discuss with your group or family and explore the concepts together.
Check Your Understanding
1. What does a bank do?
2. What is the difference between a checking and savings account?
3. How do banks make money?
4. Why is a bank safer than keeping cash at home?
Key Takeaways
- What a bank is and what it does
- Checking accounts vs. savings accounts
- How banks make money: the lending model
- Why people use banks instead of keeping cash at home