Teaching your kids the difference between a Checking Account and a Savings Account - By Peter Geckeler
If you fall into the “Generation Y” or “Millennial” category you may remember the joy of walking into a classroom and seeing that you would be watching a “Bill Nye the Science Guy” video. One excerpt in the video always started out with the phrase “DID YOU KNOW….” which was expressed in a loud, animated voice. Bill would then proceed to teach the viewer a simple but interesting science concept. I tell you this to preface this section of our next gen blogs, which will be focused on introducing simple, but important financial topics to our young readers. So without delay –
DID YOU KNOW….
The difference between a checking account and savings account at the bank?
A checking account allows you to put in and take out your money from the account freely. These accounts are designed for you to make regular purchases and cover everyday expenses using your debit card. Checking accounts rarely earn much interest at all, but give you the freedom to take out money or add money whenever you want.
In contrast to the checking account, a savings account is designed for long-term money storage. Savings accounts earn interest on the money you put in, defer your spending (Delayed Gratification) and hold funds for specific purposes. Savings accounts are not built to withdraw money freely, and usually have fees if you pull out too much money in a specific amount of time.
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