Page 131 - Key to Social Studies 4
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Let’s Learn More
What Is Interest?
Interest is the cost of borrowing money for a
period of time. When people borrow money from
a bank, they pay a charge.
On the other hand, interest can be an incentive
you get from the bank to encourage you to save
your money there. Banks may have annual
accounts, bi-annual accounts, monthly accounts,
or even daily accounts. The interest may be a
small amount, but saving helps your money grow.
Why Do We Save in Banks?
Interest from a bank is a good reason to
motivate you to save your money. By
saving your money in banks starting
now, you will be able to have a greater
amount of money for something
important like a car or a house.
It is important to save money so you can
always pay for your wants and needs as
you grow older.
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