Year 8 - L3 - Finance 1

Why is storing money in your house a bad idea?

• You can access it instantly
• You don't have to give notice to withdraw it.
• It could burn down or you forget about where you hid it.

Where is a safe place to store your money?

• Bank, building society or credit union.
• A bank in Iceland.
• A Christmas hamper company.
• A piggy bank

Banks store money and lend money. True or false?

• true
• false

Savers earn interest. True or false?

• true
• false

Borrowers pay interest on their loans. True or false?

• true
• false

A current account is used for what?

• Storing our money and everyday transactions
• Saving money
• Long term borrowing of money

A savings account earns interest on the balance, true or false?

• true
• false

An overdraft is . . .

• Short term loan for small amounts of money
• Long term loan for large amounts of money
• Short term loan for large amounts of money
• Long term loan for small amounts of money

Depositing money into an account will increase the balance

• true
• false

Withdraw

• Keeping track of money

• Taking money out of bank account

• Putting money in bank account