KIDDIES BANK

A Financial Institution good for your children

By: Aubrey Cristine Jude B. Neri

SAVINGS ACCOUNT Bank savings accounts show your child some very

important money management elements. These concepts underlie any type of investment decision's she'll make throughout her life. Two types of bank savings accounts exist:

○ statement accounts ○ passbook accounts

Some checking accounts pay interest (these may be called NOW accounts.) However, these accounts aren't designed for savings;

○ They're used to write checks to pay bills○ The interest is only an extra feature of the account

CHECKING ACCOUNTS Children are masters of interrogative sentences; don't be

surprised when your child asks you why he should save money.One, you have to save money for the future.Two, you save money so you can meet your spending goals. 

This used to be called "budgeting", but the word has gained too many negative connotations.

Being well organized, especially in respect to financial information, will remove many of the fears that keep people from investing later in life - particularly the misconception that it is too complicated. 

MORTGAGES

The long-term financing used to purchase property is called a mortgage.

The property itself serves as collateral for the mortgage until it is paid off. A mortgage usually requires equal

payments, consisting of principal and interest, throughout its term. ○ The interest is calculated on the outstanding

principal balance that declines as payments are made.

CERTIFICATES OF DEPOSIT A certificate of deposit is a promissory

note issued by a bank. It is a time deposit that restricts holders from

withdrawing funds on demand.  Although it is still possible to withdraw the

money, this action will often incur a penalty.