Checking vs Savings
Checking is for money you spend soon, savings is for money you keep.
The idea
A bank is a safe place to keep your money, and it keeps a careful record of every dollar that is yours. A checking account is for money you spend soon, so money goes in and out of it often. A savings account is for money you are keeping for later, and many savings accounts pay you a little extra called interest for leaving it there. Banks also lend out some of the money people deposit, which is one way they earn money themselves. 🏦
Words to know
- bank
- A business that keeps your money safe and keeps track of how much is yours.
- checking account
- An account for money you plan to spend soon.
- savings account
- An account for money you are keeping for later.
- deposit
- Money you put into an account.
- interest
- A little extra money a bank may add for keeping your savings there.
Try it — no account needed
True or false about banks and accounts?
A checking account is meant for money you spend often.
In the full lesson
- 1True or false
- 2Put it in order
- 3Make the call
Vine has 107 lessons like this one, each written three ways so a 7-year-old and a 17-year-old both get a version that fits.
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