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Financialliteracy4
Interest
Interest is money you pay to borrow money or
money the bank pays you when you keep your
money in a savings account.
Juan saves $20 a month in his saving account.
Month Deposit Interest Total Savings
January $20 $0.10 $20.10
February $20 $0.10 $40.20
Advantages of Piggy Bank Disadvantages of the Bank
Difficult to put moneyEasier to put money
Disadvantages of Piggy Bank
Money does not earn interest
Easier to spend money
Money can be lost or stolen
Advantages of the Bank
Money earns interest
Difficult to spend money
Money is safer

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Financialliteracy4

  • 2. Interest Interest is money you pay to borrow money or money the bank pays you when you keep your money in a savings account. Juan saves $20 a month in his saving account. Month Deposit Interest Total Savings January $20 $0.10 $20.10 February $20 $0.10 $40.20
  • 3. Advantages of Piggy Bank Disadvantages of the Bank Difficult to put moneyEasier to put money Disadvantages of Piggy Bank Money does not earn interest Easier to spend money Money can be lost or stolen Advantages of the Bank Money earns interest Difficult to spend money Money is safer