STEP 1: PEERFORWARD NAVIGATOR Explain the benefits of STUDENT HANDOUT keeping money in a bank. warm-up: where do you keep your money? What's the craziest place you've ever heard of to store cash? For each example below, tell what the drawbacks are for storing your money in each of these places. Under the mattress Drawbacks: In a coffee can Drawbacks: Buried on a tropical island in a pirate's chest Drawbacks: keeping your balance: using a bank Opening a bank account is a great way to keep your budget balanced. Although you don't need to have a bank account to stick to a budget, there are many ways banks can help you implement a successful financial plan. OTHER: Drawbacks: T IT OU our money y g in p e the oes ke avoid How d cks? lp you e h rawba k d n a e b s e in a s of th uence conseq TALK A bank is a for-profit company that offers financial services to its customers. People use banks as a place to keep their money, as well as an easy way to access their money. Banks are a safe place to store money (safer than under a mattress, anyway), because banks are insured by the federal government through an organization called the FDIC. This insurance means that if: ● The local bank branch is robbed and the thief steals $150,000 . . . ● The bank's president skips town with all the money in the vault . . . ● The bank makes a series of bad investments in sub-prime mortgages, and the bank goes bankrupt . . . ● All the banks in your town are wiped out by a natural disaster . . . . . . the money you deposited in that bank will be safe, and will be repaid to you by the federal government. Check cashing places and other non-bank financial institutions are not insured in this way. If you're not sure if your bank is FDIC insured, look for this logo: 458 LESSON 31: MANAGING YOUR MONEY lesson 31: Managing Your Money Property of PeerForward/© 2020 PeerForward; All Rights Reserved.