Your Money at the Bank: teacher key

How Banks Work, grade 2 edition, written for 2nd grade. Banks keep money safe, lend some of it out and pay savers interest. The FDIC protects people's money if a bank fails.

Read the book. Print this page for the key.

Questions and answers

1. What is taking money out of a bank called?
   • A deposit
   • A withdrawal (answer)
   • A burglar
2. What is a checking account for?
   • Making big loans
   • Growing seeds
   • Everyday spending (answer)
3. What can happen to money kept at home?
   • It always grows
   • It can be lost to a fire (answer)
   • It turns into interest
4. What does the FDIC protect?
   • Jars kept at home
   • People's money in banks (answer)
   • Machines at stores
5. Why does a savings account earn extra money?
   • A jar pays it
   • The bank pays interest on it (answer)
   • A burglar pays it

Words

• deposit: money put in
• withdrawal: money taken out
• interest: extra money
• checking: everyday spending