6th Grade Financial Literacy Practice Test

Bank accounts are safe places to keep money where you can deposit and withdraw, and you can earn interest in some accounts. The safety comes from the bank storing your money and, in many places like the United States, FDIC insurance protects your deposits up to a certain amount if something goes wrong with the bank. Not all accounts pay interest, but many savings or money market accounts do, so your money can grow a little while it’s tucked away.

Borrowing money directly from a bank account isn’t how it works. If you need to use borrowed money, you’d get a loan or a credit line from the bank and repay it over time, separate from simply keeping your money in the account.

Minimum balances aren’t universal either. Some accounts have no minimum, or only a small one, and many student or youth accounts have low or no minimums to help learners start saving.

Finally, bank accounts aren’t just for adults. Banks often offer accounts for students and minors with a parent or guardian involved, so younger people can start saving and learning about money too.