Money Skills

Different people uses their money differently. Some people spend it and some save it. There are different levels into this category.

1. Spending it at once and have only a few dollars left

2. Saving it all at once and hardly spend on it

3. Save it until you get the item you want

The best way to save up money to buy something you want is to count how much you spend monthly/weekly to find out and then subtract it with the amount you get paid and know how long does it take for you to buy something you want. This way, you have an aim and can save the money for something better. You can also avoid spending the money too rapidly. 

What is a bank?

A bank is a business where people deposit and borrow money. People think it's good to keep their money into the bank because they can earn more money and keep it safe. Also you can regularly check online on how much you have and how much you've spent. This was your money would be organised. 

Ordinary account - A credit card will be given so that you can withdraw money conveniently but the money in this account will only earn very little interest.

Savings account - This is good if you want to save money. It will be harder for you to withdraw your money and you might have to pay a fee for withdrawing your money. But for this account, there is a higher interest rate. 

Investment fund - this is when you look at the different stock markets and decide on which company/stock you would like to fund for. But this is a higher risk as you may loose money and the financial stock is unsteady and it's unpredictable. You get to choose if you want to take the low rick or a high risk which determines your interest rate. Low risk has a lower interest rate and high risk has a higher interest rate.

Loan accounts - This is when you can spend a lot and you'll have to pay special fees to set up the loan. There is a higher interest rate and you will have to repay some of the money at least once a month. 

Credit cards - this is when you pay for items with a card and you pay them at the end of the month. If you don't pay the full amount, you will have to pay a much higher interest rate than an ordinary loan. 

The End

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