4th Grade Math Anchor Charts - Color - FULL PAGE

Understanding

Financial Institutions

A financial institution is an organization that helps people
manage their money. A bank is an example of a
financial institution.

A bank has three basic purposes.

A bank keeps A bank A bank lends
money safe. borrows money to its
money from customers.
• A bank is FDIC its customers.
insured. This means • A bank can lend
that the bank has • When you deposit money to its
made a promise that money into a long- customers. This is
you will get your term savings account, called a loan. People
money back. banks will use that often take out loans
•There are several money to lend out to for things like
different types of other customers in the purchasing a house, a
accounts you can open form of a loan. car, or paying for
at a bank. A checking • When banks borrow college.
account allows you to money from their • When you take out a
deposit and customers they pay loan from the bank
withdrawal money them interest on the they will charge you
anytime you want. A money they borrow. interest on the money
savings account has a This means your you borrow. When you
few more rules about money is making pay back the loan you
depositing and money while sitting in have to pay back more
withdrawing money. the bank. than you borrowed.

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