2. Bank saving account shows your child some every important money
management element. these concept underlie any type of investment
decision she’ll make throughout her life .
Two types of saving account exist
Statement account
Passbook account
Some checking account pay interest ( these may be called now account ).
However, these account aren't design for saving;
There use to write check to pay bills .
The interest is only an extra feature of the account.
3. Most of us are well aware of importance of
creating budget and plants for our personal
finances.
However, sometimes we forget that we also
need to teach our children about planning and
budgeting .
More from investopedia
Your first checking account
The evolution of banking
4. The long-term financing use to purchase
property is called mortgage.
The property itself serves as collateral for the
mortgage until it is paid of.
A mortgage usually requires equal payment,
consisting of principal and interest, throughout its
term.
The interest is calculated on the outstanding principal
balance that declines as payment are made.
5. A certificate of deposit is a promissory note
used by a bank.
It is a time to deposited that restrict holder from
withdrawing funds on demand.
Although it is still possible to withdraw the
money, this action will often incur a penalty.
