 Banking and Financial Planning Checking Account Banks offer many types of accounts. A checking account is an account that you can take money out of using a check or debit card. You can also deposit money in your account. Savings Account A savings account is a place to put money that you want to save and use later. You can open a savings account at the bank. Cash Cash As a noun, cash means bills or coins. As a verb, it means to exchange a check for money. You can cash a check at the bank and get currency or dollar bills for it. Save Save means to keep or collect something. You can save your money by putting it in your savings account. People often save money to make a large purchase, like a car. Goal Having a goal is a good way to save money. A goal is the end result of a plan. If your goal is to save $100 in a month, you might make a plan to save $25 a week. Interest When you borrow money on credit, you have to pay it back plus interest. Interest is the percentage or rate you are charged for borrowing the money. Income Income is the money you earn by doing work. Knowing your monthly income and your monthly expenses will help you budget your money. Expense An expense is the cost of something or the money spent on something. Most people have monthly expenses like groceries, rent, car payments, gas and utility bills. Payment A payment is something you make when you owe money. If you buy things with your credit card, you will have the monthly expense of making a credit card payment. Transaction A transaction is an exchange of money like a withdrawal, payment or deposit. When you put money in the bank or take money out of the bank, you are making a transaction. Balance A balance is a total. You might have an ending balance of $0 on your account after making a payment. Or you could have a balance of $400 in your checking account. Budget Making a budget can help you manage your expenses. A budget is a plan for how you will spend or save money. Following your budget is important. The end