Checking vs Savings

Checking versus a savings account. Do you really know the difference? How many people are still actually writing checks these days? When should you open these accounts? We answer and discuss these questions and more in season 2 episode 3 of the Cash Kid Podcast. Join us as we dig deeper into building super financial literacy skills in this episode. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

Checking vs Savings Account

What’s up Cash Kids! First, every week we are watching the number of new listeners and we can’t thank you enough for joining us on this journey. Right now, you are listening to season 2 episode 3 of the Cash Kid Podcast where we are focused on learning super financial skills. So, let’s get started!

First a riddle for you.

I love riddles. What kind of book can make money? The answer,coming up.

The Cash Kid Podcast is underway!

Intro tease:

So you’ve got some cash. Maybe from an allowance, or that money your grandma gave you for your 7th birthday. Here you go, sweetie. Thanks, Grandma.

Whatever it is, what are you going to do with it? Spend it, hide it away... or maybe invest it? Let’s start learning how to make that money grow.

Time to learn how to be a cash kid.

Checking vs a Savings Account. Do you really know the difference? When do you need one, or both? And are writing checks the ancient past. Hahaha! Joining me today to break it all down is Mrs. Amy Greer with Cadence Bank.

She is the Director of Digital Transformation where she works to make sure customers have a great experience online or in banking apps, including all types of money movement that we will talk about today.

Thank you, Mrs. Greer, for joining us on the show.

Amy Greer: You're welcome. I'm so glad to be here.

Cash Kid: First off, tell us a little bit about yourself.

Amy Greer: So, my name is Amy Greer, and I have been in banking for over 18 years. And I was with Region’s Bank for a while. And now I've just started a new journey with Cadence Bank here in Birmingham and have always been very passionate about financial literacy and in making sure that the banks can provide tools and technology to help users learn how to manage their financial life.

Cash Kid: All right. We've brought you on to help educate our audience about the difference between a checking and a savings account. Let's start with checking. Tell us basically what that is. Please.

Amy Greer: So a checking account is basically a place for you to store your money at at a bank that can be opened for you by a parent. Really, at any age, they can set it up and they can be joint on your account. But until you're 18. Typically in most states you can't have one on your own.

So if you have if you earn money from chores or different projects you worked on or jobs as you get older and you start to get jobs, anything like that that you earn or even money that you get as a gift for Christmas or various birthdays. It can all be deposited here in the bank. And the good thing at any bank and a checking account is that it's safe there and it's guaranteed.

You can add on other tools to it, like a debit card that allows you to use money in it, like a mobile app that allows you to have access to the funds that sit to the funds that sit in your checking account.

You can then leverage a lot of different ways to send money to people, whether it's through other payment apps like Venmo or PayPal that we all know so much about. Or within the bank account, you can move money out of your checking account for that. You can also use it to buy goods. So there's something that that you need, whether it's food your parents have given you money or you've saved your allowance or something beyond just food it’s something you’ve worked for and you’re ready to purchase it. It’s many different purposes and it’s just a great practice to start learning early on in life.

Cash Kid: What would be some reasons for a kid to open a checking account?

Amy Greer: Well, I think the main reason would be to really get you introduced to learning how to manage money. Until you can have your own account and really see that money that you got, that you earned or that you got as a gift is sitting right here in this bank in this account and it’s safe. And if I go use some of that money for something fun or something, I need to do something I want to donate.

Then you can see what it does to the balance and it triggers it starts in your brain early at an early and important age for you to start realizing what you have left, what you've earned. And the concept of sharing money when needed. And it just helps. It helps develop responsible behaviors.

Cash Kid: Are there fees to consider with a checking account?

Amy Greer: Yes, there can be fees. Actually, that is a very important thing to look into when you're...