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Economics
Saving Makes Cents



Saving Makes Cents
Reading Level
     edHelper's suggested reading level:   grades 4 to 6
     Flesch-Kincaid grade level:   5.57

Vocabulary
     challenging words:    compounding, helping, incentive, income, earning, raking, lawns, mowing, banks, rate, certificate, otherwise, money, receive, exactly, goods


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Saving Makes Cents
By Cindy Grigg
  

1     Income is money that comes in to you. There are lots of ways to get income. You might get paid a regular allowance from your parents. You might receive money for your birthday or holidays. You might have a job like walking dogs, raking leaves, mowing lawns, or babysitting.
 
2     After you receive income, what do you do with it? Do you spend it quickly? Spending is when you pay money to buy goods or services. Do you spend some now and the rest later? Do you save it all? Or do you spend some and save some?
 
3     There are different ways to save money, too. You can just put it away at home and not spend it. Another way to save money is to put it into a savings account at the bank. How does that work, exactly?
 
4     The bank keeps your money safe for you and will pay you interest on it. Interest is a small fee the bank pays you to use your money. Interest is a percentage rate. How much interest your money earns depends on how much money you put into the bank. The more money you save, the more interest you will receive. The bank pays people interest on savings accounts because it wants to encourage people to put money into the bank. Paying interest is an incentive, or a reward, that banks give people so that the bank can use their money. Otherwise, people would just keep their money at home.

Paragraphs 5 to 11:
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