Banking and Finance Chapter Notes | Social Studies for Grade 4 PDF Download

​Introduction

Banking and finance are essential components of how individuals and businesses manage their money. Banks provide a secure place to store money, save for future goals, and borrow funds when needed. In this chapter, we will explore the role of banks, how they assist people, and why they are vital to our communities. Understanding banking helps us learn how money functions in our everyday lives.

Banks

• Banks are institutions where people can securely store their money.
  • They enable individuals to save money for goals such as purchasing toys, a home, or planning for the future.
• Banks offer a safe alternative to keeping money at home.
  • Depositing money in a bank is referred to as making a deposit.
  • Withdrawing money from a bank is called a withdrawal.
• Banks provide accounts, such as savings accounts, to store money.
  • A savings account allows your money to grow over time through interest.
  • Interest is additional money paid by the bank for keeping your funds with them.
• Banks also offer checking accounts, which make it easy to pay for goods and services.
  • Individuals can use checks or debit cards to make payments from their checking accounts.
• Banks provide loans to people who need to borrow money for things like cars or homes.
  • A loan is money borrowed from a bank that must be repaid over time.
  • When repaying a loan, you pay back the borrowed amount plus extra, which is also called interest.
• Banks ensure the safety of money by using secure vaults and advanced security systems.
  • They use computer systems to accurately track everyone’s money.
• Banks support businesses by providing funds to help them grow or purchase necessary equipment.
  • People can visit banks in person or use online banking to manage their accounts.
• Online banking allows you to view your account balance or pay bills using a computer or mobile device.
• Banks are crucial because they help people save, spend, and borrow money securely.
  • They contribute to communities by providing funds for projects like schools or parks.