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Money In The Bank

Team AckoFeb 13, 2025

Your kid hears you or people around him use certain words when talking about money or banking. Among those words how do you explain to your kid what 'interest' means? Here’s an activity you can do with your kid which will help him understand this concept.

Contents

Securing Your Child's Future: The Importance of Term Insurance

Requisites: Paper, pencil, play money or real money

Steps:

1. Before beginning the activity explain to your kid why you keep money in the bank. First, to keep it safe and second, to earn more money in the form of interest.

2. Now explain to him that 'interest' is the money that bank gives you for letting them look after your money.

3. Now, on a paper draw two columns. In one column write any amount (e.g. Rs. 20) as in savings account. In the second column make four more columns and show how much interest for 1, 2 up to 4 days. (e.g. Rs.1 for 1st day, Rs. 2 for 2nd day and similarly till 4 days). Keep the amount less as it will be easy for your kid to understand and calculate.

4. Then, show him how to calculate interest for 1 to 4 days by adding interest to the savings account amount. (e.g. 20+1= Rs. 21).

5. Next, you can change the amount and ask him to calculate interest in the way you did. Also explain to him that the more you put and leave for longer time the more interest you will get.

With this activity your kid’s math will improve as well as his knowledge regarding banking activity will also increase and you probably will see him wanting to invest his money in bank.

Securing Your Child's Future: The Importance of Term Insurance

As you celebrate your child’s key milestones in their development, it is also essential to consider their future security and well-being.

A 1 crore term insurance policy provides extensive coverage and ensures peace of mind as you know your family's long-term financial stability is well taken care of. Using a term insurance plan calculator, you can find the right term insurance policy based on your specific financial goals. A proper life insurance plan ensures that your loved ones are not left behind or in a predicament, allowing them to celebrate all the milestones along the way in life.

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Disclaimer: This content is for informational purposes only, based on industry experience and secondary sources. It is not a substitute for professional advice. Please consult a qualified expert for health or insurance-related decisions. Content is subject to change, refer to current policy wordings for specific ACKO details.

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