Learning money management

On Thursday, October 8, 2009, Ms. Moore decided to let us visit Commerce Bank to gain hands-on experience about managing money. We (Tally and Karla) had been reading a book in our small group called Kids Make a Difference: Kids Manage Money by Ellen Keller. We learned many new and interesting facts about money, banks, and businesses. For example, did you know that the word "bank" comes from the Italian word "banca" which meant benches? The bankers in Italy sat on low, wooden benches and that's how we came up with the term "banks"! While reading our text, we brainstormed different product- and service-oriented businesses kids could do to earn money and save. Tally decided she would like to have a dog washing business and Karla wanted to have a tutoring program. We designed advertisements for our business following the key points that were listed in our book. It is important to give good information so our customers will know what we do and why they should choose us.

We learned about other ways to save and manage money besides owning a business. Certificates of deposit (CDs) and savings bonds are other ways to save money and make money at the same time. CDs are a better way to save because they do not take as many years to mature (end so you can get your money out). A savings bond can take up to 17 years just to make an extra $25.

We had many questions that we wanted answered after reading so Ms. Moore called Commerce

Bank and arranged for us to visit with Carmen Moore, the branch manager. Carmen answered many questions for us and discussed many of the vocabulary words we had been reading about in class such as interest, bank statement, FDIC, and penalty fees. We really wanted to know how the bank made money to pay their workers. We were worried that they might take money that people put in accounts to save and pay their workers. Carmen said the bank has money they invest and they use the interest they earn to pay the workers! What a relief! Carmen also talked with us about CDs. Karla wondered if she could open a CD, but Carmen responded that you need $1000 to start one and you have to be 18. However, Karla's parents could open one for her.

Tally knew quite a bit about stocks so she had questions about if the bank invested in their own stock. Carmen said they do because it's a great way for the banks to make money. Banks also make money when different businesses open accounts with Commerce Bank to manage their money. It's very important for the banks to have FDIC because that means that if something happens to your money, the bank can give you a certain amount of it back. Ms. Moore said that if we didn't see an FDIC sign at the bank then we should get our money out of the bank and run! Karla was going to make sure that her mom's bank has this sign so she can be safe!

After asking questions and talking with Carmen Moore, she took us on a tour of the branch. We saw a huge safe where people can put their deposits from businesses. We also were allowed to go in the back where the people work. We watched a worker called a "teller" run the drive-thru. It was neat! They have these canisters that shoot into the bank with the people's money. You have to be careful though because the doors shoot open and you could get hit easily. We also went into the back room to look at the safety deposit boxes. These are really, really, really long boxes that store things people want to keep safe like jewelry or even important papers. When we were finished with our tour, Carmen gave us pens, beach balls and, our favorite gift of all, FORTUNE COOKIES! We had a great time and are excited to start managing our money! Thanks, Carmen!

Written by Karla, Tally, and Ms. Moore