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Have you noticed all the piggy banks being used for
odd things around here – flower vases, wind chimes?
Once, these pigs held money from allowances and birthdays.
That was before the pigs' owners realized that their
cash would be better off in a bank account.
Why is a bank account better than a piggy bank? For
one thing, your money is safer in a bank. It's
less tempting to spend money that's out of your
immediate reach, since banks aren't quite as breakable
as pigs. Plus, when your money's in a bank it's
protected, or insured, so you can't lose it.
Best of all, the money you put into a bank account
may grow. That's because some banks pay you a
percentage of the amount you put into your account.
That's called interest.
Take a look at Old Man Foozle. 75 years ago, he put
$10 into his piggy bank. Because of inflation that $10
is worth a lot less today than it was then. 75 years
ago he could have bought a bicycle with that $10, but
now he can barely afford a bell for the bike he doesn't
have.
But if Foozle had put that money into a savings account
with 3% interest, his $10 would have grown to $92 today!
Sound too good to be true? Let's climb on to
Interest Glacier to learn more.
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