A look at the FDIC’s new
Internet site for kids, teachers and parentsThis Little Piggy Goes
Into Cyberspace
We’d like to introduce you to one of your child’s new teachers — Carmen
Cents. We think she’s doing an outstanding job teaching children around the world the
basics about the FDIC and the American banking system. Carmen is actually a cute, bouncing
pig — really a piggy-bank — featured in the FDIC’s new Internet site for
kids called the “Learning Bank.” The FDIC knows it isn’t easy making
banking, bank regulation or deposit insurance appealing to youth, but so far this
educational site for students in kindergarten through grade-12 is a hit.
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To find the Learning Bank on your
computer, click on Carmen Cents’ picture. Once you’re there, you’ll find
answers to common questions from kids (like “What is the FDIC?” and “What
does a bank do with my money?”). History buffs will be able to trace key financial
events going back to the 1700s. You’ll also see neat pictures from olden days,
including one of President Franklin Roosevelt signing the law that created the FDIC in
1933. Children and adults also will have a chance to e-mail questions and comments to the
FDIC, and to link directly to the Internet sites of other government agencies. |
We hope you’ll get a chance to visit
our Learning Bank soon. Until you do, here’s a look at some of what it tells kids
about how the FDIC and banks serve the American people.
“What is a Savings Account?: A savings account is where to put
money you don’t want to spend right away. A good thing about a savings account is
that it makes it easy to save money, because you know it’s safe, and you can get in
the habit of bringing money, perhaps part of your allowance, to the bank each week. With
regular deposits, and the interest you’ll earn, it doesn’t take long for savings
to grow.”
“What is a Checking Account?: A check is like a note that says:
If you go to my bank (or have your bank go to my bank), they have my permission to give
you this much money out of my bank account. You’ve probably seen your parents write
checks at stores or at home to pay bills. Checks are especially useful when you have to
mail money to someone, since mailing cash is risky because anybody could take the cash and
use it. Only the person who the check is made out to can cash a check. If you write checks
for more money than you have in your checking account, the bank will not pay them. This is
called “bouncing a check,” because your bank will “bounce” your check
back to the person you wrote it to, instead of giving them money.”
“What Does a Bank Do With My Money?: A bank collects money from
people or businesses that want to keep their money in a safe place. The bank then lends
this money to people or businesses that require additional money to meet their current or
future needs. So, when you deposit money at your local bank, the money does not remain
locked away in the bank vault. Instead, the bank lends your money to others in your local
community. Whether it is to assist your parents in the purchase of your home or to help
your neighbor start his own business, these loans benefit your entire community.”
“What is the FDIC?: The FDIC’s biggest job is insuring the
savings of millions of Americans in all the FDIC insured banks across the country, even
the savings of kids. The FDIC also visits banks on a regular basis to make sure they are
following the rules they need to. For example, one rule banks have to follow is called the
Equal Credit Opportunity Act. It says that a bank can’t refuse to loan money to
someone just because of his or her color, religion, national origin or for a number of
other reasons.
