Zach is back with his second lesson which is all about money.
In today’s lesson, Zach will talk about the different words, or phrases, you might hear when you are in a bank or when you have to make a payment.
When we have money, we usually deposit it into a bank account.
To deposit means to put something into a bank or a safe.
Often people make payments by card or cash, but sometimes we might need to write cheques. A cheque is a printed form which you fill in and use as payment.
Sometimes when we spend too much money, we might go into our overdraft.
Usually banks offer an overdraft option with each bank account. This is a set amount of money which the bank has agreed to lend you. You have to pay it back.
A loan – borrowed money
When we want to buy something big, but we don’t have the money for it right away, we might decide to get a loan. A loan is a set amount of money which you borrow from the bank. Like an overdraft, you must pay this back. Loans often come with interest. Meaning you have to pay back more than you borrowed.
To borrow means to take or use something which you have to give or pay back.
You will only be able to get an overdraft or a loan if you have an income.
If you have a job, you earn money and this is your income.