What are banking practices?

Banking practices are the rules and habits that banks use to help people save money, borrow money, or even grow their money like a plant in the sun.

Imagine you have a piggy bank at home, every time you get some coins from your pocket, you put them inside. That’s like saving money. Now, if you want to buy something big, like a toy that costs more than all your coins, you might ask your parent for more money, that's like borrowing.

Banks are like bigger piggy banks, but they also help grown-ups and kids alike with special tricks, like letting you put your money in one place so it can grow over time, or even let you take out some money when you need it without having to wait until next week.

• If you save your coins regularly, the bank might give you a little extra, kind of like a thank-you note from the bank.
• If you borrow money and don’t pay it back for a long time, the bank might ask for more than just what you borrowed, similar to when you forget to return a toy and have to bring an extra one next time.

Banks use these rules to help people manage their money in fun and useful ways.