UNIT 4 SPENDING SAVING AND INVESTING

Spending money: People can spend money on consumer products and services. We can use cash, and we can also use debit cards (money leaves the bank immediately) and credit cards (money doesn’t leave our bank account immediately). In this case the bank is lending us money so we have to pay interest to the bank. 

Saving money: Many people use a savings account to save money. They put money into the account, and the bank pays interest on it. Interest is calculated by taking a percentage of the amount of money saved. 

A money box is a box or container where people save money. 

Investing money: When you invest, you buy something with the objective of making more money. When you buy shares, you buy a part of a company. Then if the business does well, you receive some money. 

If you buy bonds, you lend money to the government and they pay you interest. 

Some people buy houses as a way of investing money. Then they rent the house or they can sell the house.