How to Teach Banking Basics

by Contributor ; Updated July 27, 2017
Teach Banking Basics

How to Teach Banking Basics. It's incredibly easy to set up a bank account, but optimizing your checking and savings accounts takes some general knowledge. Money-management education should be a part of a teenager's curriculum, but adults need the information as well. You need to do some planning to teach banking basics.

Teach Banking Basics

Step 1

Stress the importance of choosing the right bank and account to make the most of your money. People often choose a national bank because they think it's the best. They don't even consider the benefits of using a smaller bank.

Step 2

Keep the financial jargon to a minimum, but do explain some key terms. Everyone should know how interest rates work and what it means if they are compounded monthly.

Step 3

Explain the benefits of keeping money in a savings account and only transferring money to a checking account a few times each month. Most people don't realize that keeping money in savings earns much more interest at most banks. Be sure to note that most banks only allow a handful of free savings-to-checking transfers each month.

Step 4

Create a fictional set of expenses and income, and then have your students create monthly budgets. Once they start to understand how to make a budget, give them real-world variables like needing extra money for car repair. You need to teach banking basics with examples of real situations.

Step 5

Introduce your students to online banking and mobile banking. It's more important that you go over the costs and security issues related to these services than it is to explain how to use them.

Step 6

Talk about how maintaining a good balance in both a checking and savings account can help build credit. Encourage your students to only spend the money they have. Let them know to avoid using credit lines or overdraft protection.

Step 7

Save some time at the end of your program for plenty of questions. It may also be helpful to bring in a representative from a local bank to explain some other strategies for effective banking.


  • Some of your older students might want to know about investment opportunities. You can tell them how certificates of deposit help fund the bank and work as an investment for the customer.


  • You need to appear independent from any banking institution. Don't let yourself appear as if you're sponsored by one bank or trying to solicit customers.