The Basics of Banking: Part 1

Financial literacy is crucial to navigating life on many levels, both now and in the long term. Ongoing financial literacy efforts are a key part of Origin Bank’s commitment to our customers and communities.

That’s why we’re launching “The Basics of Banking,” a six-part series designed to educate young people on financial fundamentals. We’ll touch on foundational topics like creating a budget, the difference between debit and credit cards, and the importance of saving.

We encourage kids and parents alike to use this blog series to start a lifetime conversation that fosters lasting financial success.

Financial Institutions 101: What is a bank and why do I need one?

Banks play an important role in the economy, serving as hubs where people conduct their financial business. Banks can open savings and checking accounts for individuals, businesses, and non-profit organizations, but they also issue loans for big ticket items like cars and homes.

Banks can seem intimidating, but in reality, they’re staffed with friendly, knowledgeable professionals driven by the desire to serve. They provide essential services to help you manage and grow your money. At Origin Bank, our team of trusted advisors is available to answer your questions and help you map out a plan to reach your personal goals.

Banking institutions offer convenient options for handling your financial needs. In-person banking at your local branch provides a personal point of contact, while online banking and mobile apps allow customers to bank from anywhere, any time. ATMs offer 24/7 access to check your account balances and withdraw cash, and some even allow you to make deposits.

Banks can also help you avoid costly mistakes, steering you clear of common pitfalls that lead to financial mismanagement. For example, writing a check for more money than is in your account can result in what’s called an overdraft. You may have to pay a fee for each overdraft in addition to the amount you owe. Those fees can add up fast, so talk to a personal banker to learn how to properly track your funds and build a budget that works for you.

Remember that bankers are here to serve as a resource for you and your money. Get to know the people who work at your local banking center and ask them for help in assessing your financial needs. They are available to help and want to see you achieve financial growth and stability.

We believe it’s never too early to build good money management skills. With a solid foundation, kids and young adults can develop the knowledge and habits that help them become independent adults and avoid common financial mistakes.

In our next Basics of Banking installment, we’ll take a closer look at the importance of creating and following a realistic budget. Explore the Origin blog for additional, approachable financial resources.