Back to: Social Studies Primary 5
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RESOURCES PRESERVATION (SAVING)
Saving means putting money aside. People save by depositing money in a bank or investing in company shares or buying properties.
A bank is an institution that accepts money from people in the form of deposits. Banks also lend money to people.
Old Ways of Saving Money
- Burying money in the ground.
- Keeping money in boxes.
- In containers under the bed.
- Keeping money and other valuables in the roof of the house.
Modern Ways of Saving Money
- Thrift and credit society
- Cooperative society
- Banks eg community bank, saving bank, micro credit bank, etc
- Insurance companies
- Mortgage institutions
- Buying shares in big companies
Types of Banks
There are different types of bank. All these banks provide specific services.
- Central Bank: This is the apex bank in the country. It is where government keeps all the money it makes and also pays out money. The Central Bank controls the activities of commercial banks.
- Commercial Bank: They are the most popular types of banks where people can carry out different kind of banking transactions especially for borrowing and transferring money. Examples are Zenith Bank, Union Bank, First Bank of Nigeria, Access bank, etc.
- Development Bank: These are banks which focus on development within a community, state or country. Examples are the African Development Bank and the World Bank.
- Merchant Bank: These banks offer financial services and advice, mainly to companies and wealthy people on how to invest their money.
- Community Bank: Community bank are usually owned and managed by a community or a group of communities. These banks are to provide loans to people who live in rural areas where there are no or few commercial banks.
- Micro Finance Bank: Micro Finance banks give small loans to individuals to set up or grow their own businesses.
Process of Opening an Account in the Bank
The following are the requirements to open a saving account. These are:
- A person less than 18 years cannot open unless with parental consent.
- Identification with national identity card such as driver’s licence, voter’s card or international passport.
- Passport photograph
To open a Current account requires the following
- Identification with a National Identity card such as driver’s licence, voter’s card or international passport.
- Reference letter from persons who already have current account with the bank.
How Family Size and Income Affects Savings
Large family size means
- Many mouth to feed.
- Bigger accommodation to live.
- More clothes for more people.
- More school fees and books
- Less savings
- Low income reduce savings.
- Population increase will reduce job opportunities which also reduce family income and affects savings.
- Low sales from goods reduces income and savings.
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