When they spend , they buy goods and services right now. When they save , they keep part of their income to spend in the future. Discuss the following. Explain that when people put savings in a bank, the bank pays the people interest. This means that the bank gives people a little extra money for saving.
Interest is the price banks pay to encourage people to save at the bank.
Interest is also the price people pay to borrow money. The cubs first kept their savings in Sister's piggy bank and the sugar bowl. Eventually, they put their savings in the bank. Now, when the cubs are at home, they can put what they save in Sister's piggy bank and, after a while, take it to the bank. This is a bank that they can use at home.