Expand on budget model through the addition of common long-term financial commitments. Let's suppose you're earning an income. You've made a budget, you've determined what your basic routine expenses are, you've established how much money you wish to save monthly and you've made a list of a few things you'd like to get just for fun. You need a place to keep your money where you can have easy access to it if you need it, and where it will be safe. So you decide to talk to the local financial institution to see what services it can offer you.
People use financial institutions for a variety of purposes.
For those who need a safe place to keep their money, financial institutions offer an ideal home. As discussed earlier, financial institutions offer savings accounts and checking accounts. To make it even easier for people to have access to their money, most financial institutions now offer a special card which can be inserted into a machine and used to make deposits or withdrawals from your savings or checking accounts. These machines are called automatic teller machines because they perform many of the same duties a teller in a financial institution performs. With an ATM card, you can literally bank 24 hours a day.