Three of a three part series.

OneUnited Bank announced its I Got Bank 2nd Annual Essay Contest winners on August 9, 2012. The contest is designed to promote financial literacy for youth (ages 8 – 12). The winning essays are fabulous. We think you will agree.

Here is one of the three winning essays:

Abshalaam Muhammad

Fort Lauderdale, FL

Age 12

This book is about a ten year old boy named jazz who has over two thousand dollars in his bank account. As Jazz got older his savings grew. But however, it was difficult for Jazz to save his money because his family was always trying to spend it. As I continued to read the book there were many things I learned about such as interest, bounced checks, and a certificate of deposit.

I think interest plays a major role in life as in the book. Interest can motivate people to save money because not only are you saving you are gaining. One thing I found most fascinating in the book about interest was the one percent interest rate. One percent interest rate is a system that is required to give you a dollar per year for every one hundred you save in your bank account. I also learned that when you take a loan from the bank you will have to pay interest.

Did you know that a bounce check doesn’t actually bounce? A bounce check is a check that is insufficient and may bounce back to you not physically but financially. An example of a bounced check is when Jackson wrote checks for money he did not have. The consequences for writing a bounced check were that you owed the bank money and you weren’t able to create a new account until you paid off your debt. My mom may not have much money but she always made sure that she never wrote a bounced check.

Did you know that a CD is not only used for movies or music? A CD or “Certificate of Deposit” is a system where you have another savings account that allows you to get a higher rate in interest. If you agree to keep your savings in a CD for a period of time such as a year the bank will be willing to pay a higher rate in interest. My cousin decided he was going to save money for college so he put his savings in a CD so his money could add up quicker. Wow! I did not know much about a certificate of deposit until I read I Got Bank by Teri Williams.

In conclusion, I think that you should always remember to write checks responsibly and save your money wisely. I recommend this book to anyone who would enjoy reading about banking and ways to save your money.