What are a bank and an account number?

For many years Laziz kept his money in a shirt pocket and on a shelf in the cupboard. One day, while counting it, he lost track and no longer knew exactly how much money he had. So he went to a bank.

What is a bank?

A bank is an institution that keeps people's money, carries out payments and lends. Laziz hands money to the bank, and the bank records it in his name and gives it back when needed.

The important point: at the bank, Laziz's paper money does not lie separately. The bank keeps a record in his name: "Laziz: this much money".

What is an account, and why is an account number needed?

An account is your own personal "notebook page" at the bank: if money comes in it is written down, if money goes out it is written down, and the balance is always visible.

A bank serves thousands of customers. To avoid mixing them up, every account is given its own number. An account number is the address that shows which notebook page the money should reach, just like a home address: if the address is wrong, the letter goes to someone else's door. That is why, when copying the number, you pay attention to every character.

Three basic operations

1. Depositing money: the balance on the account grows.
2. Withdrawing money: the balance falls, and the money is handed to you.
3. Transferring: money goes from your account to another person's account. Paper money does not pass from hand to hand, only two records change: yours falls, theirs grows.

Laziz in one month

When the account was opened, the balance was zero (the figures are hypothetical):

Let us check: total income 2,000,000 + 250,000 = 2,250,000 soums. Total expense 300,000 + 500,000 + 120,000 = 920,000 soums. Balance: 2,250,000 − 920,000 = 1,330,000 soums. It matches the last row of the table.

What is a bank statement?

A document similar to the table above is called a bank statement. It is issued by the bank: it records what came into the account over a certain period, what went out and how much is left at the end.

The statement is the bank version of the document we talked about in lesson 12. If Laziz doubts "did I transfer 500,000?", he looks at the statement and finds the answer.

Why is it easier to track money in an account?

It is hard to remember where money lying at home went. In an account, every income and expense is recorded and the balance can be seen at any moment: the trail of the money's movement stays by itself.

Just do not forget one thing: to manage the money in an account you need things like a password, a card or a signature. Do not give them to strangers.

What to do?

• Check the account number carefully before transferring money.
• Keep the confirmation after you transfer money.
• From time to time compare the balance in the statement with your own notebook.
• The terms of bank services differ depending on the bank and the type of account, so ask the bank itself about them.

In the next lesson

In the fourteenth lesson we will look at what tax is in simple words: why the state collects tax and who a taxpayer is.