How does a bank run out of money?? Isn’t a bank just a place where it’s safer to store your money than in an empty ice cream container in your freezer?? And why is everything in the finance world so freaking complicated??!?

In this episode, Caitlin asks Sara a very simple question: What the fuck is a bank? And Sara answers with a way too complicated answer. AS USUAL.

To make a long story short, banks do stuff with our money to make them more money, but also we need them to do that so they can loan us money for our cars and houses and dream pony farms, and they need us to not allllll need alllll of our money alllll at the same time for the whole system to work.

It kind of makes sense. Kind of. But the important part is that most of us don’t have to do anything different than we’re already doing. You should listen.

Oh! And do you have a passive income story? A success? A failure? Tell us about it in a voice memo and e-mail it to: [email protected]

Ask us your dumb investing and finance questions for Season 2 on our Ask Us page!

This episode was edited by our co-producer Kelly West. Music by Bad Bad Hats and Devmo.