Saving

• Reasons for saving money:

  • Purchase something in the future, such as a new car or a deposit for a house
  • To have money available for unexpected bills (emergency fund) such as a car repair bill
  • To provide an income for ourselves when we retire
  • To pay for an event in the future, such as a wedding
• When deciding to save money in a financial institution, we look at:

  • The purpose for why we are saving
  • The potential gain available (interest)
  • The potential risk to our savings
• Why save with a financial institution?

  • Safety - our money is safer in a bank than with us, as someone can steal it from us. Even if the bank experiences theft, the Central Bank's Deposit Guarantee Scheme replaces savings up to €100k.
  • Interest - we earn interest on savings in a financial institution. We cannot earn interest saving money at home.
  • Credit rating - saving regularly with a financial institution can build up a good reputation and a good credit score with them.
• When investing money, we should consider:

  • How much money could we make? Is it better to put the money in a bank?
  • How big is the risk in investing? Will we lose the money we put in?
  • Will we have to pay tax (DIRT) on the investment?
  • How quick can we turn our investment back into cash?