Making Informed Financial Decisions (Keywords)

Annual Equivalent Rate (AER)

The rate of interest on savings and investments that the consumer earns.

Annual Percentage Rate (APR)

The interest on loans and credit products that the consumer owes.

Return On Investment (ROI)

The amount made on an investment, usually as a percentage.

Capital Gains Tax (CGT)

A tax on the profit from the sale of an asset or investment.

Car loan (PCP)

A structured loan used to finance a car, usually paid monthly over a certain period.

Fintech

The use of technology to deliver financial products and services to consumers.

Central Credit Register (CCR)

A database managed by the Central Bank of Ireland (CBI) that stores the borrower’s personal and credit info on loans €500+. It does not assign a credit rating.

Smishing, Phishing, Vishing

• Smishing: Fake SMS text (S-S)

• Phishing: Fake e-mails

• Vishing: Fake voice calls (V-V)

Central Digital Bank Currency (CDBC)

An electric form of cash for the digital world. It gives consumers the ability to use central bank money digitally rather than just coins and notes.

Cryptocurrency

Digital currencies that are not regulated by a central authority and only exist online.

Stablecoin

Cryptocurrency that are pegged to a currency (USD) or commodity (gold) and can be centralised by a private company.

Blockchain

A system where a record of transactions mostly using crypto is kept across computers and are linked in a network.

Risk tolerance

How willing a consumer is to accept the chance of a financial loss in exchange for the chance of financial gain when making a decision.