Saving And Investing

Saving – Putting aside a portion of income for future use.

Investment – Using money to buy assets (e.g., stocks, property) with the aim of earning a return.

Interest – The reward for saving money in a bank or credit union.

• Simple Interest – Interest earned only on the original amount saved.

• Compound Interest – Interest earned on both the original amount and any previously earned interest.

Deposit Account – A bank account where money is saved and earns interest.

Liquidity – How quickly an asset can be turned into cash without losing value.

Risk – The chance that an investment might lose value.

Return – The money earned from an investment.

Dirt (Deposit Interest Retention Tax) – A tax on interest earned from savings.

Stocks (Shares) – Buying part-ownership in a company; potential for high returns but also high risk.

Bonds – A low-risk investment where you lend money to the government or a company in return for fixed interest payments.

Credit Union – A financial institution owned by members that provides savings and loan services.

An Post Savings – Government-backed savings schemes offering secure investment options.

Diversification – Spreading investments across different types to reduce risk.

Inflation – The rise in the cost of goods and services over time, which reduces the value of money.