Savings Cents make Euros Next Slide

Aim of the Lesson ► To help students understand what savings are, the necessity of savings in certain situations, different kinds of savings, the advantages of savings and saving for a pension. Previous SlideNext Slide

What are savings? ► Saving occur when people do not spend all their income? ► This can be done deliberately or just happen. Previous SlideNext Slide

Why do people save? ► Because they have too much income. ► In case of emergencies. For example health problems. ► For something in the future. For example their children’s education. ► For something that they really need, but cannot afford at the moment and they know to buy the item using credit is too expensive. Previous SlideNext Slide

What can people do with their savings? ► Put it under the bed and hope the thief does not visit. ► Put in a current account. Problem no interest and the bank will charge them a fee for looking after it. ► Put it in a deposit account. Interest, but will the interest rate be as high as the inflation rate in the country or will their money loose it’s real buying power. Previous SlideNext Slide

Instalment Savings ► Here the saver puts in a certain amount every week or every month for an agreed period. Previous SlideNext Slide I save a regular amount and my piggy gets fatter and fatter.

Interest ► Most banks pay you for the privilege of having your money provided it is in a deposit account. This is known as interest. ► Fixed interest means the rate of interest is agreed for a period in advance and even if the normal interest rates that most banks are giving goes up or down the interest rate this saver gets are fixed. ► Variable interest rates change and can go up or down. Previous SlideNext Slide

DIRT (Deposit Interest Retention Tax) ► This is the tax collected by the government on interest earned on money invested in financial institutions. ► It is collected by the financial institution so the saver never gets it. Previous SlideNext Slide

Post Office Savings rs/Money+Matters/Savings+and+Investments/ Click here to learn about saving schemes offered by An Post Previous SlideNext Slide

Security of Capital ► Most customers will be concerned that the money, they invested known as their Capital will be secure. Previous SlideNext Slide

How quick can you get access to your money? ► The longer a saver agrees to give their money to the bank the greater the interest. ► If the money is on demand, meaning the saver can go an ask for it any day, the interest rate will be low. Previous SlideNext Slide

Larger the amount of money ► Some banks offer a greater rate of interest if the amount lodged is a large amount. I am a millioner, so I have lots of money to give the bank and they will give me loads of interest. I have very little money, so banks will give me a lower rate of interest. Previous SlideNext Slide

Benefits of savings to the country ► Without savings banks would have no money to lend to people, who want to borrow. ► Less jobs as large businesses would not be able to borrow to build factories etc. Previous SlideNext Slide

To open an account in Ireland at the moment you need: ► Current Photo Id (For example passport or driver’s licence.) ► Proof of residence (For example an ESB bill.) Why do you think these are necessary to open an account? Previous SlideNext Slide

Pensions ► When people save for their old age, they are saving for their pension. ► The government encourages this because if people have enough money to pay for their expenses in old age, the government will not have to help them. ► The earlier one starts to save for a pension the better, as the more they will have and the pension company will have had the money for longer and hence will have been able to make more money with it. Previous SlideNext Slide

Contributory Pensions ► In Ireland at the moment the governmemt will only give a pensuion ► You may qualify for the Old Age Non- Contributory Pension Previous SlideNext Slide

Old Age Non-contributory Pension In Ireland at the moment the government will only give one a non contributory pension if: ► You are aged 66 or over. ► You do not qualify for an Old Age Contributory Pension. ► When a means test is done on your present income and the value of property you have you are below a certain level. Previous SlideNext Slide

Savings The End Previous Slide