1. Saving and Investing 10

2. Saving and Investing Saving Savings are that part of our income that we do not spend. 10

3. Saving and Investing Saving (continued) People save for many reasons:  to have money available to buy something in the future 10

4. Saving and Investing Saving (continued) People save for many reasons:  to have money available for unexpected bills 10

5. Saving and Investing Saving (continued) People save for many reasons:  to have an income when they retire 10

6. Saving and Investing Saving (continued) People save in many places:  banks  building societies  credit unions  An Post 10

7. Saving and Investing Investing Investing means using our money to earn a greater return than is possible from normal savings. People invest their money in different ways:  buying property, e.g. a house to rent out 10

8. Saving and Investing Investing (continued) People invest their money in different ways: (continued)  buying stocks and shares  setting up a new business 10

9. Saving and Investing Investing (continued) Before we invest our money we should ask the following questions:  How much money do we need for the investment?  Is there a risk, i.e. could we lose our money?  How easy is it to turn our investment back into cash?  How much can we earn from our investment and is it worth the risk? 10

10. Saving and Investing Interest Interest is money added to our savings each year Calculating Simple Interest  Simple interest is calculated as a percentage of the original sum saved 10

11. Saving and Investing Example (Simple Interest) Delia Ward has €1,000 saved with Countybank. Simple interest is calculated at 10% each year. How much will she have in her account after 3 years? Solution 10

12. Saving and Investing Example (Simple Interest) Delia Ward has €1,000 saved with Countybank. Simple interest is calculated at 10% each year. How much will she have in her account after 3 years? Solution 10

13. Saving and Investing Example (Simple Interest) Delia Ward has €1,000 saved with Countybank. Simple interest is calculated at 10% each year. How much will she have in her account after 3 years? Solution 10

14. Saving and Investing Example (Simple Interest) Delia Ward has €1,000 saved with Countybank. Simple interest is calculated at 10% each year. How much will she have in her account after 3 years? Solution 10

15. Saving and Investing Calculating Compound Interest  Compound interest is calculated as a percentage of the total amount in our account at the end of each year. 10

16. Saving and Investing Example (Compound Interest) Delia Ward has €1,000 saved with Countybank. Compound interest is calculated at 10% each year. How much will she have in her account after 3 years? Solution 10

17. Saving and Investing Example (Compound Interest) Delia Ward has €1,000 saved with Countybank. Compound interest is calculated at 10% each year. How much will she have in her account after 3 years? Solution 10

18. Saving and Investing Example (Compound Interest) Delia Ward has €1,000 saved with Countybank. Compound interest is calculated at 10% each year. How much will she have in her account after 3 years? Solution 10