1. Saving and Investing
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2. Saving and Investing
Saving
•Savings are that part of our income that we do not
spend.
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3. Saving and Investing
Saving (continued)
•People save for many reasons:
 to have money available to buy something in the
future
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4. Saving and Investing
Saving (continued)
•People save for many reasons:
 to have money available for unexpected bills
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5. Saving and Investing
Saving (continued)
•People save for many reasons:
 to have an income when they retire
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6. Saving and Investing
Saving (continued)
•People save in many places:
 banks
 building societies
 credit unions
 An Post
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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
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8. Saving and Investing
Investing (continued)
•People invest their money in different ways:
(continued)
 buying stocks and shares
 setting up a new business
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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?
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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
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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
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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.
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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