Savings (Leaving Cert Home Economics): Flashcards
📚Flashcards
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15 cards from this deck
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Practise the cards
15 cards from this deck
What is saving money?
What is saving money?
Putting aside a portion of income for future use
Three uses of savings
Three uses of savings
Emergencies, specific goals, long-term financial planning
What is financial security?
What is financial security?
Financial buffer to protect from unexpected costs & emergencies
What is financial stress?
What is financial stress?
Anxiety & worry from money uncertainties & insufficient funds
What are interest earnings?
What are interest earnings?
Additional money from financial institutions for saving with them
Compound interest concept
Compound interest concept
Interest earned on original savings AND on interest already earned
FSCS protection limit per institution
FSCS protection limit per institution
£85,000
Fixed interest rate characteristic
Fixed interest rate characteristic
Stays the same for a set period
Variable interest rate characteristic
Variable interest rate characteristic
Can go up or down
What is an ISA's tax benefit?
What is an ISA's tax benefit?
All interest earned is completely tax-free
Instant access account feature
Instant access account feature
Withdraw anytime, typically lower interest rates
Fixed-term deposit feature
Fixed-term deposit feature
Money locked for set period, higher interest rates
Why save early for retirement?
Why save early for retirement?
More time for money to grow through compound interest
What is Personal Savings Allowance?
What is Personal Savings Allowance?
Allows earning some interest tax-free each year
Name 5 advantages of saving
Name 5 advantages of saving
Security, goals, less stress, interest, retirement prep