Being good with money is a skill we can learn
March 19, 2024
For Global Money Week (GMW), we’re bringing you a news story every day on all things money. Today, we’re looking at saving and investing.
How do I start saving money?
Persistence and planning are needed to save. It’s normal for savings to feel slow at the beginning, but once your money builds up, it’s very rewarding.
Start by setting a goal – what can you save for? Perhaps it’s a new outfit, then a new phone, a holiday and then college. The sooner you start, the closer you will be to reaching your goal.
Did you know?
Saving €5 per week, will build you over €250 in one year.
How do I manage my money so I can save?
You first need to know how much of your money is coming in, and how much is going out. Think of yourself like a business… or a detective following a money trail. Next see what is:
- Expected (we expected this money, or knew this cost was coming),
or - Unexpected (a surprise gift or an unforeseen cost)
This is the simplest exercise to manage and understand your money. It helps you discover where your money goes, and what you have left to set aside for saving.
Top Tip
Make this exercise a habit.
Complete often, especially when you start your first job.
What’s interest, and how does it compound?
Interest can be good or bad depending on the situation.
- When we save – interest is the return you make for saving your money (from a bank or credit union).
- When we borrow – interest is the price you are charged to use someone’s money (like a bank or credit union loan).
Compound interest is when interest is added to interest over a long period. A great example of compound interest building over time is when we save into a pension.
Time to start saving for your pension?
If you start early, and put a small amount into your pension regularly, you will find that your pension can grow a lot. There are plenty of benefits to starting your pension as soon as you can. You will find plenty of helpful information in our pension explainer videos.
Are all investments risky?
People can invest their money in many different products, each with different risk levels.
Investment Risk level is like chillies found on a menu (the spice level). Some dishes are extra spicy (high risk), while others are mild (low risk). Your choice of food will depend on your taste, and taste can change over time.
Should I invest in Crypto?
Crypto is a high-risk product and is very volatile. Crypto products are largely unregulated so you can lose all the money you put in. Always get financial advice from a regulated source. Learn more with our Crypto videos.
Where can I get more information on saving and investing?
We have a free Regular savings account comparison tool to help you find a savings account that can suit your needs. If you are thinking of building up a nest egg or saving for a rainy day, you can compare your options by using our Lump sum deposit accounts comparison tool.
Check out our videos if you have further questions on saving, investing or pensions.
