Business: Saving and Investing Money Flashcards
(16 cards)
What is saving?
Refers to that part of our income we choose not to spend.
What are the reasons for saving?
Emergencies, Financial Independence, Major Purchases, Education, Retirement.
What factors should be considered when saving?
Risk, Reward, Liquidity, Taxation, Convenience, Future Benefits, Terms and Conditions.
What does risk refer to in saving?
Will your savings be safe?
What does reward refer to in saving?
Will savings earn interest?
What does liquidity refer to in saving?
Is it easy to get your money and withdraw it?
What does taxation refer to in saving?
Will your interest be taxed?
What does convenience refer to in saving?
Is it easy to make lodgements and withdrawals?
Where can you save money?
Commercial Banks, An Post, Credit Union.
What are commercial banks?
A bank that offers financial services to the general public and to business.
What are demand deposits?
Allow you to withdraw your money on demand.
What are term deposits?
Require you to leave your money in the account for a certain length of time.
What are notice deposits?
Require you to give the bank advance notice of your intention to withdraw money.
What is simple interest?
Interest = Principal × Rate × Time
What is compound interest?
Interest added to total each year.
What is interest?
Is the extra money you earn or pay for borrowing or saving money over time.
