The JC Business Times Be Savvy: Irish People Not Saving for Their Retirement
In a recent study by the European Commission, it was revealed that Irish people do not save for the future or for their retirement.
Questions 1. What do you think the term ‘savings’ means?
2. Why do you think it is important to save?
3. What might people save for?
1 Savings Savings are that part of income which we do not spend.
This means holding on to and not spending all of our income. An individual/household should save on a regular basis for a number of reasons:
Unforseen
events: save for emergencies or unexpected events, e.g. losing a job.
Furture needs: buy something in the future, e.g. a new laptop.
Interest:
earn additional income on savings (interest).
Future wants: satisfy our wants, e.g. go on a holiday.
Deposit: have a deposit ready to buy a house.
Factors to Consider When Saving
When deciding on where to save, a good consumer should always shop around (see Unit 6). This means they should compare the factors on the next page and save with the financial institution which offers the best options.