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How can we save and spend money?
Living in society
Ways of
saving
Many people
save
money. They do this for different reasons: to buy
a house or car, to go on holiday, or to pay for a course.
1
Ask and answer questions about saving with a partner.
Are you saving money? How do you save money? What are you saving for?
G
E T T I N G S T A R T E D
Investing money
When you
invest
, you buy something with
the objective of selling it later for more
money. People often buy
shares
or
bonds
as an investment. When you buy shares,
you invest money in a business. Then if
the business does
well, you receive
some money. You
can also sell your
shares. Bonds
are shares in the
government of
a country. If you
buy bonds, the
government pays
you interest.
Money box
A money box is a box or container where
people save money. You can put money into
a money box whenever you want. Then, when
you need the money, you can take the money
out. Unlike a bank account or bonds, a money
box doesn't pay you interest.
Savings account
Many people use a savings account to save money.
They put money into the account, and the bank pays
interest
on it. Interest is a small quantity of money.
It’s calculated by taking
a percentage of the
amount of money saved.
For example: a savings
account with €100
and 5% interest would
receive €5 interest each
year. A savings account
doesn’t have a debit or
credit card, so it’s more
difficult to take money
out of it.
