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Home EconomicsHome Economics Teachers Conference 2011
Paul GrayPaul Gray CCEA Education Manager
Savings OptionsSavings Options
Evaluate a range of saving options (short term and long term) in relation to personal
circumstances, interest rates and flexibility.
Financial Management Issues for the Consumer – Savings Options
Decision-making Should we save?
Where & how will we save?Where & how will we save?
Savings Options?Savings Options?
If you saved £1 a day starting at 18 and got 5% If you saved £1 a day starting at 18 and got 5% interest annually, how much would you have interest annually, how much would you have
by the time you’re 65?by the time you’re 65?
A. £17,166
B. £28,024
C. £44,703
D. £68,306
Savings Options?Savings Options?
Diamond GameDiamond Game
What are the most important factors to consider when choosing a savings account (product)?
Frequency of saving Requirement to save monthly or yearly.
Savings Taxable Will tax be removed on interest?
Level of Risk Is the rate of interest guaranteed?
Interest Rate The amount payable on your savings.
Notice to Withdraw How much notice, if any, must be given?
Account Management
On-line, over-phone or over-counter
Type of Institution Bank, Building Society, Credit Union
Frequency of interest Is it paid annually or monthly?
Initial Deposit Level of initial deposit required?
Factoring influencing Saving DecisionsFactoring influencing Saving Decisions
Age/Life Stage: Teenager
Single
Married (With or without children)
Retired
Employment Status: Employed (permanent/temporary)
Employed (part time/full time)
Student/Training
Unemployed
Story of Mr & Mrs Tener Story of Mr & Mrs Tener
Bill and Penny Tener have been married for 40 years and have both recently retired. They are living on their state pension and a small private pension Anne paid into. Both these pensions provide a moderate income, enough to live on with a bit left over for a few luxuries. They have just sold their house and are now living in a smaller house which is easier to manage. This has given them a lump sum which they would like to save. They would like the money to generate an income that can be used to supplement their pensions.
Finding the Right Saving Account? Finding the Right Saving Account?
Consider the following personal stories and match them to the right savings accounts
(products) using the Diamond Savings Game
Story of Mr & Mrs Moneywise Story of Mr & Mrs Moneywise
They have been married for a year and have just finished paying for their wedding. They had taken out a bank loan to pay for the wedding and were
paying £400 per month. Having paid off the wedding they want to continue paying the money into a bank account. They are hoping to start a
family soon and intend to use some of their savings for this.
Story of Mrs Moneypenny Story of Mrs Moneypenny
Susan is divorced and has one child Cashel who is three. She doesn’t work and is receiving
benefits. She is hoping to return to work once Cashel starts school next year. She used to work in the local hospital as a clerical assistant. She
receives some child maintenance for Cashel and would like to save it for him to have in the future.
Story of Mr Pounds Story of Mr Pounds
Charlie is a widower with three children. He works full time as a Headteacher in the local school. Due to his wife’s life insurance policy payments and his income he wants to save a
significant amount of money each month earning a high interest rate. He is happy to leave it
untouched for years.
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Information & Resource LinksInformation & Resource Links
Paul GrayPaul Gray
Education ManagerEducation Manager
Tel: 028 9026 1200 Ext: 2616 Tel: 028 9026 1200 Ext: 2616
[email protected]@ccea.org.uk
Contact Details
