Navigating the World of Finance

Financial literacy is an important life skill. It helps us navigate the world of finances and make informed financial decisions about budgeting, saving and investing, borrowing and planning for the future. Improving our financial literacy will reap benefits at any stage of life.

We’ve teamed up with Claire Cogan of BehaviourWise to bring you tips on improving your financial literacy skills.

Follow these 4 tips to sharpen your financial literacy skills

1. Beat the jargon

Our latest Reflecting Ireland research shows that some associate the world of finance with complexity and jargon, and this makes learning about the products and services available and weighing up the best options more difficult. The There are helpful jargon-busters available at the click of a button:

• CCPC, the Competition and Consumer Protection Commission, offer a financial terms jargon-buster: Jargon buster - CCPC
• PTSB offer Banktionary to help with general financial terms: Banktionary
• PTSB also offer a mortgage-specific jargon-buster for those navigating the world of mortgages: Our Mortgage Jargon Buster

2. Become aware of your financial habits

The best starting point to creating better day-to-day financial habits is to become aware of your current habits. A little time spent tracking your spending might reveal a few surprises, and opportunities to save. There are lots of tools available to help. Most banks, including PTSB, offer online tools to help track your spending and plan a budget. CCPC offer a range of comparison and calculator tools to help you manage your money: Money Tools - CCPC Consumers

3. Think about the long-term

Our latest Reflecting Ireland research reveals differences in how men and women manage their money, particularly when it comes to planning for the long-term. Women are less likely than men to have a long-term financial plan or to have spoken to a financial advisor. Don’t put it on the long finger! Speak to an advisor to understand what decisions you need to make, what options you are available to you, and which may best suit your particular needs.
If you’re a woman, or for the women in your life, check out Financial Literacy for Women, a recently launched Irish initiative dedicated to empowering women to improve their financial literacy and financial wellbeing: Financial Literacy Ireland

45% of men have a clear long-term financial plan vs. 30% of women.

32% of men have spoken to a financial advisor vs. 20% of women.

4. Teach your kids how to manage money

If children learn good lessons about managing money in childhood, it will benefit them later in life. Help prepare them for what’s ahead by guiding them along the way.

• Teach children about the basics from an early age. When they are young show them coins and notes, get them a little piggybank. When it’s visible, it’s easier for them to learn about it.
• Teach children the value of saving for something they want, that it takes time and patience but that it’s worth it in the end.
• When children are older, include them in conversations about household budgeting and cost of living, so that they learn about trade-offs and the decisions we all need to make as adults. This will help prepare them for what’s ahead.
• CCPC Parents Hub has lots of interactive resources you might find helpful in teaching your kids about money. It offers child-friendly lessons and helpful tools on 4 key topics; - needs and wants, resources vs income, expenditure, and how to create a budget. Parents' Hub - Money Matters

Read the full #ReflectingIreland report here