Understanding money doesn’t have to be complicated. Whether you’re managing your first job, saving for a home, or just trying to make sense of all the terms banks use, this guide breaks down the essentials — in simple Irish terms.
Here are 20 key financial concepts every person in Ireland should know:
1. Income
This is the money you earn — from your job, social welfare, pensions, or other sources. Your gross income is what you earn before tax, and your net income (or “take-home pay”) is what’s left after taxes and deductions.
2. Tax
In Ireland, income tax is collected by Revenue. You’ll also pay USC (Universal Social Charge) and PRSI (Pay Related Social Insurance). Your payslip will show how much goes to each.
3. PPS Number
A Personal Public Service Number is your unique ID for tax, welfare, and public services. You’ll need it for jobs, social welfare, and opening some financial accounts.
4. Budgeting
A budget is a plan for your money. It helps you see what comes in and what goes out each month — so you can avoid overspending and plan for savings.
5. Savings
This is money you put aside for the future. Many people in Ireland use credit unions, banks, or online savings accounts. Even saving €20 a week adds up.
6. Interest
Interest is the cost of borrowing or the reward for saving. When you borrow, you pay interest; when you save, you earn interest. Always check the APR (Annual Percentage Rate) for loans and the AER (Annual Equivalent Rate) for savings.
7. Credit
Credit means borrowing money with the promise to pay it back later. This could be a loan, a credit card, or an overdraft. Used wisely, credit can help — but it can also lead to debt if not managed carefully.
8. Debt
Debt is money you owe. It’s normal to have some, like a mortgage or student loan, but high-interest debts (like credit cards) should be paid off quickly.
9. Credit Score
This is a number that shows how good you are at repaying loans. Banks and lenders in Ireland check your record through the Central Credit Register before giving you credit.
10. Loans
A loan lets you borrow money now and repay it later with interest. Common types include personal loans, car loans, and mortgages. Always compare lenders and check total costs before signing.
11. Mortgage
A mortgage is a long-term loan used to buy property. In Ireland, most mortgages last 20–35 years. You’ll need a deposit (usually 10–20%) and proof of steady income.
12. Renting vs. Buying
Renting gives flexibility; buying builds ownership. The best choice depends on your income, savings, and long-term plans. Remember to factor in property tax, insurance, and maintenance if buying.
13. Insurance
Insurance protects you financially if something goes wrong — car accidents, illness, or home damage. In Ireland, car insurance is compulsory, and health insurance is optional but common.
14. Pension
A pension is a fund you pay into during your working life to provide income when you retire. Ireland has state, occupational, and personal pensions. Starting early makes a big difference.
15. Inflation
Inflation means prices go up over time. When inflation rises, your money buys less — so keeping all your savings in cash might not always be the best option.
16. Investing
Investing means putting your money into things like shares, funds, or property to grow over time. It carries risk, so always learn the basics or seek advice before investing.
17. Scams & Fraud
Be alert for fake texts, emails, and calls pretending to be from your bank or Revenue. Never share PINs, passwords, or one-time codes. Use verified contact details to check anything suspicious.
18. Consumer Rights
As an Irish consumer, you have strong rights. The Competition and Consumer Protection Commission (CCPC) helps people understand contracts, refunds, and fair lending.
19. Emergency Fund
This is money saved for unexpected costs — like car repairs or job loss. Aim to save 3–6 months of living expenses if possible.
20. Financial Planning
This means setting goals for your money — short-term (like paying off credit cards) and long-term (like buying a house or retiring). A financial advisor or credit union can help you make a plan.