Week 5: Savings and investments

Introduction

Why do people save? Link savings to events in the life course. Understand savings rates and savings products. The choice between fixed and variable rate savings. See how the internet has changed the savings market.

This week you explore the many different ways of saving and investing. Martin explains the differences between the products, including the returns they provide, and the risks you take on when investing in them. You also have the chance to link to a savings calculator to see how your savings grow in different scenarios.

Download this video clip.Video player: ou_futurelearn_money_vid_1012.mp4

Show transcript|Hide transcript

Transcript

Martin Upton

Hello again.

Two crucial parts of financial planning are savings and investments. Putting money aside allows us to fund a major purchase like a house, or to provide income for retirement. They also can be used to pay for unexpected bills, like car repairs. You might consider this 'saving for a rainy day'.

This week, you'll be asked to consider the impact of inflation, tax and interest on your savings and investments, as well as the risks involved.

We'll look at how different investments have performed over the long run, and we'll look at how the government tries to encourage us to save money. The 2014 budget statement unveiled substantial changes to the savings arena to encourage people to put more money aside for their future.

This week, then, we'll not only guide you around the superstore of savings and investments, we'll also point out what you need to know about the different products. You'll see there's more things you can do with your spare cash than just leaving it in your bank account.

Have a great week.

End transcript

Download

 

This course is presented with the kind support of True Potential LLP.

The True Potential Centre for the Public Understanding of Finance (True Potential PUFin) is a pioneering Centre of Excellence for research in the development of personal financial capabilities. The establishment and activities of True Potential PUFin have been made possible thanks to the generous support of True Potential LLP, which has committed to a five-year programme of financial support for the Centre totalling £1.4 million.