Analysis: Understanding these terms and what financial literacy is all about helps you to manage your money so your money doesn't manage you
How do you feel about tax and finance? Do you think it's an intimidating, overwhelming maze of lingo and numbers that makes you give up before you even start? Do you hear terms like "APR," "compound interest" or "diversification" and think 'sounds important, I’ll Google it later'. Spoiler alert: you will never Google it later.
Understanding these terms - and what financial literacy is really about – doesn’t need to be a complicated mess of spreadsheets and stress. It’s about grasping the basics and making smarter decisions. If you’re saving for a holiday, a house or just trying to make it to payday without asking ChatGPT 'can you eat instant noodles for three meals a day?', a little knowledge goes a long way.
Why understanding these terms matters
Financial literacy isn’t just about knowing the difference between a debit card and a credit card (but that's a good place to start). It’s about managing your money so your money doesn’t manage you. A lack of financial literacy often leads to poor decisions: high-interest loans, credit card debt spirals or hoarding cash under the mattress instead of letting it work for you.
From RTÉ Radio 1's Brendan O'Connor Show, how to save money and sort out your finances in 2026
People love talking about daily habits that build the body, career and lifestyle you want. We see it all the time in fitness: consistency, discipline, small daily wins. Most people understand this logic when it comes to health. But when you introduce numbers – savings goals, debt repayment, investing – something shifts. People freeze. They get scared. Adding figures creates a mental block that makes money feel impossible.
But here’s the truth: money is just numbers. It’s no different from counting calories or steps. Start small, keep it simple, and don’t let fear of maths stop you. You don’t need to be a financial wizard to improve your situation. What matters is breaking things into manageable steps and engaging with your finances regularly. That habit alone is the game-changer.
The basics (the stuff most of us pretend to know)
Let’s break down a few key concepts.
Budgeting: your financial GPS
Think of your budget as a map. If you don’t know where your money is going, you’ll never get where you want to be. Start by tracking income and expenses. Apps can help, or you can go old-school with pen and paper (just not the calculator on your phone, which will inevitably lead you to TikTok or cat videos).
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From RTÉ Radio 1's Drivetime, are you a loud budgeter?
Savings: paying future you
We’ve all heard "pay yourself first," but what does that actually mean? It’s about setting aside money for future you – the version of you who doesn’t want to rely on a Lotto win. Save consistently, but don’t obsess over rigid rules. Some months are tighter than others, and that’s OK. The key is building the habit, even if the amount feels small.
If you’re not in a position to save right now, that’s OK too. Maybe you need physio, braces, or simply to live a bit. Life isn’t only about future planning; it’s also about the present. In those moments, focus on increasing your earning potential. A course, a skill upgrade, or a career shift can pay off far more than forcing yourself to save €20 and feeling miserable. There’s no one-size-fits-all answer – you have to assess your own situation and build from there.
Debt: the necessary evil
Debt isn’t automatically bad. A mortgage is often an investment in your future, but ongoing credit card debt at 18% interest is the financial equivalent of setting your payslip on fire. Know what you’re signing up for. If you’re already in debt, make a plan and prioritise high-interest balances first.
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From RTÉ 2fm's Laura Fox Show, winter saving tips with financial advisor Eoin McGee
Investing: making your money work harder than you
Investing sounds intimidating, but it doesn’t have to be. Government bonds, for example, are a low-risk way to grow wealth steadily. They won’t make you rich overnight, but they offer stability and modest returns. And no, putting all your savings into cryptocurrency because a guy on Reddit said it’s the future does not count as a strategy.
The state of play with financial literacy in Ireland
In Ireland, we’ve made progress around financial literacy, but there’s still a gap. Surveys consistently show that many adults struggle with basic financial concepts. That’s worrying when you factor in rising living costs, housing pressures and the fact that a pint now costs more than some monthly utility bills (or certainly feels like that).
The good news is that financial education initiatives are improving. Schools are introducing money management topics, and organisations like the CCPC offer excellent resources. The challenge isn’t availability – it’s action. Knowing the information exists isn’t the same as engaging with it.
From RTÉ News, RTÉ Consumer Affairs Correspondent Aengus Cox on the launch of the Government's first financial literacy strategy
As adults, we can’t keep blaming school. Schools didn’t fully teach us nutrition either, yet most of us figured out the basics: eat vegetables, drink water, don’t live on instant noodles. Money works the same way. Waiting for the annual budget and hoping for a windfall isn’t a plan. When it doesn’t happen, the government gets the blame. But nothing worth having comes easy. Want more money? Work for it, educate yourself, or ideally, both.
Practical tips for financial success
If you want to improve your financial position, here are a few simple actions:
Automate your savings: Set up a direct debit on payday. If you never see the money, you won’t miss it.
Educate yourself: You don’t need a finance degree. Read, listen, learn – just make sure your sources are reputable. If someone promises you’ll be a millionaire in six months, run.
Avoid lifestyle inflation: When your income increases, don’t immediately upgrade everything. Save or invest the difference.
Start small: Focus on one goal at a time: an emergency fund, clearing a credit card, or learning the basics of investing.
Think of finance as a game where the goal is to level up. Challenge yourself to save a little more each month, or treat yourself with interest earned rather than money spent. Celebrate progress, however small.
It’s not about perfection. It’s about momentum. Every step you take towards financial literacy builds confidence and reduces stress. And if you’re feeling overwhelmed, remember: even Warren Buffett started somewhere.
Money doesn’t have to be scary or boring. It’s a tool, and like any tool, it takes practice. Start where you are, use what you have, and do what you can. Learning is a process, and each small decision builds confidence over time. Keep going – one choice at a time.
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The views expressed here are those of the author and do not represent or reflect the views of RTÉ
