Financial jargon can be confusing, so we’ve put together common handy jargon buster to help you stay on track of what common financial terms mean.
Gross Pay: This is your total earnings before any deductions (taxes, pension contributions, etc.).
Net Pay: The amount of money you take home after tax, PRSI, and other deductions have been taken from your salary.
Credit Score: A number that shows how reliable you are at borrowing money and repaying it. A higher score makes it easier to get loans or a mortgage.
Interest Rate: The cost of borrowing money or the reward for saving it. It’s usually shown as a percentage (e.g. 1% per year).
Income Protection: A type of insurance that pays you a regular income monthly if you can’t work due to illness or injury.
Life Insurance: Pays out a lump sum to your family or loved ones if you pass away during the term of the policy.
Pension: A long-term savings plan to help you afford retirement. Workplace pensions often include employer contributions too.
Overdraft: A short-term way to borrow money through your current account – but interest can be high if you go over your limit.
APR (Annual Percentage Rate): The total cost of borrowing over a year, including interest and any fees.
You can access additional jargon busters explained on your Employee Financial Wellness portal as well as all the latest financial information.
