Talking About Finance

 

"That's great!  So let us talk about some words related to finance. Example budget. A budget is an estimation of your income and expenses. It allows you to track and plan how you will spend your money, which can help you make financial decisions around paying off debt and saving for retirement."

Vocabulary

financial literacy           /fai·nan·shl * li·tr·uh·see/ the ability to understand financial skills

budget                           /ˈbəjət/ n. an estimate of income and expenditure for a set period of time

debt                               /det/ n. money that is owed or due 

credit                            /ˈkredət/ n. the ability of a customer to obtain goods or services before payment.

mortgage                     /ˈmôrɡij/ n.  an immovable property that is used as collateral to avail a loan.   

Expressions

It allows me/you...

I want to...

Conversation Practice

The conversation will focus on planning how to budget income as well as learning words related to finance.

A: What are you up to nowadays?

B: I want to learn financial literacy because I  want to support my household financially. 

A:     Will you be given a licensing exam?

B: I will be taking the Financial Planner License test.

A: Will you be selling financial documents?

B: No, I just want to study.

A: Can you tell me about the lesson?

B: I am studying money, which is important for me. It allows me to learn more about how to manage my finances.

A:    That's great!  So let us talk about some words related to finance. Example budget. A budget is an estimation of your income and expenses. It allows you to track and plan how you will spend your money, which can help you make financial decisions around paying off debt and saving for retirement.

B: What is credit?

A: Credit is what's given when a lender grants a borrower money in exchange for later payment. The amount of credit on your credit card is a good example.

B: I read the word debt. What is it?

A: Debt is money that's borrowed and needs to be paid back. For example, your mortgage is a debt you owe to the bank.

B: I see.

A: How do you budget your salary?

B: I budget for household and personal expenses.

A: Do you use a ratio to budget, like 20 percent for savings and 80 percent for expenses? Budgeting the 80% into 20% personal expenses and then 80% for household expenses.

B:     I understand. Good idea on the budget.