Tag: finance

Trump Wants to End Penny Production

B2 – Upper Intermediate

President Donald Trump recently proposed ending the production of the penny, reigniting a long-running debate. Supporters argue that eliminating the one-cent coin could save the government money and reduce inefficiencies, while opponents believe it could lead to rounding issues and impact charitable donations. Is it time to say goodbye to the penny, or does it still have a place in our pockets?

Watch the video and be able to answer the questions below.


Vocabulary Questions:

  1. What is “seigniorage“? “The coin has had a negative seigniorage for almost 20 years and part of the reason for the increased production cost is the metal, in this case, zinc, has gotten more expensive.” Use the word in a sentence.
  2. What does the phrase “round off ” mean? “Canada rounds off all cash transactions to the nearest 5 cents interval.” Make a sentence using the phrase.
  3. What does the word “mint” mean here, “Last year, the mint lost more than $85 million to make more than 3 billion pennies.“? Use the word in a sentence.


Discussion Questions:

  1. Do you think eliminating the penny would have a significant impact on everyday transactions? Why or why not?
  2. Should sentimental or historical value be a factor in deciding whether to keep the penny? Explain.
  3. Would rounding prices to the nearest nickel be fair to consumers and businesses? Explain.
  4. How do the costs of producing pennies compare to their actual usefulness in today’s economy?
  5. What potential effects could removing the penny have on low-income individuals and cash-based transactions?
  6. How have other countries handled getting rid of low-denomination coins, and what lessons can the U.S. learn from them?

How Banks Magically Create Money

B2 – Upper Intermediate

Everyone was curious about the origins of money and how it flows through our economy. Did you know that a government facility in Washington, DC, converts paper into cash every hour of the day in order to meet demand? But there’s a catch: most of the money exists digitally.

See the video below to learn more about how banks magically create money.

Vocabulary Questions:

  1. Explain “type into existence“. “Before it ever reached your bank account, it changed hands countless times, passing through people, governments and businesses all after being simply type into existence.”  Create a sentence using this term.
  2. What does “hard to come by” mean? “To make transactions easier, people started to pay using more commonly used items like cattle, grain and salt. Everyone needed these things, but they were hard to come by and that’s what made them valuable.” Use this idiom to make your own sentence.
  3. What is the meaning of “intrinsic value“? “The paper itself has no intrinsic value but it became as good as gold.” Give two (2) synonyms or similar expressions and use ‘intrinsic value’ in your own sentence.

Discussion Questions:

  1. How does money work and evolve?
  2. When did the entire idea of money started to change?
  3. What’s the bank role in money processing?
  4. What does “new money” mean?
  5. How do banks actually generate revenue?
  6. What are “bonds,” and what role do they play in the banking system?

Wildfire Victims Face Insurance Crisis

B2 – Upper Intermediate

Wildfire victims are facing a growing insurance crisis as rising disaster risks make coverage harder to obtain and more expensive. In wildfire-prone areas, many homeowners are seeing their policies canceled, premiums skyrocket, or insurers pull out altogether. As climate change fuels more frequent and severe fires, the insurance industry is struggling to keep up, leaving victims with fewer options for rebuilding their lives. This crisis raises urgent questions about the future of home insurance, government intervention, and how communities can better prepare for wildfire risks.

Watch the video to learn more and be able to answer the questions below.


Vocabulary Questions:

  1. What is the meaning of the phase “pull back“? “With insurers pulling back, thousand of California homeowners have been left without coverage.” Make a sentence using the expression.
  2. What does “moratorium” mean? “The California Insurance Commissioner is issuing a one-year moratorium to protect homeowners.” Use the word in a sentence.
  3. What does the word “cascade” mean? “The report suggesting the insurance crisis could lead to a housing one with echo of 2008, saying this is predicted to cascade into plunging property values in communities where insurance becomes impossible to find or prohibitively expensive.” Use the word in a sentence.

Discussion Questions:

  1. Should the government step in to provide insurance assistance for wildfire victims, or should it be left to private insurers? Why?
  2. Do you think insurance companies are justified in raising premiums or dropping coverage in wildfire-prone areas?
  3. Is it fair to require homeowners in high-risk wildfire zones to pay significantly higher insurance rates?
  4. How can insurance companies balance financial risk while still providing coverage for wildfire victims?
  5. How should communities and governments prepare for the increasing risks of wildfires and their impact on home insurance?




Financially Smart Ways to Start the New Year


B2 – Upper Intermediate

As we step into 2025, it’s time to reassess and strengthen your financial strategies. Here are six actionable tips to help you navigate 2025 with greater financial confidence and security.

Read the article to know more about the steps to help you achieve financial wellness this year.

https://www.morganstanley.com/articles/financial-planning-new-year-financial-resolutions

Vocabulary Questions:

  1. What does “liquid account” mean? A general rule of thumb for an emergency fund is saving three to six months’ worth of living expenses in a safe, liquid account.” Use it in a sentence.
  2. What does “asset consolidation” mean? “Think about revisiting your asset allocation, or how your investments are split within your portfolio amongst equities, fixed income and cash.” Use it in a sentence.
  3. What does “market volatility” mean? “If recent market volatility has caused your portfolio investments to stray away from your target allocation, it may be time to rebalance.” Use it in a sentence.

Discussion Questions:

  1. What are some areas in your current budget where you feel you could cut back or reallocate funds to improve your financial health this year?
  2. Do you already have an emergency fund in place, or is building one a priority for you in 2025? How do you plan to achieve this goal?
  3. Have you revisited your investment portfolio recently? What factors do you consider when deciding how to diversify or adjust your investments?
  4. What are your top financial goals for 2025, and how do you plan to stay motivated to achieve them?

Debt Snowball vs. Debt Avalanche Method

B2 – Upper Intermediate

To tackle debt efficiently, two popular approaches are the debt snowball and debt avalanche methods. Ultimately, the choice depends on your financial goals and personality. If you’re motivated by quick successes, the snowball method could keep you on track. If minimizing interest and reducing total repayment time is your priority, the avalanche method may be a better fit.

Read the article to know more about the difference between these two methods.

https://www.experian.com/blogs/ask-experian/avalanche-vs-snowball-which-repayment-strategy-is-best/

Vocabulary Questions:

  1. What does “variable interest rate” mean? “For example, if you used a cosigner for a student loan or have a loan with a variable interest rate that’s likely to rise, you may want to pay off that loan first regardless of the balance.” Use it in a sentence.
  2. What does “debt consolidation loan” mean? “Debt consolidation loans also offer a fixed repayment term.” Use it in a sentence.
  3. What does “minimum payment trap” mean? “A debt consolidation loan can help you avoid getting stuck in a minimum payment trap.” Use it in a sentence.

Discussion Questions:

  1. Explain the difference between debt snowball and debt avalanche method.
  2. Give one advantage and disadvantage for both debt payoff methods.
  3. Which between the two do you think is a better strategy in paying debts off and why?
  4. Share your own approach/es in getting rid of debts.

Top Three Market Headlines

B2 – Upper Intermediate

In response to growing demand for sustainable energy sources, nuclear energy stocks have performed remarkably well, especially as major tech companies like Amazon and Google invest in nuclear power to meet data center energy needs.

Read the article to know how the Market Vectors Global Uranium and Nuclear Energy Index has surged, reflecting increased interest in this clean energy sector​.

https://www.ajg.com/us/news-and-insights/2024/oct/weekly-financial-markets-update-october-21-2024/

Vocabulary Questions:

  1. What does “front month contract” mean? “ The 2024 gold rally took another step higher last week, with the front-month futures contract for the metal hitting another all-time high and surpassing $2,700 an ounce for the first time.” Use it in a sentence.
  2. What does “jolt” mean? “Nuclear energy stocks received a jolt last week after Amazon and Google each announced deals to secure power from nuclear facilities to meet soaring AI data center demands.” Use it in a sentence.
  3. What does “scalability” mean? “The tech giants recently closed multiple investments and partnerships focused on small modular reactors (SMRs), an innovative nuclear technology offering enhanced scalability. ” Use it in a sentence.

Discussion Questions:

  1. Why do you think nuclear energy is becoming more popular as an investment option right now?
  2. How might companies like Amazon and Google using nuclear energy impact the clean energy sector overall?
  3. What are some reasons investors are choosing nuclear energy over other renewable sources like solar or wind?
  4. Do you think increased investment in nuclear energy stocks will lead to more sustainable practices, or could there be challenges?

The Latest Personal Finance News

B2 – Upper Intermediate

In a surprising turn, the Federal Reserve cut the federal funds rate by 0.5% in September, marking its first reduction since 2020. This shift is a response to approaching inflation targets and is anticipated to lower borrowing costs for consumers. Further rate cuts are expected, which may impact interest rates on credit cards, loans, and mortgages, though savings rates could decrease as well.

Read the article to know how this policy move signals the Fed’s confidence in economic stabilization while addressing inflation control.

https://www.experian.com/blogs/ask-experian/latest-personal-finance-news/

Vocabulary Questions:

  1. What does “curtail” mean? “It’s also the first time since July 2023 the committee adjusted the rate, which reached its highest level in more than 20 years after a sharp series of hikes implemented in an effort to curtail inflation.” Use it in a sentence.
  2. What does “pummel” mean? “Persistently high inflation rates have pummeled consumers’ wallets over the past few years.” Use it in a sentence.
  3. What does “blip” mean? “While rates have largely trended downward in 2024, the latest blip adds more uncertainty to the timeline for housing costs to become more affordable again.” Use it in a sentence.

Discussion Questions:

  1. What do you think are some of the reasons behind the Federal Reserve’s decision to cut interest rates?
  2. How might lower interest rates affect people with mortgages or credit card debt?
  3. Do you think cutting rates will have a big impact on inflation, or will it take time to see the effects?
  4. In what ways might these rate cuts influence the economy over the next few years?

Spaving and How to Avoid this Financial Trap

B2 – Upper Intermediate

In the world of handling money, there’s this thing called “spaving.” It’s a mix of “spending” and “saving.” It’s when people think they’re saving money by spending more upfront on things that seem better quality. Even though it might seem smart, it can actually cause money problems in the long run.

Watch this video about to know more about it and get some tips on making better choices with your money and reach your savings goals more easily.

Vocabulary Questions:

  1. What does the phrase “to rip off” mean? “Some big shot over at the weiner company and some big shot at the bun company got together and decided to rip off the American public.” Use this phrase in a sentence.
  2. What does the word “entice” mean? “Buy one, get one” has enticed you to spend more.” Make a sentence using the word.
  3. What does the word “outsmart” mean? “The algorithms are coming after you, so you have to outsmart them.” Use the word in a sentence.

Discussion Questions:

  1. Do you think ‘spaving’ is a common financial strategy among people today? Why or why not?
  2. What are some potential advantages and disadvantages of the ‘spaving’ mindset?
  3. Share any personal experiences where you’ve encountered ‘spaving’ in your own life or observed it in others.
  4. What are some examples of products or services where ‘spaving’ might be particularly tempting, and how can individuals differentiate between genuine savings and falling into the ‘spaving’ trap?
  5. What alternative strategies can individuals employ to achieve their savings goals without resorting to ‘spaving’?

Chinese Women Teaming Up with Strangers to Save Money

B2 – Upper  Intermediate 

Amidst the low confidence in what the future holds for the economy, Chinese women are seeking for partners or “da zi” they can join forces with in order to save money.

Saving money has never been harder. Many women are concerned so they must find ways on how to cut down on their expenses wherever they can or finding something to do to earn extra bucks, thereby, increasing their savings.

Read the article about how Chinese women are teaming up with saving partners in order to be able to put some money aside.

https://www.bbc.com/news/world-asia-china-68692375

Vocabulary Questions:

  1. What does “impulse purchase” mean? “They also help to stop each other from making impulse purchases.” Use this phrase in a sentence.
  2. What does “blunt” mean in this context, “However, if people continue to avoid spending and save their money instead it could blunt the bank’s ability to influence the economy.”? Use this word in a sentence.
  3. What does “banknote” mean? ”I feel safe and satisfied seeing stacks of banknotes getting thicker and thicker.” Use this word in a sentence.

Discussion Questions:

  1. What is your opinion on having saving partners?
  2. What might be the pros and cons of having “da zis”?
  3. How has having saving partners help Chinese women save money?
  4. What are your thoughts on more traditional saving methods such as keeping cash at home?
  5. Are people in your country saving more or less in the recent years? Why do you think this is the trend?
  6. What are some things you have done in order to save money? How about to make extra cash?

Retirement Feels Impossible Today

B2 – Upper Intermediate

How would your life be like if you can go without alarm clocks, when you are not under time constraints, and when you can enjoy the company of your loved ones, and live a carefree and leisurely life?

It sounds a lot like retirement, doesn’t it? But everything around us took a sharp turn for the worse, and now enjoying our later years seems like a pipe dream.

Watch the video, to find out more about why retirement seems unattainable these days and get some tips on how to prepare for it.

Vocabulary Questions:

  1. What is the meaning of “evolving landscape“? “The process of saving money has become more complex. Despite these obstacles, there are still ways to successfully navigate this evolving landscape.” Use it in your own sentence.
  2. What does “safety net” mean? “When you stop working, it’s kind of like a safety net for your older years.” Use this expression in your own sentence.
  3. What does “tucked away” mean?” “Graduating with a substantial student loan debt means that a significant portion of your earnings is dedicated to debt repayment rather than being tucked away for the future.” Construct a sentence with this term.

Discussion Questions:

  1. What are the 9 reasons mentioned in the video of why retirement is impossible today? Drawing from your experience or observation, do you concur with these reasons?
  2. How has retirement changed in your nation? and what are the factors that affect it?
  3. Do you think it’s necessary to make retirement plans? Why?
  4. Considering the various challenges people have when trying to save for retirement, are there any strategies you can think of to guarantee a better retirement?
  5. Do you find retiring to be bothersome at this time, given how drastically society is changing over time? How do you respond to it?