Tag: finance

Navigating Financial Challenges in the Digital Age

B2 – Upper Intermediate

In the digital age, millennials might be in need of specific budgeting strategies tailor-fitted to their financial needs and challenges, handling student loan debt, managing irregular income streams, balancing discretionary spending with saving for long-term goals like homeownership or retirement, and utilizing technology for budgeting purposes, to name a few.

Read this article about the financial challenges and how to they can be effectively managed in the digital era.

https://moneycoach.ai/blog/money-management-for-millennials-navigating-financial-challenges-in-the-digital-age

Vocabulary Questions:

  1. What does “at one’s disposal” mean? “From digital payment platforms to investment apps, millennials have a wide range of tools at their disposal.“ Give two (2) synonyms or similar expressions and use ‘at one’s disposal’ in your own sentence.
  2. What does “round-up savings” mean? “Additionally, explore investment platforms that offer features like round-up savings or recurring investments.” Use it in a sentence.
  3. What does “to diversify one’s portfolio” mean? “Understand the risks involved and diversify your portfolio to minimize potential losses.” Use it in a sentence.

Discussion Questions:

  1. How does the article address the unique financial challenges that millennials face, and what are some specific strategies recommended for overcoming these challenges through budgeting?
  2. Are there any insights provided in the article regarding how millennials can navigate irregular income streams or variable expenses while maintaining a budget, and what practical steps are recommended to address these issues?
  3. Does the article discuss the balance between short-term discretionary spending and long-term financial goals for millennials, and if so, what advice does it offer for prioritizing and achieving these goals through budgeting?

The Importance of Budgeting

B2 – Upper Intermediate

Budgeting is the key to achieving financial stability.

The article below provides insights into how budgeting can help individuals manage their expenses, save money, and plan for future financial goals.

Read this article to know about some tips on creating and sticking to a budget, managing debt, and maximizing savings.

https://financeokay.com/2023/09/14/the-importance-of-budgeting-a-guide-to-financial-stability/
https://financeokay.com/2023/09/14/the-importance-of-budgeting-a-guide-to-financial-stability/

Vocabulary Questions:

  1. What does “to provide a clear picture of something” mean? “It provides a clear picture of where your money comes from, where it goes, and how you can optimize its use.” Use it in a sentence.
  2. What does “to live within one’s means” mean? “By setting spending limits within your budget, you ensure that you live within your means.” Use it in a sentence.
  3. What does “cushion” mean in this context? “By allocating a portion of your income to an emergency fund within your budget, you create a financial cushion to cover unforeseen costs without resorting to borrowing or depleting your savings.” Give two (2) synonyms or similar expressions and use ‘cushion’ in your own sentence.

Discussion Questions:

  1. What are some key benefits of practicing budgeting for individuals seeking financial stability?
  2. What roles does budgeting have in managing debts?
  3. Discuss any potential challenges or obstacles that individuals might encounter when trying to adhere to a budget.
  4. What advice can be given to individuals struggling with debts?
  5. Cite some practical tips or strategies for creating and maintaining an effective budget.

What Is Fintech? 

B2 – Upper Intermediate

In the past few years, the blending of money matters with technology has created a new and exciting field called fintech.

Fintech is changing how we do banking and manage money by using new technologies to come up with fresh ideas and challenge old ways of doing things in banks and other financial institutions. It’s brought us things like banking apps on our phones, places to trade digital money, ways to lend money directly to others online, and automated investment advice. Fintech is making financial services easier to use and available to more people, both individuals and businesses, than ever before.

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

Vocabulary Questions:

  1. What does “disrupt” mean in this context, “Here at a major fintech conference in Amsterdam, hundreds of companies are trying to disrupt the banking and finance industries by changing the way we pay and borrow money.” Make a sentence using the word.
  2. What does the expression, “to go big on something” mean? “Some of the world’s biggest companies from Apple to Alibaba are going big on it, too.” Use the expression in a sentence.
  3. What does ” to default on a loan” mean? “Compared to traditional banks, these services might not be required to set aside as much money in case customers default on their loans.” Use the phrase in a sentence.

Discussion Questions:

  1. How has fintech changed the way we interact with and manage our finances on a day-to-day basis?
  2. What do you think are the most significant benefits of fintech for consumers and businesses?
  3. Do you believe that traditional financial institutions will be able to keep up with the pace of innovation brought by fintech companies? Share some insights.
  4. In your opinion, what are the potential risks or drawbacks associated with relying heavily on fintech for managing personal or business finances?
  5. Do you think fintech has the potential to bridge the gap in financial inclusion and provide services to underserved populations? Why or why not?

Financial Literacy Education

B2 – Upper Intermediate

Financial literacy is defined by Investopedia as the ability to understand and use various financial skills, including personal financial management, budgeting, and investing. This form of literacy is not highlighted in many societies around the globe, or maybe because of its diminished importance, many of us are not as concerned about it.

We frequently hear people lamenting the lack of financial education they receive, or more precisely, the lack of instruction or exposure to budgeting techniques, which they believe has contributed to the financial instability that the majority of Americans currently experience—or perhaps that of the global populace as a whole.

To find out more about why financial literacy instruction in the US is so bad, watch the video.

Vocabulary Questions:

  1. What is the meaning of “driving force“? “And that lack of literacy is one driving force behind the financial instability a lot of American face.”Give two (2) synonyms or similar expressions and use ‘driving force’ in your own sentence.
  2. Do you know what “to take a crack at something” means? “Your history teacher might have taken a crack at teaching you about credit card debt.” Construct your own sentence using this phrase.
  3. What is the meaning of “trickle up”?“Financial education has a trickle up effect on students’ families and even the classes’ teachers.” Use it in your own sentence.

Discussion Questions:

  1. What is financial literacy and how important is it in the society?
  2. Should financial literacy be taught at schools? Share your thoughts.
  3. Do you believe that having financial literacy would make people’s lives better? Elaborate on your response.
  4. What is a suitable age to start learning financial management? And why?

Mark Zuckerberg Richer

B2 – Upper Intermediate

In today’s society, the pursuit of wealth and material possessions has become a common goal for many individuals. The desire to be richer drives people to work harder, take risks, and make sacrifices in order to achieve financial success.

To become richer, one must first set clear goals and develop a strategic plan to achieve them. This may involve investing in education or acquiring new skills to increase earning potential. Additionally, saving and investing wisely can help grow wealth over time.

Read this article about Mark Zuckerberg’s increasing wealth.

https://www.msn.com/en-ph/money/companies/mark-zuckerberg-is-almost-54-billion-richer-this-year-and-he-s-closing-in-on-elon-musk/ar-BB1jH3zY?ocid=winp1taskbar&cvid=5f61fbcfc9494e4ff0e890f56d7ebcf3&ei=14#image=AA1iQDPs|9

Vocabulary Questions:

  1. What does “to close in on someone/something” mean? “Mark Zuckerberg has become a lot wealthier this year 2024 — and is closing in on his would-be cage-fight rival Elon Musk for the title of the world’s third-richest person.”  Use it in your own sentence. 
  2. What does the term “closing bell” mean here, “As of Friday’s closing bell, he was worth $182 billion — just $7 billion behind Musk. Zuckerberg hasn’t been richer than the Tesla CEO since November 2020.” Use it in your own sentence. 
  3. What does the idiom “to settle differences” mean? “At one point, the two billionaires even promised to settle their differences in a cage match, although it appears unlikely that is ever going to happen.” Use it in your own sentence. 

Discussion Questions:

  1. How did Mark Zuckerberg become richer this year?
  2. Share your thoughts on Mark Zuckerberg’s net worth surging.
  3. Talk about your opinion about Zuckerberg and Musk’s rivalry and their efforts to play it up.
  4. Who is the wealthiest person from your country and how do they acquire their fortune?
  5. What questions would you like to ask a wealthy person like Mark Zuckerberg?
  6. How can one acquire more wealth and manage it well?
  7. How do you think your company achieve growth year by year?

The No-Buy Challenge

B2 – Upper Intermediate

The popularity of a No-Buy Month stems from its simplicity. A commitment to avoid non-essential spending for an entire month.

As we explore into the experiences of those who took on this challenge, we gain valuable insights into how it affected their private finances and overall well-being.

From economical lessons to unforeseen results, these individuals disclose their tips for mastering the art of financial restraint and achieving improved monetary accountability.

Visit the link for additional information.

https://www.huffpost.com/entry/no-buy-january-challenge-budget_l_65b3f42ee4b0d407294f08b3

Vocabulary Questions:

  1. What does “all or nothing” mean in the sentence, “Cuevas said an “all or nothing” mindset was not sustainable, so she purposely created exceptions for her no-spend challenge.”? Use this in your own sentence.
  2. What does “dopamine rush” mean in the sentence, “To replace the dopamine rush she used to get from shopping, Nevitt said it has helped to go back to the comforting escapism of reading books.”? Use this in your own sentence.
  3. What does “reset and rewire” mean in the sentence, “So I wanted to give my brain a full year to really reset and rewire all of my habits.”? Use this in your own sentence.

Discussion Questions:

  1. Have you ever considered trying a no-buy or no-spend challenge, like the individuals in the article? Why or why not?
  2. How do you usually manage your spending habits? Please share.
  3. Do you find yourself making impulsive purchases, especially during specific times like holidays? Tell me more.
  4. Do you relate to the concept of FOMO spending (fear of missing out), and have you ever made purchases driven by this feeling?
  5. Considering the lessons learned by the individuals in the article, do you think a no-spend challenge could be a beneficial strategy for you to reset spending habits and save money? Why or why not?

How Green Is Your Money

B2 – Upper Intermediate 

We keep our money in the bank. The bank uses our money to invest in or fund other businesses.

Now, the question is, do you have any idea as to what your money is being used for or are you just very green about it?

Listen to this audio and read the transcript about how banks invest our money to fund other business, at times, even dirty practices and find out how our money can help save the environment.

Be ready to answer the questions that follow.

https://www.bbc.co.uk/learningenglish/english/features/6-minute-english_2023/ep-231019

Vocabulary Questions:

  1. What does “green” mean in this context, Neil: “So, do you know if your money is funding dirty practices like oil drilling?” || Beth: “No, I don’t. I have to admit I’m very green about money, and I don’t mean green as in environmentally friendly.”? Give 2 synonyms and use “green” in this context in your own sentence.
  2. What does “to jump on the bandwagon” mean, “It was always viewed, I think, as a niche thing, something for those that had very clear views on the world, social views. That’s now broadened hugely, and there’s great concern about greenwashing so who’s jumping on the bandwagon? – that’s a huge concern amongst investors.”? Use this expression in your own sentence.
  3. What does ”to put the spotlight on someone/something” mean, ”This in turn puts the spotlight on how pension funds are being used, for example whether they support large oil corporations or renewable energy companies.”? Use this idiom in a sentence.

Discussion Questions:

  1. What might be reasons public interest in ethical banks has ballooned in recent years?
  2. Are you aware about where your bank invest your money in? Talk about it.
  3. How common are ethical banks in your country? Why do you think this is the case?
  4. What are your thoughts on Richard Curtis’ campaign “Make My Money Matter” which is essentially doing one simple thing, moving your pension to an environmentally sustainable fund? Would you consider doing such financial move? Why or why not?
  5. They say that the most effective way to fight climate change is to move your pension into ethical investments. Share your opinion on this.
  6. Share your thoughts on this, “Luckily, the customer is always right, and by managing our money ethically, we can all help a little.”.

Cars Lose Their Value So Fast

B2 – Upper Intermediate

One of our largest lifetime investments may be a car. But unlike other investments like a house, a car’s value depreciates quite rapidly.

In what way and why?

Watch the video below to help you find out the answers to these questions.

Vocabulary Questions:

  1. What does “to be underwater on a loan” mean? “A car owner is underwater on a loan if their loan is larger than what their car is worth.” Give two (2) synonyms or similar expressions and make your own sentence using the term ‘underwater on a loan’.
  2. How about the word “abate“? “A lot of those trends have abated since, but those odd times led to lasting changes in the post-pandemic world.” Give two (2) synonyms or similar expressions and make your own sentence using the term ‘abate’.
  3. Do you know what “rein in” means? “The Federal Reserve has raised interest rates in order to rein in inflation and that has made borrowing more expensive.” Give two (2) synonyms or similar expressions and make your own sentence using the term ‘rein in’.

Discussion Questions:

  1. What are the 3 main reasons mentioned in the video that causes car depreciation?
  2. Do you agree to these reasons why cars lose their value? Why or why not?
  3. Could you consider cars as investment? Why or why not?
  4. Which do you consider is the better choice between a new car or a used one? State your stance.
  5. What are different factors a buyer should consider before buying a car?

Americans’ YOLO Spending Baffles Economists

B2 – Upper Intermediate

Amid rising interest rates, reduced savings, and persistent inflation, some Americans are still spending unrestrainedly. This year’s Black Friday saw U.S. shoppers spending more money compared to the previous year, showing a trend of increased spending despite tough economic conditions. Thus, economists are on pins and needles.

Read the article to learn more about Americans’ ‘YOLO’ spending sprees and why economists are confounded about it.

https://www.bbc.com/worklife/article/20231130-why-americans-yolo-spending-attitude-baffles-economists

Vocabulary Questions:

  1. What is a “brick-and-mortar store”? “On Black Friday, sales at brick-and-mortar stores were up 1.1% from last year; online alone, US shoppers spent a record $9.8bn (£7.72bn) online alone. Consumers spent another $12.4bn (£9.77bn) on Cyber Monday – an eye-popping 9.6% increase over last year.” Make a sentence with this term.
  2. Define “chug on”. “If 18 months ago, you’d have said the Federal Reserve Bank could raise interest rates by 500 basis points, and the consumer would chug on, relatively unfazed, I would have been extremely surprised.” Make a sentence.
  3. What does “square the circle” mean? “Given how much of our life is related to work, how can analysts square that circle?” Use this in a sentence.

Discussion Questions:

  1. What drives Americans’ ‘YOLO’ spending spree?
  2. How do you feel about ‘YOLO’ affecting spending habits amid economic uncertainties?
  3. Have your spending habits shifted towards a ‘YOLO’ mentality, and what factors contributed to this change?
  4. How do you balance embracing the present (‘YOLO’) with maintaining financial responsibility in today’s economic landscape?
  5. What societal or cultural changes do you think lead individuals to adopt a ‘You Only Live Once’ spending approach?

Spaving

B2 – Upper Intermediate

People have a lot of bad spending habits and one of these is “spaving”. This habit, often ignored, has a quiet but strong impact on your financial health.

Read the article to learn about spaving and some tips in order not to fall into these spaving traps.

https://www.huffpost.com/entry/what-is-spaving_l_6536c44fe4b0689b3fbd9464

Vocabulary Questions:

  1. Define “spaving”. “For some people, spaving leads to credit card debt, which can mean paying interest that far exceeds whatever was saved in the sales deal.” Use this in a sentence.
  2. What does “to miss out on something” mean here? “The reality is, retailers are constantly rolling out new sales, so just because you miss out on a sale today doesn’t mean you can’t get the same item on sale later.” Make a sentence with this idiom.
  3. What does “to put a dent in something” mean? “A few bucks here and there adds up and can put a huge dent in your overall budget.” Make a sentence using this idiom.

Discussion Questions:

  1. What are your thoughts on spaving?
  2. Are you familiar with the concept of spaving in your own spending habits?
  3. How do you make sure you don’t spend too much when there are sales or time-limited offers?
  4. What are the most common spaving traps? Have you fallen into any of them?
  5. Why do people end up spending more because of spaving?