Tag: finance

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?

Forex Trading Guide

B2 – Upper Intermediate

Some people mastered a new lifestyle — living without a traditional job. Some go into trading currencies. This could be an unconventional, but good way of making money. 

Read the article and know the fundamentals of forex trading.

https://www.investopedia.com/articles/forex/11/why-trade-forex.asp

Vocabulary Questions:

  1. What is the meaning of “portmanteau“, “Forex (FX) is a portmanteau of foreign currency and exchange.”? Use it in a sentence.
  2. What is the meaning of a “triennial“, “According to a 2019 triennial report from the Bank for International Settlements (a global bank for national central banks), the daily trading volume for forex reached $6.6 trillion in 2019.”? Use it in a sentence.
  3. What is “(market) liquidity“, “It features in six of the seven currency pairs with the most liquidity in the markets.”? Use it in a sentence.

Discussion Questions:

  1. Cite some of your key takeaways about forex trading from the article.
  2. What do you think are the qualities that make a good trader?
  3. How do you stay abreast with the ever-changing financial markets?
  4. Why might some people consider forex trading a scam? Have you tried forex trading?
  5. Do you think anyone is capable of forex trading? Why?
  6. Is it a good alternative to a regular job? Why?

Inflation and Interest Rates

B2 – Upper Intermediate

Based on a general correlation, interest rates and inflation are inversely correlated. Lower interest rates normally result in more inflation, whereas higher interest rates typically result in lower inflation.

Watch the video to understand the logic behind this relationship.

Vocabulary Questions:

  1. What does the idiom “rainy day” mean? Use it in a sentence.
    “They don’t go out as much, they don’t have lots of holidays, and [sic] instead put their money away for a rainy day.”
  2. What does the word “subsequent” mean?
    “Subsequent supply chain problems have arisen.” Use it in a sentence.
  3. What does the word “inverse” mean? Use it in your own sentence.
    “Interest rates and inflation has an inverse relationship.”

Discussion Questions:

  1. In your own words, explain the inverse relationship between inflation and interest rates.
  2. What comes to your mind when you hear the words “inflation” and “interest rate”?
  3. Is inflation evident in your country? Cite examples of evidence.
  4. What policies has your government used to combat inflation?
  5. Has the interest rate increased in your country? How do you feel about it?

Buy the Dip

B2 – Upper Intermediate

Purchasing an asset when its price declines, often as a result of external events, is referred to as “buying the dip” in the context of investing. In expectation of a price recovery for that asset, investors then “buy the dip.”

People may tell you to “buy the dip” while the stock market is declining. Does it, however, make sense?

Watch the video about buying the dip.

Vocabulary Questions:

  1. How do you interpret the term “blue chip” in trading?
    This is the last 12 months of a blue chip stock price.
  2. What does the idiom “bang for the buck” mean?
    Since the shares are essentially on sale, you get more bang for your buck.
  3. Use the phrase “in hindsight” in a sentence.

Discussion Questions:

  1. How do you feel about investing in the stock market?
  2. If you are a trader, would you buy the dip?
  3. Which of the investing strategies mentioned in the video would you most likely employ if you were a stock market investor?

AdSense: Making Money

B2 – Upper Intermediate

We live in a society that cannot be separated from the internet. This is why online ads have become very significant. Some online ads can be very helpful not only to consumers, but also to the website owners and the advertisers. Today, placing ads on websites have been made easier by AdSense.

Let’s listen to the audio and read the transcript to know more about AdSense.

Adsense: Making Money Online

Discussion Questions:

  1. What is AdSense? How does it work? How can AdSense help grow online businesses?
  2. What might be benefits and drawbacks of using AdSense?
  3. What can you say about AdSense ads on some websites you have visited?
  4. Are you inclined to purchase products or services through online ads? Why or why not?
  5. How important is making money to you? Explain. 

Divorce Affects Your Finances

B2 – Upper Intermediate

Divorce is not pleasant. It is, nevertheless, the appropriate decision at times. But regardless of whether it occurs in your lifetime, everyone should be aware of what would happen to a couple’s money in the event of a divorce.

It might be challenging but crucial to have a clear grasp of finances throughout a divorce. You have power over your future when you have control over your finances.

Here are some things to consider if you’re thinking about getting a divorce, are already going through one, or rebuilding your life.

Discussion Questions:

  1. Is the divorce rate high where you are from? Why do you think that is?
  2. How do you view divorce?
  3. In your country, how are marital assets divided after a divorce? What about the repayment of loans obtained prior to the divorce?
  4. How does divorce affect a person’s taxes?

Building Credit from Scratch

B2 – Upper Intermediate

In several nations, credit is a crucial part of everyday financial life, so if you’re just getting started, building your credit history will be your first step.

The issue is that before approving you for a loan or credit card, many businesses want to verify your credit, and they can be wary if you don’t already have a credit history. Fortunately, there are a few methods to get over this possible obstacle.

You may learn how to start developing your credit by watching the video.

Discussion Questions:

  1. What comes to your mind when you hear the word ‘credit’?
  2. How does the credit system work in your country?
  3. In your country, is it necessary for you to have a credit history to be able to borrow money from the bank?
  4. What is the process for obtaining a bank loan for a property in your country?
  5. How have you built your credit score?

Refinancing Mortgage Loans

B2 – Upper Intermediate

Buying a house is probably the biggest financial decision we ever have to make in our lives. Most people do not have enough funds to cover the entire cost of their house that is why they turn to banks or other financial institutions for financial assistance. When mortgage rates go down, some people see this as a chance to refinance their mortgage.

Let’s listen to this short commercial to know more about mortgage refinancing.

Refinancing Mortgage Loans

Discussion Questions:

  1. How does mortgage refinancing work?
  2. What are the benefits of refinancing a mortgage?
  3. Do you see any pitfalls in refinancing a mortgage?
  4. Do you have a mortgage? Does this option seem appealing to you?

How Does the Stock Market Work?

B2 – Upper Intermediate

In a nutshell, the stock market helps companies raise money to fund operations by selling shares of stock. It creates and sustains wealth for individual investors.

Watch the video to know more about how the stock market works.

Discussion Questions:

  1. What is your investing strategy?
  2. Do you invest in the stock market? How has your portfolio performed in the last five years?
  3. How can you prevent losses while trading in stock markets?
  4. When is the right time to invest? Why?