Part 1
1. Are you generally frugal when it comes to spending money? Are there any luxuries that you think are worth the expense, even if they aren't essential?
2. What are some common expenses that you need to budget for each month?
3. Have you ever regretted blowing money on something? What was it, and why do you regret it?
4. Can you think of a purchase that was good value for money?
5. Have you ever found yourself heavily in debt? How did you get into debt, and how did you manage to pay it off?
6. Have you ever experienced a period when money was tight? How did you cope?
7. Do you have a mortgage or are you planning to get one in the future? Are mortgage interest rates high or low right at the moment?
8. Have you ever purchased something on finance? Was it a good decision in retrospect?
Part 2
9. What strategies do you use to stick to a budget and avoid overspending?
10.Have you ever felt like you were ripped off? What were you buying?
11. If you had to tighten your belt, how could you lower your spending?
12. What are some common scams that you need to be careful of?
13. Do you have any friends who are always living hand to mouth? Why do they always have so little money?
14. What things do you consider basic needs? Should governments ensure that everyone has these things?
15. What level of household income does a family need to live comfortably in your town or city?
VOCABULARY
Topic Vocabulary:
basic needs (noun [pl]):
Definition: Essential requirements or necessities that are fundamental for human survival and well-being.
Example: Access to clean water and nutritious food are basic needs for human survival.
blow money (verb phrase):
Definition: Spending money without thought, often resulting in financial problems.
Example: I blew far too much money on expensive food and drinks over the weekend.
expense (noun [c]):
Definition: Something that requires spending money.
Example: Opening a business involves many expenses.
frugal (adjective):
Definition: Being careful with money and trying to save whenever possible.
Example: She is frugal and always looks for discounts and coupons before making a purchase.
good value for money (idiom):
Definition: Getting a lot of benefit in exchange for the money spent.
Example: The new smartphone includes many features at an affordable price, making it good value for money.
household income (noun phrase):
Definition: The total amount of money earned by all members of a household over a given period.
Example: Their household income increased significantly after they both got better-paying jobs.
in debt (adjective phrase):
Definition: Owing money to someone or owing more money than you have.
Example: I am in debt because I borrowed money to pay for my college tuition.
interest (noun [u]):
Definition: The amount that a lender charges on a loan.
Example: I have to pay interest on my credit card balance every month.
live from hand to mouth (idiom):
Definition: Having just enough money to pay for basic expenses with little or no savings.
Example: With their low-paying jobs, they struggle to pay rent and bills, living from hand to mouth every month.
luxuries (noun [pl]):
Definition: Items or experiences that are not essential but are desirable, such as vacations or high-end products.
Example: She spent a lot of money on luxuries like designer handbags and expensive restaurants.
money is tight (idiom):
Definition: Not having much money so that you have to be very careful about how you spend.
Example: We need to be careful with our spending because money is tight this month.
mortgage (noun [c]):
Definition: A loan taken out to buy a home.
Example: He took out a mortgage to buy his new apartment.
on finance (adjective phrase):
Definition: To pay for something in instalments over time.
Example: I'm thinking about buying a car on finance as I don't have enough cash right now.
pay off (phrasal verb):
Definition: To pay the full amount owed on a debt or loan.
Example: She was finally able to pay off her student loans after years of hard work.
rip off (noun/verb):
Definition: To overcharge someone or sell something at an unfair or unreasonable price.
Example: I paid $15 for this small cup of coffee, what a rip off!
scam (noun [c]):
Definition: A scheme to trick someone into giving money or personal information.
Example: Be careful of phone calls claiming you have won a prize or owe money, as they may be a scam.
stick to a budget (verb phrase):
Definition: Steadily following a plan for spending and saving money.
Example: It can be difficult to stick to a budget, but doing this is key to avoiding financial problems.
take out a loan (verb phrase):
Definition: Borrowing money from a bank or other financial institution.
Example: My bank called to ask if I wanted to take out a loan.
tighten your belt (idiom):
Definition: To reduce spending and be more careful with money.
Example: I've had to really tighten my belt after losing my job.
well-off (adjective):
Definition: To be quite rich.
Example: He had a good job so he was well-off.
Exercise 1: Multiple-Choice Exercise
Choose the best vocabulary word to complete each sentence.
1. They are struggling to make ends meet because their ___________ is not sufficient to cover their expenses.
a) basic needs
b) household income
c) stick to a budget
2. After losing her job, she had to ___________ and cut down on non-essential expenses.
a) blow money
b) tighten her belt
c) live from hand to mouth
3. They decided to ___________ their credit card debt by making regular payments.
a) pay off
b) mortgage
c) take out a loan
4. It seems like they were ___________ because their new car constantly needs repairs.
a) ripped off
b) frugal
c) blowing money
5. They wanted to buy a new TV, but they decided to purchase it ___________ to spread out the payments.
a) mortgage
b) in debt
c) on finance
6. He's known for being ___________ with his money and rarely spends it on unnecessary purchases.
a) in debt
b) frugal
c) well-off
7. She realised it was ___________ when the caller asked for her bank account number.
a) an expense
b) interest
c) a scam
8. Despite money being ___________, they managed to save some money each month.
a) tight
b) frugal
c) household income
Exercise 2: Mistake Correction
One word in each sentence is incorrect or not used in the usual way. Correct the sentences:
1. Access to clean water and nutritious food are simple needs for human survival.
2. I blew far too much debt on expensive food and drinks over the weekend.
3. Opening a business involves many luxuries..
4. The new smartphone includes many features at an affordable price, making it a good price for money.
5. Their home income increased significantly after they both got better-paying jobs.
6. I am in debt because I took out a mortgage to pay for my college tuition.
7. I have to pay debt on my credit card balance every month.
8. With their low-paying jobs, they struggle to pay rent and bills, living from foot to mouth every month.
9. We need to be careful with our spending because money is narrow this month.
10. I'm thinking about buying a car on debt as I don't have enough cash right now.
11. She was finally able to pay down her student loans after years of hard work.
12. I paid $15 for this small cup of coffee, what a well off!
Exercise 3: Gap-fill Exercise
Fill in the blanks with the appropriate word or phrase from the list below.
1. They always struggle to pay all their bills and constantly ___________.
2. After getting a raise, she decided to treat herself to a few ___________ such as an expensive bag and a designer suit.
3. It's important to have a plan to ___________ your debts and improve your financial situation.
4. He was cautious with his spending and always looked for good ___________ when making purchases.
5. They had to take out a ___________ to buy their first home.
6. The new phone they bought turned out to be a ___________ as it stopped working after a month.
7. They were victims of a ___________ and lost a significant amount of money.
8. He wanted to save money for a new car so he had to stick to a __________.
scam
luxuries
pay off
budget
rip off
value for money
live from hand to mouth
mortgage
Vocabulary Answer Key:
Exercise 1: 1b, 2b, 3a, 4a, 5c, 6b, 7c, 8a
Exercise 2: 1. basic, 2. money, 3. expenses, 4. value, 5. household, 6. loan, 7. interest, 8. hand, 9. tight, 10. finance, 11. off, 12. rip
Exercise 3: 1. live from hand to mouth, 2. luxuries, 3. pay off, 4. value for money, 5. mortgage, 6. rip off, 7. scam, 8. budget.
Advanced Discussion Questions
6. Money
SPEAKING
