Money
Band 5-7 Vocab
Currency (noun): The system of money used in a particular country.
Example Sentence: In Japan, the currency is the yen.
Budget (noun): A plan for managing and spending money.
Example Sentence: Creating a budget helps you control your expenses.
Save (verb): To keep money for future use rather than spending it.
Example Sentence: It's wise to save some money for unexpected expenses.
Loan (noun): Money borrowed with an agreement to pay it back, usually with interest.
Example Sentence: Many students take out loans to finance their education.
Expenses (noun): The money spent on goods and services.
Example Sentence: Tracking your expenses is essential for financial management.
Invest (verb): To put money into a project or business with the expectation of achieving a profit.
Example Sentence: Some people choose to invest in stocks for long-term growth.
Credit (noun): The ability to borrow money with the promise of repayment.
Example Sentence: Maintaining good credit is important for securing loans.
ATM (noun): Automated Teller Machine, a device for withdrawing or depositing money.
Example Sentence: I need to stop by the ATM to get some cash.
IELTS Sample Answer
Question: Discuss the importance of budgeting in managing personal finances.
Budgeting is crucial for effective financial management. It involves creating a plan for spending and saving money, providing a clear overview of one's financial situation. By outlining income and expenses, individuals can make informed decisions about their finances, ensuring that spending aligns with financial goals. Moreover, budgeting helps identify areas where one can save money, fostering a habit of responsible financial behavior. In today's world, where expenses can easily accumulate, having a budget acts as a guiding tool to prevent overspending and accumulating debt. Overall, mastering the skill of budgeting is a key step toward achieving financial stability and long-term goals.
Band 7-9 Vocab
Capital (noun): Wealth in the form of money or assets.
Example Sentence: Entrepreneurs often seek capital to start or expand their businesses.
Portfolio (noun): A range of investments held by an individual or organization.
Example Sentence: Diversifying your investment portfolio can reduce risk.
Cryptocurrency (noun): Digital or virtual currency that uses cryptography for security.
Example Sentence: Bitcoin is a popular cryptocurrency.
Inflation (noun): The rate at which the general level of prices for goods and services rises.
Example Sentence: Inflation erodes the purchasing power of money over time.
Dividend (noun): A sum of money paid regularly by a company to its shareholders out of its profits.
Example Sentence: Investors appreciate stocks that offer regular dividends.
Hedge (verb): To protect oneself against a risk, typically by making financial transactions.
Example Sentence: Investors often hedge against market fluctuations.
Net Worth (noun): The total assets minus liabilities of an individual or company.
Example Sentence: Calculating your net worth gives an overview of your financial health.
Stock Market (noun): A place where shares of publicly held companies are bought and sold.
Example Sentence: The stock market reflects the economic health of a nation.
IELTS Sample Answer
Question: What has been the impact of globalization on financial systems?
Globalization has significantly transformed financial systems, creating a more interconnected and dynamic landscape. International investments have become commonplace, with individuals and businesses diversifying their portfolios across borders to mitigate risks and capitalize on opportunities. The rise of digital currencies, such as cryptocurrencies, has introduced a new dimension to global finance, challenging traditional banking systems. Cryptocurrencies operate on a decentralized platform, impacting how transactions are conducted globally. While globalization has facilitated easier access to international markets and investments, it has also brought challenges such as the potential for increased market volatility and regulatory complexities. Adapting to these changes and understanding the intricacies of global financial systems is crucial for individuals and institutions navigating the complexities of the modern financial landscape.