🎧 English Era Podcast | Ep. 17
📋 Transcript
CRIS: You know what’s funny? We talk about it every single day, we stress about it, we dream about having more of it… but how often do we actually, like, really talk about money? I mean, truly understand it?
EMILY: Right? Money is literally everywhere in our lives, and yet… um, most people never learned how to, you know, actually manage it properly.
CRIS: Exactly! And that’s what we’re diving into today. So whether you’re trying to save for something big, wondering why you always run out of cash by the end of the month, or… or just curious about how money actually works—
EMILY: —this episode is for you!
CRIS: Hey everyone, welcome to English Era Podcast! I’m Cris—
EMILY: —and I’m Emily! And today we’re talking about something that affects literally every single person on the planet: money.
CRIS: So buckle up, because we’re about to get real about finance, spending habits, and… well, why money makes the world go round.
CRIS: Okay, so Emily, let’s start with the basics here. When people think about money, they usually think about, like, having it or not having it, right? But… what is money, really?
EMILY: Ooh, great question! So, the thing is… well, money is basically a tool, you know? It’s a medium of exchange. Um, back in the day—way, way back—people used to barter. Like, I’ll trade you three chickens for a bag of wheat, that kind of thing.
CRIS: That sounds exhausting, honestly.
EMILY: Right? Imagine trying to figure out how many chickens equal a house! So money was invented to make transactions easier. It’s something everyone agrees has value, and, and we can use it to buy goods and services.
CRIS: Makes sense. But here’s what I’m curious about… why do some people seem to be really good with money, and others—myself included sometimes—just… struggle?
EMILY: Ah, okay, so this is super interesting! A lot of it comes down to financial literacy. And the problem is… well, most schools don’t really teach this stuff, do they?
CRIS: No! I mean, I learned calculus, but nobody taught me how to budget or save or invest or anything practical like that.
EMILY: Exactly! So people grow up without understanding the basics. Like, the difference between needs and wants, how credit cards work, why saving is important… all of that.
CRIS: Okay, needs versus wants—let’s break that down a bit. Because I feel like we all know the difference in theory, but in practice…
EMILY: In practice, it gets messy, right? So, um, needs are the essentials. Food, shelter, basic clothing, healthcare—things you literally cannot live without. Wants are everything else. That fancy coffee, the new phone when your old one still works, streaming services—
CRIS: Wait, wait, streaming services are a want?
EMILY: I mean… technically, yes! You don’t need Netflix to survive.
CRIS: Okay, but like, do I really want to live in a world without Netflix?
EMILY: See, this is the trap, you know? We justify wants as needs because they make life more enjoyable. And, and that’s fine! You can spend money on wants. The key is being honest with yourself about what’s what, and making sure your needs are covered first.
CRIS: Right, priorities. So once you’ve got that sorted… how do you actually manage your money? Like, where do you even start?
EMILY: Great question. So, the foundation of good money management is budgeting. And I know, I know—budgeting sounds boring and restrictive, but hear me out.
CRIS: I’m listening…
EMILY: A budget is really just a plan for your money. It tells your money where to go instead of wondering where it went. Um, there’s this popular rule called the 50/30/20 rule—
CRIS: Okay, what’s that?
EMILY: So you divide your income into three categories. Fifty percent goes to needs—rent, groceries, utilities, that kind of thing. Thirty percent goes to wants—entertainment, hobbies, eating out. And twenty percent goes to savings and paying off debt.
CRIS: That… actually sounds pretty manageable. But what if someone’s living paycheck to paycheck? Like, twenty percent for savings seems impossible.
EMILY: Yeah, you’re absolutely right. When money’s tight, these percentages might not work. The thing is… well, even saving five percent or one percent is better than nothing. The habit matters more than the amount, you know?
CRIS: That makes sense. Start small, build from there.
EMILY: Exactly! And here’s something people don’t realize—small amounts add up. If you save just five dollars a day, that’s… um, let me think… about $1,800 a year!
CRIS: Whoa, really? That’s wild.
EMILY: Right? It’s called the latte factor. Like, if you skip that daily fancy coffee and put the money aside instead—
CRIS: —you could fund a vacation or something.
CRIS: Okay, so we’ve talked about budgeting and saving. But what about debt? Because, you know, credit cards, loans… that stuff can get out of control fast.
EMILY: Precisely! Oh man, debt is… it’s a huge topic. So, the thing about debt is that not all debt is bad. Some debt—like a mortgage or student loans—can be considered “good debt” because you’re investing in something that has long-term value.
CRIS: Okay, so good debt versus bad debt.
EMILY: Yeah. Bad debt is usually high-interest consumer debt. Credit cards are the big one. If you carry a balance on your credit card, you’re paying, like, 15 to 25 percent interest sometimes!
CRIS: That’s insane.
EMILY: It is! So the interest just keeps piling up, and, and suddenly you owe way more than you actually spent. That’s why financial experts always say: pay off your credit card in full every month if you can.
CRIS: What if you can’t, though? Like, what if you’re already in credit card debt?
EMILY: Okay, so… there are strategies. One popular method is the debt snowball. You pay off your smallest debt first while making minimum payments on the others. Once that small debt is gone, you take that payment amount and add it to the next smallest debt. It builds momentum, you know?
CRIS: Like a snowball rolling downhill.
EMILY: Exactly! There’s also the debt avalanche method, where you focus on the debt with the highest interest rate first. That one saves you more money in the long run, but the snowball method can be more motivating because you see progress faster.
CRIS: Interesting. So it’s about finding what works for you psychologically.
EMILY: Yes! Money management isn’t just math—it’s psychology too. That’s something people really need to understand.
CRIS: Speaking of psychology… let’s talk about spending habits. Why do we, like, buy things we don’t need?
EMILY: Oh, this is fascinating! So there’s this whole field of study called behavioral economics that looks at why people make irrational financial decisions. Um, one big factor is emotional spending. We buy things to feel better, to reward ourselves, or because we’re bored or stressed.
CRIS: Guilty as charged. Retail therapy is real.
EMILY: It is! And, and marketers know this. They use all sorts of tactics to trigger emotional responses. Sales, limited-time offers, “buy now” buttons—it all creates urgency and, you know, makes us act without thinking.
CRIS: So how do you fight against that? Like, how do you stop impulse buying?
EMILY: Great question. One trick is the 24-hour rule. If you see something you want to buy that’s not essential, wait 24 hours. Give yourself time to think about whether you really need it or if it’s just an impulse.
CRIS: That’s smart. Just… pause.
EMILY: Yeah! Another thing is to unsubscribe from marketing emails and, um, avoid window shopping—whether that’s online or in stores. The less exposure you have to temptation, the easier it is to stick to your budget.
CRIS: That makes a lot of sense. Okay, let’s shift gears a little. We’ve talked about saving and spending, but what about growing your money? Like, investing?
EMILY: Ooh, yes! So investing is how you make your money work for you. Instead of just sitting in a savings account—where it might earn, like, one or two percent interest—you put it into things that have the potential to grow more.
CRIS: Like what? Stocks?
EMILY: Stocks, bonds, mutual funds, real estate… there are lots of options. The key is understanding risk versus reward. Generally, the higher the potential return, the higher the risk.
CRIS: So it’s a gamble?
EMILY: Well… not exactly. It’s calculated risk. If you invest in a diversified portfolio—meaning you spread your money across different types of investments—you reduce risk. You know, don’t put all your eggs in one basket.
CRIS: Right, diversification. I’ve heard that term before.
EMILY: Yeah! And, and the earlier you start investing, the better, because of something called compound interest. Your money earns interest, and then that interest earns interest, and it just keeps growing exponentially over time.
CRIS: So time is your friend when it comes to investing.
EMILY: Exactly! Even small amounts invested early can grow into something significant over the years.
CRIS: This is all super helpful. But I want to touch on something a lot of people struggle with—talking about money. Like, it feels taboo, you know?
EMILY: Oh, totally! Money is still such a sensitive topic. People feel uncomfortable discussing salaries, debt, or even just asking friends to split a bill fairly.
CRIS: Why do you think that is?
EMILY: Well… um, I think there’s a lot of shame and comparison involved. People worry about being judged—either for having too much money or not enough. And, and society has these weird unspoken rules about money conversations being rude or inappropriate.
CRIS: But that just keeps people in the dark, right?
EMILY: Exactly! If we talked more openly about money—how much things cost, what people earn, how to manage finances—everyone would be better off. Financial literacy would improve, and people wouldn’t feel so alone in their struggles.
CRIS: That’s a really good point. Maybe it’s time we normalize these conversations.
EMILY: I think so too.
CRIS: Emily, before we move on, I have to ask—what’s the biggest money mistake people make?
EMILY: Hmm… if I had to pick one? Not having an emergency fund.
CRIS: Emergency fund?
EMILY: Yeah! It’s money set aside specifically for unexpected expenses—car repairs, medical bills, losing your job, that kind of thing. Financial experts recommend having three to six months’ worth of living expenses saved.
CRIS: That sounds like a lot.
EMILY: It is! But even just $500 or $1,000 can make a huge difference. The point is, when something unexpected happens—and it will—you’re not forced to go into debt to deal with it.
CRIS: So it’s like a financial safety net. And it gives you peace of mind, too. You’re not constantly worried about what happens if something goes wrong. I love that.
CRIS: Okay, last big question before we wrap up the main part—what’s one piece of money advice you’d give to someone just starting their financial journey?
EMILY: Oh, that’s easy. Pay yourself first. It means when you get paid, the first thing you do—before paying bills, before spending on anything else—is put money into savings. Even if it’s a small amount. You prioritize your future self, you know?
CRIS: So you’re making saving automatic, not something you do with whatever’s leftover.
EMILY: Exactly! Because there’s never anything leftover, right? Expenses always fill the space. So you have to be intentional about saving.
CRIS: That’s brilliant. Okay, I think we’ve covered a ton of ground here!
Now, to add even more listening practice, we are going to listen to two real situations where people talk about money. Let’s listen.
AT THE BANK
BANK TELLER: Good morning! How can I help you today?
CUSTOMER: Hi! Um, I’d like to open a savings account, please.
BANK TELLER: Of course! We have several options. Are you looking for a regular savings account or something with a higher interest rate?
CUSTOMER: What’s the difference?
BANK TELLER: Well, a regular savings account offers more flexibility—you can withdraw money anytime. But the interest rate is lower. A high-yield savings account offers better interest, but, uh, there might be restrictions on withdrawals.
CUSTOMER: I see. I want to save for a vacation, so… maybe the high-yield one?
BANK TELLER: That sounds like a good fit! You’ll just need to maintain a minimum balance of $500. Does that work for you?
CUSTOMER: Yes, that should be fine.
BANK TELLER: Perfect! Let me get the paperwork started.
TALKING TO A FRIEND
ALEX: Hey, can I ask you something kind of personal?
JORDAN: Sure, what’s up?
ALEX: How do you, like, manage your money? I feel like I’m always broke by the end of the month, and I don’t even know where it all goes.
JORDAN: Oh man, I used to be the same way! What helped me was tracking my expenses. I started using a budgeting app, and… wow, it was eye-opening.
ALEX: Really? What did you find out?
JORDAN: Well, I was spending way more on food delivery than I realized. Like, hundreds of dollars a month! Once I saw the numbers, I started cooking more at home, and it made a huge difference.
ALEX: That’s smart. I should probably do that too.
JORDAN: Yeah! And honestly, it’s not about depriving yourself. It’s just about being aware, you know? Then you can make better choices.
ALEX: That makes sense. I’m gonna try it. Thanks!
VOCABULARY BREAKDOWN
EMILY: Now, let’s move to the vocabulary breakdown! We covered a lot of financial terms today, so let’s make sure everyone’s clear on the key ones.
CRIS: Yes! Okay, first word: budget. Emily, break this down for us.
EMILY: So, a budget is a plan for how you’ll spend your money. It’s basically a financial roadmap. You figure out your income, list your expenses, and, um, make sure you’re not spending more than you earn. The verb form is “to budget,” like “I need to budget better.”
CRIS: Got it. Next: interest. This came up a lot.
EMILY: Right! So interest is the cost of borrowing money, or the reward for saving money. If you take out a loan, you pay interest to the lender. If you put money in a savings account, the bank pays you interest. It’s usually expressed as a percentage.
CRIS: Makes sense. What about debt?
EMILY: Debt is money that you owe to someone else. It could be from credit cards, loans, mortgages… um, basically anytime you borrow money, you’re in debt until you pay it back.
CRIS: And we talked about good debt versus bad debt, right?
EMILY: Exactly! Good debt is an investment in your future—like student loans or a mortgage. Bad debt is high-interest consumer debt that doesn’t build long-term value.
CRIS: Okay, next one: savings. Pretty straightforward, but let’s define it.
EMILY: Savings is money that you set aside for future use instead of spending it immediately. You might save for specific goals—like a vacation or a car—or just for general financial security.
CRIS: Love it. What about invest or investment?
EMILY: To invest means to put money into something with the expectation that it will grow in value over time. An investment is the thing you put your money into—stocks, bonds, real estate, whatever. The goal is to make your money work for you, you know?
CRIS: Right. Okay, here’s an important one: emergency fund.
EMILY: An emergency fund is money saved specifically for unexpected expenses or financial emergencies. It’s your safety net. You don’t touch it unless there’s a true emergency—not for vacations or shopping, but for things like medical bills or losing your job.
CRIS: Next: expenses.
EMILY: Expenses are the costs you have to pay—rent, groceries, utilities, subscriptions, whatever you spend money on. They can be fixed, like rent that’s the same every month, or variable, like groceries that might change.
CRIS: And what’s income?
EMILY: Income is the money you receive, usually from working. It could be a salary, wages, or money from other sources like investments or side jobs. It’s the money coming in, as opposed to expenses, which is money going out.
CRIS: Got it. Let’s talk about credit card.
EMILY: A credit card is a card that lets you borrow money from a bank to make purchases. You’re expected to pay it back, and if you don’t pay the full balance, you get charged interest. It’s super convenient, but, um, it can be dangerous if you’re not careful.
CRIS: For sure. What about compound interest?
EMILY: Ooh, this is a good one! Compound interest is when you earn interest on both your original money and the interest it’s already earned. So your money grows faster and faster over time. Albert Einstein supposedly called it the most powerful force in the universe!
CRIS: That’s pretty amazing. Okay, one more: diversify or diversification.
EMILY: To diversify means to spread your investments across different types of assets so you’re not putting all your money in one place. Diversification reduces risk. Like, if one investment does poorly, you have others that might do well.
CRIS: Perfect! I think that covers the main vocabulary from today.
EMILY: Yeah! And remember, you guys, learning financial vocabulary in English is super useful because so much business and finance happens in English worldwide.
CRIS: Absolutely. So practice using these words, write them down, and, you know, try to use them in real conversations!
EMILY: Well, we’ve covered a lot today! From budgeting and saving to investing and debt management—
CRIS: —and hopefully we’ve made talking about money a little less scary and a little more empowering.
EMILY: Exactly! Because here’s the thing… financial literacy is a skill, and like any skill, you can learn it. It doesn’t matter where you’re starting from—what matters is that you start.
CRIS: Right. And remember, small steps lead to big changes. Even just tracking your spending or saving five dollars a week is progress.
EMILY: Absolutely. So wherever you are in your financial journey, be patient with yourself. You’ve got this!
CRIS: Thanks so much for tuning in to English Era Podcast! If you enjoyed this episode, don’t forget to subscribe and share it with your friends who are learning English.
EMILY: And if you have questions or topics you’d like us to cover, reach out to us! We love hearing from you.
CRIS: Until next time, keep learning, keep growing—
EMILY: —and keep improving your English!
BOTH: See you next time!
✍️Worksheet
🧠 VOCABULARY LIST
| Word/Phrase | Explanation |
|---|---|
| Medium of exchange | Something that is used to buy and sell goods; money serves this purpose |
| Barter | To trade goods or services for other goods or services without using money |
| Financial literacy | Knowledge and understanding of how money, banking, investing, and personal finance work |
| Needs | Essential things you must have to survive (food, shelter, clothing, healthcare) |
| Wants | Things you desire but don’t absolutely need to survive (entertainment, luxury items) |
| Budget | A plan for how you will spend your money; showing income and expenses |
| 50/30/20 rule | A budgeting method: 50% for needs, 30% for wants, 20% for savings/debt repayment |
| Latte factor | The idea that small daily expenses (like coffee) add up to significant amounts over time |
| Good debt | Money borrowed to invest in something valuable (mortgage, student loans) |
| Bad debt | High-interest consumer debt that doesn’t build value (credit card debt) |
| Debt snowball | A debt repayment strategy: pay off smallest debts first to build momentum |
| Debt avalanche | A debt repayment strategy: pay off highest-interest debts first to save money |
| Behavioral economics | The study of how psychology affects people’s financial decisions |
| Emotional spending | Buying things to feel better emotionally, not out of necessity |
| Impulse buying | Making an unplanned purchase without thinking about it carefully |
| 24-hour rule | Waiting 24 hours before buying something non-essential to avoid impulsive purchases |
| Diversified portfolio | Spreading investments across different types of assets to reduce risk |
| Compound interest | Interest earned on both your original money and the interest already earned |
| Emergency fund | Money saved specifically for unexpected expenses or financial emergencies |
| Credit card | A card that allows you to borrow money to make purchases, which you must pay back |
| Interest | A fee charged for borrowing money, or a reward for saving money |
| Debt | Money that you owe to someone else |
| Savings | Money set aside for future use instead of spending it immediately |
| Investment | Money put into something (stocks, bonds, property) hoping it will grow in value |
| Expenses | The costs you have to pay (rent, groceries, utilities, subscriptions) |
| Income | Money you receive, usually from working |
| Diversify/Diversification | To spread investments across different assets to reduce risk |
| Pay yourself first | The practice of putting money into savings before paying other expenses |
| Paycheck to paycheck | Living with barely enough money, spending all income before the next payment arrives |
| Mortgage | A loan specifically for buying property or a house |
GRAMMAR AND COMPREHENSION EXERCISES
Exercise 1: Comprehension – True or False
Read each statement. Write T (True) or F (False).
- _____ According to Emily, most schools teach financial literacy.
- _____ The 50/30/20 rule divides income into three categories: 50% needs, 30% wants, 20% savings.
- _____ The latte factor refers to buying a house.
- _____ Good debt includes high-interest credit card debt.
- _____ The debt snowball method focuses on highest-interest debt first.
- _____ Compound interest means earning interest on your interest.
- _____ An emergency fund should contain at least 10 years of living expenses.
- _____ Emotional spending is when you buy things because you need them.
Exercise 2: Vocabulary in Context – Fill in the Blanks
Complete the sentences using words from the vocabulary list. Use each word only once.
Word Bank: savings, 24-hour, expenses, emergency fund, latte factor, interest, debt, budget, mortgage, diversification
- I want to save money for a vacation, so I’m opening a __________________ account at my bank.
- When I see something I want to buy, I use the __________________ rule to avoid making impulsive decisions.
- My monthly __________________ includes rent, food, and transportation costs.
- I have an __________________ of $2,000 saved for unexpected car repairs or medical bills.
- Eating out every day might seem cheap, but the __________________ shows it adds up to hundreds of dollars monthly.
- The bank is paying me __________________ on my savings account at 2% per year.
- I want to reduce my __________________ because I owe money on three different credit cards.
- To manage my money better, I created a __________________ that shows where my money goes each month.
- My parents took out a __________________ to buy our house—this is considered good debt because property increases in value.
- Instead of putting all my money in one stock, I use a __________________ strategy to spread the risk.
Exercise 3: Dialogue Comprehension – Answer the Questions
Read the dialogue between Alex and Jordan, then answer the questions.
ALEX: Hey, can I ask you something kind of personal?
JORDAN: Sure, what’s up?
ALEX: How do you, like, manage your money? I feel like I’m always broke by the end of the month, and I don’t even know where it all goes.
JORDAN: Oh man, I used to be the same way! What helped me was tracking my expenses. I started using a budgeting app, and… wow, it was eye-opening.
ALEX: Really? What did you find out?
JORDAN: Well, I was spending way more on food delivery than I realized. Like, hundreds of dollars a month! Once I saw the numbers, I started cooking more at home, and it made a huge difference.
ALEX: That’s smart. I should probably do that too.
JORDAN: Yeah! And honestly, it’s not about depriving yourself. It’s just about being aware, you know? Then you can make better choices.
Questions:
- What was Alex’s main problem with money?
- What tool did Jordan use to solve this problem?
- What was Jordan’s biggest expense surprise?
- How much money was Jordan spending on food delivery per month?
- What did Jordan do after discovering this expense?
- According to Jordan, what is the key to better money management?
Exercise 4: Grammar – Present Perfect & Present Simple
Choose the correct verb form to complete the sentences.
- I __________________ (have studied / study) financial literacy for the past three months, and I __________________ (have learned / learn) so much!
- Many people __________________ (have never learned / never learn) how to budget because schools __________________ (don’t teach / haven’t taught) it.
- Emily __________________ (has worked / works) as a financial expert for years, so she __________________ (knows / has known) a lot about investing.
- We __________________ (have talked / talk) about money in this episode, and I hope our listeners __________________ (have understood / understand) the main points.
- Since Cris __________________ (has started / started) using the 50/30/20 rule, he __________________ (has managed / manages) his money much better.
- The debt snowball method __________________ (has helped / helps) thousands of people pay off their debt because it __________________ (creates / has created) momentum.
Exercise 5: Vocabulary Matching
Match each term on the left with its correct definition on the right.
| Term | Definition |
|---|---|
| 1. Compound interest | A) Money set aside for emergencies |
| 2. Emergency fund | B) Trading goods without money |
| 3. Barter | C) Interest earned on interest |
| 4. Diversification | D) Spreading investments across different assets |
| 5. Budget | E) A plan for spending money |
| 6. Debt snowball | F) Small daily expenses that add up |
| 7. Latte factor | G) Paying off smallest debts first |
| 8. Financial literacy | H) Knowledge about managing money |
Answers:
- _____ 2. _____ 3. _____ 4. _____ 5. _____ 6. _____ 7. _____ 8. _____
Exercise 6: Open-Ended Questions – Personal Reflection
Answer these questions in 2-3 complete sentences.
- What are your top three financial needs and wants right now? How do they fit into the 50/30/20 rule?
- Do you have an emergency fund? Why is it important?
- Have you ever made an impulse purchase? How could the 24-hour rule have helped you?
- What is one piece of financial advice from this episode that you want to apply to your own life?
Exercise 7: Listening Comprehension – Spot the Mistakes
The following statements are based on the podcast, but some contain errors. Mark each statement as CORRECT or INCORRECT. If incorrect, write the correct version.
- _____ Emily says that people should pay off their credit cards in full every month if possible.Correction (if needed): _________________________________________________
- _____ According to Emily, an emergency fund should contain one month of living expenses.Correction (if needed): _________________________________________________
- _____ Emily explains that good debt includes high-interest credit card debt.Correction (if needed): _________________________________________________
- _____ The “Pay yourself first” strategy means paying bills before saving money.Correction (if needed): _________________________________________________
- _____ Emotional spending is when you buy things to feel better emotionally.Correction (if needed): _________________________________________________
Exercise 8: Sentence Completion with Collocations
Complete each sentence with the correct collocation from the box.
Collocation Bank: manage money, track expenses, make a budget, pay off debt, save for, live paycheck to paycheck, stick to a budget, build an emergency fund
- Many people __________________ because they spend all their income every month.
- If you want to stop overspending, you need to learn how to __________________ properly.
- The first step to financial freedom is to __________________ that shows all your income and expenses.
- I’m trying to __________________ a new laptop, so I put $50 aside every week.
- Jordan started using an app to __________________ and see where the money was going.
- It’s difficult to __________________ when there are so many sales and temptations.
- Emily recommends using either the snowball or avalanche method to __________________.
- Financial experts say everyone should __________________ with at least three months of living costs.
ANSWER KEYS
Exercise 1: True or False – ANSWERS
- F – Emily says most schools don’t teach financial literacy.
- T – The 50/30/20 rule divides income this way.
- F – The latte factor refers to small daily expenses like coffee.
- F – High-interest credit card debt is considered bad debt.
- F – The debt snowball focuses on smallest debt first; the debt avalanche focuses on highest-interest debt first.
- T – Emily explains compound interest as interest earned on your interest.
- F – An emergency fund should contain 3-6 months of living expenses.
- F – Emotional spending is buying things to feel better, not out of necessity.
Exercise 2: Fill in the Blanks – ANSWERS
- savings
- 24-hour
- expenses
- emergency fund
- latte factor
- interest
- debt
- budget
- mortgage
- diversification
Exercise 3: Dialogue Comprehension – ANSWERS
- Alex felt broke by the end of each month and didn’t know where the money was going.
- Jordan used a budgeting app to track expenses.
- Food delivery was the biggest surprise—Jordan was spending hundreds of dollars monthly on it.
- Hundreds of dollars per month.
- Jordan started cooking more meals at home instead of ordering delivery.
- According to Jordan, the key is being aware of where your money goes so you can make better choices.
Exercise 4: Grammar – ANSWERS
- have studied / have learned
(Present perfect for the past 3 months + present perfect for result) - have never learned / don’t teach
(Present perfect for lifetime experience + present simple for general fact) - has worked / knows
(Present perfect with “for years” + present simple for current knowledge) - have talked / understand
(Present perfect for completed action + present simple for hope/expectation) - started / has managed
(Past simple with “since” + present perfect for ongoing result) - has helped / creates
(Present perfect for duration of time + present simple for general fact)
Exercise 5: Vocabulary Matching – ANSWERS
- C – Compound interest = Interest earned on interest
- A – Emergency fund = Money set aside for emergencies
- B – Barter = Trading goods without money
- D – Diversification = Spreading investments across different assets
- E – Budget = A plan for spending money
- G – Debt snowball = Paying off smallest debts first
- F – Latte factor = Small daily expenses that add up
- H – Financial literacy = Knowledge about managing money
Exercise 6: Open-Ended Questions – SAMPLE ANSWERS
(Answers will vary. Here are sample responses:)
- My top three needs are rent, food, and healthcare. My top three wants are streaming services, going out to eat, and buying new clothes. According to the 50/30/20 rule, I should spend 50% on needs like rent, 30% on wants like entertainment, and 20% on savings.
- I have started an emergency fund with $500. It’s important because unexpected things happen—like car repairs or medical bills—and without savings, I would need to go into debt.
- Yes, I once bought new headphones impulsively. The 24-hour rule would have helped me realize I didn’t actually need them; I could have waited and saved the money instead.
- I want to use the “pay yourself first” strategy. Instead of saving whatever money is left at the end of the month, I will put money into savings immediately after I get paid.
Exercise 7: Listening Comprehension – ANSWERS
- CORRECT – Emily does recommend paying off credit cards in full monthly.
- INCORRECT – Emily recommends 3-6 months of living expenses, not one month.Correction: An emergency fund should contain three to six months of living expenses.
- INCORRECT – High-interest credit card debt is bad debt, not good debt. Good debt includes mortgages and student loans.Correction: According to Emily, good debt includes mortgages and student loans. Bad debt includes high-interest credit card debt.
- INCORRECT – “Pay yourself first” means putting money into savings BEFORE paying other expenses.Correction: “Pay yourself first” means putting money into savings before paying bills and other expenses.
- CORRECT – Emily does describe emotional spending as buying things to feel better emotionally.
Exercise 8: Sentence Completion with Collocations
- live paycheck to paycheck
- manage money
- make a budget
- save for
- track expenses
- stick to a budget
- pay off debt
- build an emergency fund