21 | Personal Finance

Today you will learn 5 new English words related to "Personal Finance"

Author

SEWT Team
January 24, 2024

TODAY’S TOPIC: “Personal Finance”

“Personal finance” is an essential topic for you as an ESL learner to study and understand because it equips you with the necessary knowledge and skills to manage your finances in a foreign country effectively. Learning about personal finance will enable you to navigate financial systems, understand banking terms, and make informed decisions regarding budgeting, saving, and investing. So, today’s vocabulary words will help you engage in meaningful conversations about personal finance. Let’s jump right in!

TODAY’S 5 VOCABULARY WORDS

1 | BUDGET

  1. Part of speech: Verb

  2. Definition: To plan and allocate money for different purposes.

Example Sentences:

  1. I need to start budgeting to save money for my future.

  2. My grandmother used to budget all the time.

  3. I need to budget my expenses carefully to ensure I can save enough money for my plans.

2 | DEBT

  • Part of speech: Noun

  • Definition: Money owed to someone else, typically as a result of borrowing or purchasing on credit.

  • Example Sentences:

    1. I need to create a plan to pay off my debt and become financially free.

    2. Accumulating too much debt can lead to financial stress.

    3. It is important to manage your debt responsibly to avoid financial difficulties.

3 | INCOME

  • Part of speech: Noun

  • Definition: Money earned from various sources, such as employment, investments, or business activities.

  • Example Sentences:

    1. I need to find a job that provides a stable income.

    2. Diversifying your sources of income can provide financial security.

    3. It is important to track your income and expenses to maintain a balanced budget.

4 | EXPENSES

  • Part of speech: Noun

  • Definition: The costs incurred in the process of living, working, or operating a business.

  • Example Sentences:

    1. I need to analyze my monthly expenses to identify areas where I can save money.

    2. Keeping track of your expenses can help you make informed financial decisions.

    3. It is important to differentiate between essential and non-essential expenses when budgeting.

5 | ASSET

  • Part of speech: Noun

  • Definition: Something of value that is owned by an individual, such as property, investments, or cash.

  • Example Sentences:

    1. Real estate can be a valuable asset for long-term wealth accumulation.

    2. It is important to diversify your assets to mitigate risk.

    3. Tracking the value of your assets can help you assess your overall financial health.

A PARAGRAPH USING THE 5 VOCABULARY WORDS

Living in New York and trying to learn how to budget can be a challenging task for Americans. Understanding personal finance is essential for effectively managing finances in a city known for its high living expenses. One of the key concepts to grasp is budgeting - planning and allocating money for different purposes. By creating a well-structured budget, individuals can prioritize their expenses, save for the future, and avoid unnecessary debt. It is crucial to track income from various sources and carefully analyze expenses incurred in the process of living in the city. Differentiating between essential and non-essential expenses is important when budgeting in New York. Additionally, individuals should consider diversifying their assets to mitigate risk and ensure long-term financial stability in a city known for its dynamic nature.

Access the practice lessons for today’s vocabulary words and master your pronunciation by going to the “English With Tiffani” app.

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