Financial management is a crucial life skill, and the ability to discuss it fluently can significantly boost your IELTS Speaking score. This topic has appeared frequently in past IELTS exams and is likely to remain relevant in future tests. Let’s explore how to tackle this subject effectively across all parts of the IELTS Speaking test.
Part 1: Introduction and Interview
In this section, the examiner may ask general questions about your personal experiences with money management. Here are some potential questions:
- Do you think it’s important to manage your finances well?
- How do you usually keep track of your expenses?
- Did you learn about money management in school?
Let’s look at a sample answer for the first question:
Sample Answer (Band 8-9):
“Absolutely, I believe financial management is crucial in today’s world. It’s not just about saving money, but also about making informed decisions about spending and investing. Effective financial management can provide a sense of security and freedom, allowing us to pursue our goals without constant worry about money. Moreover, it’s a skill that can benefit every aspect of life, from personal to professional.”
Part 2: Long Turn
Here’s a potential cue card related to the topic:
Describe a person who is good at managing their finances
You should say:
- Who this person is
- How you know this person
- What specific things they do to manage their finances well
- And explain why you think this person is good at managing finances
Sample Answer (Band 8-9):
“I’d like to talk about my aunt, Sarah, who I consider to be exceptionally adept at managing her finances. I’ve known her all my life, of course, but it’s really in the past decade or so that I’ve come to appreciate her financial acumen.
Sarah has always been meticulous about budgeting. She uses a sophisticated budgeting app that allows her to track every penny she spends and categorize her expenses. This gives her a clear picture of where her money is going and helps her identify areas where she can cut back if necessary.
One of the most impressive things about Sarah’s financial management is her approach to saving and investing. She adheres to the principle of ‘pay yourself first’, automatically setting aside a portion of her income for savings and investments before allocating money for expenses. She’s also diversified her investment portfolio, including a mix of stocks, bonds, and real estate, which has helped her weather financial storms and grow her wealth steadily over time.
Moreover, Sarah is incredibly disciplined about avoiding unnecessary debt. She uses credit cards for convenience and to build her credit score, but she pays off the balance in full each month to avoid interest charges. For major purchases, she saves up in advance rather than relying on loans or financing options.
I believe Sarah excels at managing her finances because she combines knowledge with discipline. She’s taken the time to educate herself about personal finance, regularly reading financial news and attending workshops. But more importantly, she consistently applies what she learns, making smart financial decisions day in and day out. Her approach has allowed her to achieve financial security and pursue her goals without money worries, which I find truly inspiring.”
woman-checking-finances-on-laptop|financial-management|A woman sitting on a couch with a laptop, reviewing her budget and smiling. She is surrounded by plants and natural light.
Follow-up questions:
- How has this person’s financial management skills influenced you?
- Do you think everyone can learn to manage their finances well?
Sample Answer for Question 1 (Band 8-9):
“Sarah’s financial prowess has had a profound impact on me. Observing her approach has motivated me to take a more proactive stance in managing my own finances. I’ve started using a budgeting app like she does, which has really opened my eyes to my spending patterns. Moreover, her emphasis on financial education has inspired me to delve deeper into personal finance topics. I now regularly read financial blogs and have even taken an online course on investing. Perhaps most importantly, Sarah’s example has shown me that financial management isn’t just about numbers—it’s about creating a stable foundation that allows you to pursue your dreams and weather unexpected challenges.”
Part 3: Two-way Discussion
In this section, the examiner will ask more abstract questions related to financial management. Here are some potential questions and sample answers:
Examiner: Do you think schools should teach financial management skills?
Sample Answer (Band 8-9):
“I firmly believe that financial education should be an integral part of the school curriculum. In today’s complex economic landscape, financial literacy is as essential as reading or mathematics. By introducing these concepts early, we can equip young people with the tools they need to make informed financial decisions throughout their lives.
A comprehensive financial education program could cover topics like budgeting, saving, investing, and understanding credit. This knowledge would empower students to avoid common financial pitfalls and set them on a path to financial stability. Moreover, teaching financial management in schools could help bridge the wealth gap by ensuring that all students, regardless of their background, have access to this crucial information.
However, it’s important to note that financial education in schools should be practical and relevant. Rather than focusing solely on abstract concepts, lessons should include real-world applications and exercises that simulate actual financial decisions students might face. This approach would make the learning more engaging and increase the likelihood that students will apply these skills in their daily lives.”
Examiner: How has technology changed the way people manage their finances?
Sample Answer (Band 8-9):
“Technology has revolutionized financial management in numerous ways. Firstly, it has made tracking expenses and budgeting significantly more accessible and efficient. With smartphone apps and online tools, people can now monitor their spending in real-time, categorize expenses automatically, and receive alerts when they’re approaching budget limits.
Moreover, technology has democratized investing. Online platforms and robo-advisors have made it possible for individuals to invest in a diversified portfolio with relatively small amounts of money, something that was once the preserve of the wealthy or those with specialized knowledge.
Digital banking has also transformed how we handle day-to-day financial transactions. Mobile payment systems and online banking have made it easier to pay bills, transfer money, and even split expenses with friends, all without the need for cash or checks.
However, while technology has brought many benefits, it also presents new challenges. The ease of online shopping and one-click purchases can make overspending more tempting. Additionally, the proliferation of financial technologies has increased the risk of fraud and cybercrime, making it crucial for individuals to be vigilant about their digital security.
In conclusion, technology has made financial management more accessible and efficient, but it also requires users to develop new skills and awareness to navigate this digital financial landscape safely and effectively.”
Key Vocabulary and Phrases for High Scores
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Financial acumen (noun) – /faɪˈnænʃəl əˈkjuːmən/ – The ability to make good judgments and decisions regarding financial matters.
Example: “Her financial acumen has helped her build a successful business empire.” -
Meticulous (adjective) – /məˈtɪkjələs/ – Showing great attention to detail; very careful and precise.
Example: “He is meticulous about keeping track of his expenses.” -
Diversify (verb) – /daɪˈvɜːrsɪfaɪ/ – To vary or expand one’s investments to reduce risk.
Example: “It’s wise to diversify your investment portfolio to minimize potential losses.” -
Fiscal discipline (noun phrase) – /ˈfɪskəl ˈdɪsəplɪn/ – The practice of managing money and resources carefully and responsibly.
Example: “Maintaining fiscal discipline is crucial for long-term financial stability.” -
Financial literacy (noun phrase) – /faɪˈnænʃəl ˈlɪtərəsi/ – The ability to understand and effectively use various financial skills.
Example: “Improving financial literacy among young people can lead to better economic outcomes for society as a whole.”
Examiner’s Advice
To score high in the IELTS Speaking test when discussing financial management:
- Use a range of sophisticated vocabulary related to finance and economics.
- Provide specific examples to support your points, drawing from personal experiences or observations.
- Demonstrate critical thinking by discussing both advantages and potential drawbacks of financial management strategies.
- Practice speaking about financial topics to improve your fluency and confidence.
- Stay informed about current financial trends and issues to provide relevant and up-to-date responses.
Remember, the key to success in IELTS Speaking is not just about what you say, but how you say it. Aim for clear pronunciation, natural intonation, and a confident delivery to maximize your score.
For more tips on acing your IELTS Speaking test, check out our guide on how to describe a time when you made a tough financial decision.