Speaking about financial management in IELTS requires both vocabulary precision and real-life examples. Similar to describe a skill you have that you find useful in everyday life, this topic tests your ability to discuss practical aspects of daily life.
Part 1: Introduction and Interview Questions
Common questions examiners ask:
- Do you think you’re good at managing money?
- How did you learn to manage money?
- What do you usually spend money on?
- Do you save money? Why/why not?
Sample answer (Band 8-9):
“I consider myself fairly adept at financial management. I learned the basics from my parents, who instilled prudent spending habits in me from an early age. I maintain a detailed budget using a mobile app and prioritize essential expenses while setting aside around 20% of my income for savings and investments.”
Young professional using financial management app on smartphone
Part 2: Cue Card
Describe a person who is very good at managing money
You should say:
- Who this person is
- How you know them
- What they do to manage money well
- And explain why you think they are good at managing money
Sample Answer (Band 8-9):
“I’d like to talk about my uncle James, who’s a certified financial planner and has been my role model for financial management. I’ve known him since childhood, and he’s been instrumental in shaping my understanding of money management.
What makes him exceptional is his systematic approach to finances. He meticulously tracks every expense using sophisticated spreadsheets and has developed a comprehensive investment portfolio. When describe a thing you bought that you are happy about, he always emphasizes the importance of researching thoroughly before making purchases.
He allocates his resources strategically, following the 50-30-20 rule: 50% for necessities, 30% for wants, and 20% for savings and investments. His ability to maintain financial discipline while still enjoying life has really impressed me. Just like how describe a time you helped organize an event, he plans his finances with precision and foresight.
What truly sets him apart is his long-term perspective on wealth creation. He’s managed to build substantial wealth through consistent investing and smart financial decisions, proving that his methods are effective.”
Financial expert explaining investment strategies
Sample Answer (Band 6-7):
“I want to talk about my father, who’s good with money. He works as an accountant and has taught me about saving money. He always makes sure to save some money every month and keeps track of his spending in a notebook. He compares prices before buying things and avoids unnecessary purchases. I think he’s good at managing money because he never has financial problems and has saved enough for retirement.”
Part 3: Discussion Questions
Q: How has technology changed the way people manage money?
A (Band 8-9): “Technology has revolutionized financial management through digital banking, investment apps, and automated budgeting tools. These innovations have made it substantially more convenient to track expenses and make informed financial decisions. However, it’s also created new challenges, such as the need for heightened cybersecurity awareness and resistance to impulse purchases enabled by one-click shopping.”
Q: Why do some people find it difficult to save money?
A (Band 8-9): “Several interconnected factors contribute to this challenge. Firstly, there’s the psychological aspect of instant gratification versus delayed rewards. Additionally, many people lack formal financial education and struggle with implementing effective budgeting strategies. Economic pressures, such as stagnant wages and rising living costs, can also make saving seem virtually impossible for some individuals.”
Key Vocabulary and Phrases
- Financial literacy /faɪˈnænʃəl ˈlɪtərəsi/ (n): understanding of financial concepts
- Budget allocation /ˈbʌdʒɪt ˌæləˈkeɪʃən/ (n): distribution of available money
- Compound interest /ˈkɒmpaʊnd ˈɪntrəst/ (n): interest earned on both initial principal and accumulated interest
- Risk diversification /rɪsk daɪˌvɜːsɪfɪˈkeɪʃən/ (n): spreading investments to reduce risk
- Emergency fund /ɪˈmɜːdʒənsi fʌnd/ (n): money saved for unexpected expenses
Just as describe a new hobby you would like to start requires detailed explanation, discussing financial management demands clear structure and relevant examples. Practice using these terms in context to enhance your speaking performance.
