Inflation and its effects on household spending habits is a recurring theme in IELTS Writing Task 2. This topic has appeared multiple times in past exams and is likely to continue being relevant due to its significant impact on economies worldwide. To help you prepare, we’ll analyze a recent exam question and provide sample essays across different band scores.
Let’s examine the following question that closely resembles those seen in actual IELTS tests:
In many countries, as inflation rises, people tend to spend money as fast as they get it. What are the reasons for this? What problems can this behavior cause for individuals and society?
Analyzing the Question
This question addresses the effects of inflation on consumer spending and requires you to discuss:
- Reasons why people spend money quickly during high inflation
- Problems this behavior causes for individuals and society
To score well, you need to address both parts of the question, provide relevant examples, and structure your essay logically.
Sample Essay 1: Band 8-9
Here’s a high-scoring sample essay:
In numerous nations, periods of high inflation often lead to a phenomenon where individuals rush to spend their earnings rapidly. This essay will explore the underlying reasons for this behavior and examine the potential consequences for both individuals and society at large.
There are several factors that drive people to spend money quickly during inflationary periods. Firstly, the erosion of purchasing power is a primary concern. As prices rise, the value of money decreases, prompting individuals to convert their cash into goods or services before it loses more value. Secondly, there’s often a fear of future price hikes, which encourages immediate purchases rather than delayed gratification. Lastly, in some cases, people may lose faith in the stability of their currency, leading them to invest in tangible assets or foreign currencies as a hedge against further economic instability.
However, this spending behavior can lead to significant problems for both individuals and society. On a personal level, it can result in poor financial planning and a lack of savings, leaving individuals vulnerable to unexpected expenses or economic downturns. Moreover, it may lead to increased personal debt as people borrow to finance their spending habits. From a societal perspective, rapid spending can exacerbate inflation, creating a self-perpetuating cycle that further destabilizes the economy. It can also lead to shortages of goods and services as demand outstrips supply, potentially causing social unrest and economic inequality.
In conclusion, while the impulse to spend quickly during inflationary periods is understandable, it carries substantial risks. Governments and financial institutions must work to stabilize economies and educate the public about responsible financial management. Individuals, in turn, should strive to balance their immediate needs with long-term financial security, even in challenging economic times.
(Word count: 276)
Essay Analysis
This essay demonstrates excellent IELTS Writing Task 2 skills:
- Clear structure with an introduction, two body paragraphs, and a conclusion
- Directly addresses both parts of the question
- Uses a range of complex sentences and advanced vocabulary
- Provides specific examples and explanations
- Concludes with a summary and broader implications
Sample Essay 2: Band 6-7
Here’s a mid-range sample essay:
Nowadays, in many countries, people tend to spend their money quickly when inflation is high. This essay will discuss the reasons for this behavior and the problems it can cause.
There are several reasons why people spend money fast during inflation. First, they worry that their money will lose value if they keep it. For example, if prices are going up, people might buy things now before they become more expensive. Second, some people don’t trust banks or the government during economic problems, so they prefer to have goods instead of money. Lastly, there might be shortages of products, so people buy things quickly before they run out.
This behavior can cause problems for individuals and society. For individuals, spending all their money means they don’t have savings for emergencies or future needs. They might also buy things they don’t really need, wasting money. For society, if everyone is spending a lot, it can make inflation worse. This is because high demand for products can push prices up even more. Also, it can lead to shortages of important goods, which can cause social problems.
In conclusion, while it’s understandable that people want to spend money quickly during inflation, it can lead to difficulties. Governments should try to control inflation and educate people about managing money wisely. People should also try to balance their spending and saving, even when prices are rising.
(Word count: 234)
Essay Analysis
This essay demonstrates good IELTS Writing Task 2 skills but has some areas for improvement:
- Clear structure, but paragraphs could be more developed
- Addresses both parts of the question
- Uses some complex sentences, but language is simpler than the Band 8-9 essay
- Provides basic examples, but could be more specific
- Conclusion restates main points but lacks deeper insight
Key Vocabulary
Here are some important vocabulary words used in the essays, along with their definitions:
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Inflation (noun) /ɪnˈfleɪʃən/: A general increase in prices and fall in the purchasing value of money.
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Purchasing power (noun) /ˈpɜːrtʃəsɪŋ ˌpaʊər/: The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy.
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Exacerbate (verb) /ɪɡˈzæsərbeɪt/: Make (a problem, bad situation, or negative feeling) worse.
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Perpetuating (verb) /pərˈpetʃueɪtɪŋ/: Make (something) continue indefinitely.
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Vulnerable (adjective) /ˈvʌlnərəbl/: Exposed to the possibility of being attacked or harmed, either physically or emotionally.
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Erosion (noun) /ɪˈroʊʒn/: The gradual destruction or diminution of something.
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Hedge (noun) /hedʒ/: A way of protecting oneself against financial loss or other adverse circumstances.
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Destabilize (verb) /diːˈsteɪbəlaɪz/: Make (a system or situation) unstable.
Conclusion
The topic of effects of inflation on savings behavior and spending habits is crucial for IELTS Writing Task 2. To prepare effectively, practice writing essays on related topics such as:
- The role of government in controlling inflation
- How inflation affects different socioeconomic groups
- Long-term economic consequences of high inflation rates
Remember to structure your essay clearly, use a range of vocabulary and sentence structures, and provide specific examples to support your arguments. We encourage you to write your own essay based on the question provided and share it in the comments section for feedback and further practice.