Financial literacy has become an increasingly important topic in recent years, particularly in the context of personal wealth management. This subject has appeared in various forms in IELTS Writing Task 2 questions, reflecting its growing relevance in today’s society. Based on past exam trends and the current global economic climate, it’s highly likely that questions related to financial literacy will continue to feature prominently in future IELTS tests.
One of the most relevant and frequently occurring question types on this topic is as follows:
Some people believe that schools should teach children about managing money and financial planning. Others think that these skills are best learned outside of school. Discuss both views and give your own opinion.
Let’s analyze this question and provide sample essays for different band scores, along with detailed explanations of why each essay corresponds to its respective band.
Question Analysis
This question is a classic example of a discussion essay with an opinion component. It requires candidates to:
- Discuss the view that schools should teach financial literacy
- Discuss the opposing view that these skills are best learned outside school
- Present and justify their own opinion on the matter
The key challenge here is to present a balanced discussion of both viewpoints before clearly stating and supporting your own stance. The importance of financial literacy for young people is a crucial aspect to consider when formulating your response.
Sample Essay 1 (Band 8-9)
Financial literacy is undeniably a critical life skill in today’s complex economic landscape. While some argue that schools should incorporate financial education into their curricula, others contend that these skills are more effectively acquired outside the classroom. This essay will examine both perspectives before presenting my own viewpoint.
Proponents of school-based financial education argue that it ensures a standardized and comprehensive approach to teaching money management skills. By integrating financial literacy into the core curriculum, schools can guarantee that all students, regardless of their background, receive essential knowledge about budgeting, saving, and investing. Moreover, schools can provide a structured environment for learning these skills, with qualified teachers and age-appropriate materials. This approach can help bridge the gap in financial knowledge that often exists due to socioeconomic disparities.
On the other hand, those who favor learning financial skills outside of school argue that real-world experience is the best teacher. They contend that practical exposure to managing money through part-time jobs, family budgeting, or personal savings accounts can provide more meaningful and lasting lessons than theoretical classroom instruction. Additionally, this perspective emphasizes the role of parents and guardians in imparting financial wisdom, as they can tailor lessons to their children’s specific circumstances and cultural values.
In my opinion, a combination of both approaches would be most effective in fostering financial literacy among young people. Schools should provide a foundation of financial knowledge, covering topics such as basic economics, budgeting, and the principles of saving and investing. However, this classroom learning should be complemented by real-world applications and family involvement. For instance, schools could organize practical exercises like mock stock market simulations or budgeting projects that involve parental participation.
In conclusion, while both school-based and external learning have their merits, a balanced approach that combines formal education with practical experience is likely to yield the best results in developing financial literacy. This integrated strategy would ensure that young people are well-equipped to navigate the complex financial landscape they will face as adults.
Financial literacy education in a classroom setting
Essay 1 Analysis (Band 8-9)
This essay demonstrates excellent qualities that justify a high band score:
Task Response: The essay fully addresses all parts of the task, discussing both viewpoints and clearly presenting the writer’s opinion. It provides well-developed ideas and relevant examples.
Coherence and Cohesion: The essay is logically organized with clear progression throughout. It uses a range of cohesive devices effectively (e.g., “Moreover,” “On the other hand,” “Additionally”).
Lexical Resource: The essay uses a wide range of vocabulary with very natural and sophisticated control (e.g., “undeniably,” “contend,” “socioeconomic disparities”).
Grammatical Range and Accuracy: It demonstrates a wide range of grammatical structures used accurately and appropriately (e.g., complex sentences, passive voice, conditional statements).
The essay presents a balanced discussion and a nuanced opinion, showing a sophisticated understanding of the topic. The importance of financial education for financial independence is effectively addressed, highlighting the essay’s comprehensive approach to the subject.
Sample Essay 2 (Band 6-7)
In today’s world, money management is a very important skill. Some people think schools should teach children about managing money and financial planning, while others believe these skills are better learned outside school. This essay will discuss both views and give my opinion.
There are good reasons why schools should teach financial skills. First, it ensures that all children get the same basic knowledge about money. Many families might not be able to teach their children about finances, so school lessons can help fill this gap. Also, teachers can use proper methods to teach these skills in a way that children can understand easily.
However, some people think financial skills are best learned outside school. They say real-life experience is more valuable than classroom learning. For example, children can learn by helping with family budgets or by managing their pocket money. These practical experiences can teach them more than just theory from books.
In my opinion, both school education and real-life experience are important for learning about money. Schools can provide the basic knowledge and theory, while experiences outside school can help children apply what they’ve learned. I think schools should include some financial education in their programs, but parents should also play a role in teaching their children about money.
To conclude, while there are benefits to both school-based and external learning of financial skills, I believe a mix of both approaches would be most effective. This way, children can get a good foundation of knowledge from school and practical experience from real life.
Essay 2 Analysis (Band 6-7)
This essay demonstrates good qualities that justify a band score of 6-7:
Task Response: The essay addresses all parts of the task, discussing both viewpoints and presenting the writer’s opinion. However, the ideas could be more fully developed with more specific examples.
Coherence and Cohesion: The essay is generally well-organized with clear progression. It uses some cohesive devices, but not always with complete flexibility.
Lexical Resource: The essay uses an adequate range of vocabulary, though it lacks the sophistication and precision of higher band scores. Some attempts at less common vocabulary are made (e.g., “fill this gap,” “practical experiences”).
Grammatical Range and Accuracy: It uses a mix of simple and complex sentence structures with generally good control. There are some errors, but they do not impede communication.
The essay presents a clear discussion and opinion, but lacks the depth and nuance of higher band essays. It touches on the benefits of using a financial advisor, albeit indirectly, when discussing the role of teachers in financial education.
Key Vocabulary to Remember
Financial literacy (noun) – /faɪˈnænʃəl ˈlɪtərəsi/ – The ability to understand and effectively use various financial skills
Curriculum (noun) – /kəˈrɪkjələm/ – The subjects comprising a course of study in a school or college
Socioeconomic (adjective) – /ˌsoʊsioʊˌekəˈnɒmɪk/ – Relating to or concerned with the interaction of social and economic factors
Budgeting (noun) – /ˈbʌdʒɪtɪŋ/ – The process of creating a plan to spend your money
Disparity (noun) – /dɪˈspærəti/ – A great difference
Proponent (noun) – /prəˈpoʊnənt/ – A person who advocates for something
Integrate (verb) – /ˈɪntɪɡreɪt/ – To combine one thing with another so that they become a whole
Standardized (adjective) – /ˈstændərdaɪzd/ – Having been made to conform to a standard
Comprehensive (adjective) – /ˌkɑːmprɪˈhensɪv/ – Including or dealing with all or nearly all elements or aspects of something
Nuanced (adjective) – /ˈnuːɑːnst/ – Characterized by subtle shades of meaning or expression
Students applying financial literacy skills in real-world scenario
Conclusion
The Importance Of Financial Literacy In Personal Wealth Management is a topic that’s likely to remain relevant in IELTS Writing Task 2. As we’ve seen from the sample essays, this subject allows for rich discussion of educational approaches and their real-world applications. When tackling such questions, remember to present a balanced view of both perspectives before articulating your own opinion.
To further enhance your skills, consider practicing with similar prompts. For instance, you might write an essay on “The role of financial literacy education in reducing economic inequality” or “The importance of teaching budgeting skills to high school students.” Remember to structure your essay clearly, use a range of vocabulary and grammatical structures, and support your points with relevant examples.
We encourage you to practice writing your own essay on this topic and share it in the comments section below. This active practice is an excellent way to improve your writing skills and prepare for the IELTS exam.
