Personal finance management and risk assessment have become increasingly common topics in IELTS Writing Task 2, appearing in approximately 15% of tests between 2020-2023. This trend reflects growing global awareness about financial literacy and risk management in personal finances, particularly relevant for test-takers from emerging economies like India, China, and Vietnam.
importance of understanding investment risks early is crucial for developing proper financial planning skills, which is often tested in IELTS Writing Task 2 through various angles.
Sample Question Analysis
Some people believe that teaching financial risk management should be mandatory in high schools. Others think students should focus on traditional subjects instead. Discuss both views and give your opinion.
This question requires:
- Discussion of both perspectives
- Clear position statement
- Relevant examples and explanations
- Logical conclusion
Band 8.5 Sample Essay
In today’s complex financial landscape, there is ongoing debate about whether financial risk management should be a compulsory subject in secondary education. While some argue for its inclusion in the curriculum, others maintain that traditional academic subjects should take precedence. I firmly believe that financial education, including risk management, should be mandatory alongside conventional subjects.
Those who advocate for traditional subjects argue that fundamental academic skills form the foundation of education. Mathematics, sciences, and languages develop critical thinking abilities and provide essential knowledge for further education. Moreover, these subjects have proven their value over generations and are crucial for university admission and career development.
However, importance of building an investment portfolio and understanding financial risks are equally vital life skills. Financial literacy education can prevent young people from making costly mistakes in their early adult years. For instance, many young adults fall into debt or make poor investment decisions simply because they lack basic financial knowledge. Teaching risk management principles would help students understand concepts like diversification, emergency funds, and insurance, preparing them for real-world financial challenges.
importance of credit history for loans demonstrates why early financial education is crucial. Students equipped with financial knowledge are more likely to make informed decisions about loans, investments, and savings, leading to better financial outcomes in their adult lives.
In my view, schools can effectively incorporate financial education without compromising traditional subjects. By integrating risk management concepts into mathematics or economics classes, students can learn both theoretical principles and practical applications. This balanced approach would produce well-rounded graduates prepared for both academic and financial challenges.
Band 6.5 Sample Essay
Nowadays, many people discuss if schools should teach about money risks to students. Some think it’s very important, but others want to keep normal subjects only. I think both are important but teaching about money is more necessary.
First, normal subjects are important because they help students learn basic things. Math and science help students think better and prepare for university. Also, these subjects have been taught for many years and everyone needs them.
But learning about money is also very important today. Many young people have problems with money because they don’t know how to manage it. If schools teach about money risks, students can learn how to save money and avoid debt problems. They can also learn about good and bad investments.
I think schools can teach both normal subjects and money management. They can use math class to teach about money problems. This way, students learn two things at the same time. It will help them in real life when they need to make decisions about money.
Students analyzing financial risks and calculating investment returns in classroom
Analysis of Band Scores
Band 8.5 Essay Analysis
- Task Response (9.0): Thoroughly addresses all parts of the task with well-developed ideas
- Coherence and Cohesion (8.5): Clear progression throughout, effective use of cohesive devices
- Lexical Resource (8.5): Wide vocabulary range used naturally
- Grammar (8.0): Various complex structures with good control
Band 6.5 Essay Analysis
- Task Response (6.5): Addresses main parts but some aspects underdeveloped
- Coherence and Cohesion (6.5): Basic organization but limited use of cohesive devices
- Lexical Resource (6.5): Adequate vocabulary but repetitive
- Grammar (6.5): Mix of simple and complex sentences with some errors
Key Vocabulary
- Financial literacy (n) /faɪˈnænʃəl ˈlɪtərəsi/ – ability to understand and manage financial matters
- Risk management (n) /rɪsk ˈmænɪdʒmənt/ – identification and handling of potential risks
- Diversification (n) /daɪˌvɜːsɪfɪˈkeɪʃn/ – spreading investments to reduce risk
- Curriculum (n) /kəˈrɪkjələm/ – subjects included in a course of study
- Financial outcomes (n) /faɪˈnænʃəl ˈaʊtkʌmz/ – results of financial decisions
how to reduce debt through refinancing offers additional context for understanding personal finance management strategies.
Conclusion
This topic will likely remain relevant in future IELTS tests. Practice writing about related topics such as:
- The role of technology in personal finance management
- Teaching entrepreneurship in schools
- Financial responsibility in the digital age
Share your practice essays in the comments for feedback and improvement suggestions.
