The topic of saving money for significant life events has become increasingly prevalent in IELTS Writing Task 2 examinations. Based on analysis of past papers and current trends, questions about financial planning and savings have appeared in approximately 15% of recent tests, particularly in Asian test centers. Understanding this topic is crucial as it combines personal finance with broader economic and social implications.
importance of savings accounts for long-term goals shows that proper financial planning is essential for achieving major life milestones. Let’s examine a recent IELTS question on this topic.
Question Analysis
Some people believe that saving money for major life events such as weddings, education, or retirement should be mandatory, while others think it should be a personal choice. Discuss both views and give your opinion.
This question requires candidates to:
- Discuss arguments for mandatory savings
- Examine perspectives supporting personal choice
- Present and justify their own viewpoint
Sample Essay 1 (Band 8.5)
Financial planning for significant life events is a crucial aspect of modern life, and there is ongoing debate about whether such savings should be compulsory or left to individual discretion. While both approaches have merit, I believe a balanced combination of mandatory and voluntary savings is most beneficial.
Those supporting mandatory savings present compelling arguments. Firstly, required saving schemes ensure financial security for major life events, preventing individuals from facing hardship during retirement or emergencies. Additionally, mandatory savings contribute to economic stability by reducing the burden on social welfare systems. For example, Singapore’s Central Provident Fund demonstrates how compulsory savings can successfully provide for healthcare, housing, and retirement needs.
importance of saving for future medical expenses is particularly relevant when considering the opposing viewpoint. Advocates of personal choice argue that individuals should have autonomy over their financial decisions. They contend that circumstances and priorities vary significantly among people, making standardized saving requirements potentially counterproductive. Furthermore, some may prefer investing in education or business ventures rather than traditional savings.
In my opinion, a hybrid approach would be most effective. While basic mandatory savings ensure essential protection, additional voluntary savings allow for personalization based on individual goals and circumstances. This system could include compulsory retirement contributions supplemented by optional savings schemes for specific objectives like education or property purchase.
Comparison of mandatory and voluntary savings approaches
Sample Essay 2 (Band 6.5)
Nowadays, many people discuss whether saving money for important life events should be forced or voluntary. This essay will look at both sides and share my thoughts.
People who support mandatory savings have good reasons. First, many people don’t save enough money by themselves and face problems later. For example, when they get old and can’t work anymore, they might not have enough money to live. Also, if savings are mandatory, the government won’t need to spend so much money helping people.
However, other people think saving should be our own choice. They say that everyone has different situations and needs. Some people might need to use their money now for important things like starting a business or helping their family. Also, some people might prefer different ways to prepare for the future, like buying property.
importance of balancing credit with savings shows why I think both sides have good points. Maybe the best way is to have some required savings but also let people choose how to save extra money. This way, everyone has some security but still has freedom with their money.
Key Vocabulary
- mandatory (adj.) /ˈmændətɔːri/ – required by law
- discretion (n.) /dɪˈskreʃən/ – freedom to decide
- autonomy (n.) /ɔːˈtɒnəmi/ – independence in decision-making
- compelling (adj.) /kəmˈpelɪŋ/ – convincing and forceful
- counterproductive (adj.) /ˌkaʊntəprəˈdʌktɪv/ – having the opposite effect to what is intended
Conclusion
The topic of savings for major life events remains significant in IELTS Writing Task 2. Future questions might explore related themes such as:
- Government’s role in personal financial planning
- Impact of technology on saving habits
- Cultural differences in saving practices
Practice writing your own essay on this topic and share it in the comments for feedback and discussion.
