Strategic planning in savings has become an increasingly important topic in IELTS Writing Task 2, appearing frequently in recent years. Based on analysis of past exam questions, this theme often intersects with personal finance, national economics, and future planning. Let’s examine a recent question that exemplifies this trend.
How important is thinking about the future for individuals and countries is a crucial consideration when discussing strategic planning for savings. Let’s analyze a relevant IELTS task 2 question:
Some people believe that saving money is crucial for a nation’s economic development, while others think spending money is better for the economy. Discuss both views and give your opinion.
Question Analysis
This question requires:
- Discussion of two contrasting views about saving vs. spending
- Analysis of economic impacts at national level
- Clear personal position with supporting arguments
- Balanced approach while favoring one side
Strategic planning in savings versus spending for economic growth
Sample Essay 1 (Band 8.0)
The debate between saving and spending as drivers of economic growth has garnered significant attention, particularly in developing economies. While both approaches have their merits, I believe a balanced strategy with emphasis on strategic saving is more beneficial for long-term economic development.
Those who advocate spending argue that active consumption stimulates economic activity. When people spend more, businesses generate higher revenues, leading to increased production, job creation, and overall economic growth. For instance, during economic downturns, many governments encourage consumer spending through stimulus packages to revitalize the economy. This perspective aligns with best savings strategies during high inflation, where strategic spending can actually preserve wealth.
However, proponents of saving emphasize its crucial role in capital formation and investment. When individuals and institutions save, banks can channel these funds into productive investments, infrastructure development, and business expansion. This creates a sustainable foundation for economic growth. Additionally, high national savings rates, as demonstrated by countries like Singapore and South Korea, have historically correlated with rapid economic development and increased resilience to financial crises.
In my opinion, while both saving and spending are essential economic activities, strategic saving should be prioritized for sustainable economic development. This is particularly relevant when considering the importance of emergency savings for self-employed individuals and national economic stability. A balanced approach, where savings are channeled into productive investments while maintaining healthy consumption levels, creates the most favorable conditions for long-term economic growth.
Sample Essay 2 (Band 6.5)
The question of whether saving or spending money is better for economic development is widely discussed today. Both approaches have different effects on the economy, and I think both are important but saving is more beneficial.
People who support spending say it helps the economy grow faster. When people buy more things, shops make more money and factories need to make more products. This creates jobs and helps businesses grow. For example, in many countries, when people spend more during festivals, the economy becomes more active.
On the other hand, saving money also helps the economy. When people put money in banks, these banks can lend money to businesses for expansion. Also, having savings helps people and countries deal with unexpected problems. The impact of digital currencies on savings has made this even more important in modern economies.
I believe saving money is more important because it helps build a stronger economy. While spending is necessary, too much spending without saving can cause problems. The best way is to save some money while also spending enough to keep the economy running.
Key Vocabulary
- Capital formation (n) /ˈkæpɪtl fɔːˈmeɪʃn/ – The creation of capital assets
- Economic resilience (n) /ˌiːkəˈnɒmɪk rɪˈzɪljəns/ – Ability to recover from economic shocks
- Stimulus package (n) /ˈstɪmjʊləs ˈpækɪdʒ/ – Government measures to boost economy
- Infrastructure development (n) /ˈɪnfrəˌstrʌktʃə dɪˈveləpmənt/ – Building of basic facilities
- Consumer spending (n) /kənˈsjuːmə ˈspendɪŋ/ – Money spent by people on goods and services
Conclusion
This topic will likely remain relevant in future IELTS exams. Practice writing about similar themes like:
- The role of personal savings in national development
- Government policies on saving versus spending
- The impact of saving habits on economic stability
Share your practice essays in the comments section for feedback and improvement suggestions.
