Investment and financial planning topics have become increasingly prevalent in IELTS Writing Task 2, appearing in approximately 15% of recent tests. Understanding how global markets affect investment strategies is crucial for achieving a high band score on these questions. Let’s examine a frequently tested question type and analyze sample responses at different band levels.
IELTS Writing Task 2 Sample Essay on Investment Strategies
Question Analysis
Some people believe that individuals should be solely responsible for their financial planning and investment decisions. Others argue that governments should provide guidance and support for personal financial management. Discuss both views and give your opinion.
This question requires:
- Discussion of two contrasting viewpoints
- Analysis of individual vs. governmental responsibility
- A clear personal stance
- Relevant examples and supporting evidence
Band 8 Sample Essay
Understanding the importance of strategies for saving for major life events, this essay presents a balanced perspective on financial planning responsibility.
While some advocate for complete individual autonomy in financial planning, I believe a balanced approach incorporating both personal responsibility and government guidance is most effective.
Those who support individual responsibility argue that personal finance is inherently private and should remain free from government interference. They contend that individuals best understand their unique financial circumstances and goals, making them better positioned to make appropriate investment decisions. Furthermore, self-directed financial planning encourages people to develop crucial money management skills and take ownership of their financial future.
However, proponents of government involvement emphasize that how inflation influences personal financial planning can be complex and challenging for average citizens to navigate. They maintain that government guidance can protect vulnerable individuals from financial fraud and poor investment choices. Additionally, state-sponsored financial education programs can enhance financial literacy across all demographic groups.
In my view, while personal responsibility should remain central to financial planning, government support plays a vital complementary role. The optimal approach would involve governmental bodies providing educational resources and protective frameworks while respecting individual autonomy in final decision-making. This balanced system would enable citizens to make informed choices while benefiting from institutional safeguards.
Band 6.5 Sample Essay
Some people think financial planning should be done by individuals alone, but others want government help. I will discuss both sides and give my opinion.
On one side, many believe personal finance is private. They say each person knows their own money needs best. For example, a young worker might want to save for a house, while an older person needs retirement savings. Also, when people manage their own money, they learn important skills.
However, others think government help is needed because importance of diversification in financial investments is hard to understand. Many people lose money from bad investments or scams. The government can teach people about safe investing and protect them from fraud. In my country, many people lost savings because they didn’t know about investment risks.
I think both sides have good points, but government help is important. While people should make their own choices, they need good information and protection. The government should provide financial education but not control people’s decisions.
Key Vocabulary
- Financial literacy (n) /faɪˈnænʃəl ˈlɪtərəsi/ – ability to understand and manage financial matters
- Investment portfolio (n) /ɪnˈvestmənt pɔːrtˈfəʊliəʊ/ – collection of financial investments
- Fiscal responsibility (n) /ˈfɪskəl rɪˌspɒnsəˈbɪlɪti/ – careful management of financial resources
- Risk assessment (n) /rɪsk əˈsesmənt/ – evaluation of potential financial risks
- Market volatility (n) /ˈmɑːkɪt ˌvɒləˈtɪlɪti/ – rapid changes in market values
Conclusion
The topic of financial planning and investment strategies continues to be relevant in IELTS Writing Task 2. Practice writing about related topics such as:
- Role of technology in personal finance
- Financial education in schools
- Impact of global economic changes on personal investments
Share your practice essays in the comments section for feedback and improvement suggestions.
