Teaching Money Vocabulary That Matters

Hi, I'm teacher Loren.

Want to make your financial vocabulary more engaging and relevant? Let's dive into personal finance and use the concepts of income and outgoings to teach essential English words!

A Currency

Money used in a country – euros, dollars, yen, etc. – is its currency. Money in notes (banknotes) and coins is called cash. Most payments are made without using cash, for example, by bank transfer. Most people and organizations have bank accounts. Most of this is on paper – existing in records on computers – and only a very small amount exists in the form of cash in the bank.

Personal finance

All the money a person receives or earns as payment is his or her income. This can include:

• a salary: money paid monthly by an employer, or wages: money paid by the day or the hour, usually received weekly.   

• overtime: money received for working extra hours.

• commission: money paid to salespeople and agents – a certain percentage of the income the company receives.   

• a bonus: extra money given for meeting a target or for good financial results

• fees: money paid to professional people such as lawyers and architects

• social security: money paid by the government to unemployed and sick people   

• a pension: money paid by a company or the government to a retired person.

Salaries and wages are often paid after deductions such as social security charges and income tax.   

Amounts of money that people have to spend regularly are outgoings. These often include:

• living expenses: money spent on everyday needs such as food, clothes and public transport.

• bills: requests for the payment of money owed for services such as electricity, gas and telephone connection.   

• rent: the money paid for the use of a house or flat.

• mortgage repayments: money borrowed to buy a house or flat

• health insurance: financial protection against medical expenses for sickness or accidental injury.   

• tax: money paid to finance government spending.

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Now think and answer:

• "What currency does your country use? Do you prefer using cash or cards? Why?"

• "What are your biggest outgoings? What do you spend money on regularly?"

• "What is the total income? What are the biggest outgoings? Is this budget balanced?"

Key Vocabulary:

• Currency: The money used in a country.

• Cash: Notes and coins.

• Salary/Wages: Money paid for work.

• Overtime: Extra hours worked.

• Commission: Percentage of sales earned.

• Bonus: Extra money for good performance.

• Fees: Payment for professional services.

• Social Security/Welfare: Government support.

• Pension: Retirement income.

• Living Expenses: Daily costs.

• Bills: Payments for services.

• Rent/Mortgage: Housing costs.

• Health Insurance: Medical protection.

• Tax: Money paid to the government.

• Budget: Financial plan.

Let's make learning English practical and engaging by exploring the world of money!