Managing Your Budget Wisely
Managing money is one of the most important skills in modern life. Whether you are a student or already working, you need to think about how much you can afford and how to use your money wisely. Most people keep their savings in a bank account, but even with that, there are times when someone feels completely broke and unable to pay for basic needs. This is why it is useful to plan a monthly budget.
When you need cash quickly, you can use a cash machine to remove money. However, it is essential to consider the general cost of living in your area – rent, food, and transportation are not free. Many companies charge customers a price for their services, and every expense adds up. At the same time, your income – usually from work – must cover all these costs.
Some people try to invest their money to increase their wealth, but investing always carries risk. Others must deal with different fees, such as university tuition or administrative costs. Students often rely on government funding or their families for financial assistance. Sometimes friends may even lend money, though it is not always wise to live off other people’s generosity.
For larger amounts, banks can give a loan, which must be paid back with interest. Businesses take loans to make a profit, and individuals often need them to buy a house. In fact, most people cannot buy property without a mortgage. Before moving into a flat, renters usually have to put down a deposit as security.
A regular worker usually receives a salary, which strongly influences their standard of living. Those with higher salaries can enjoy more comfort, while those with lower pay must calculate every euro carefully. People with limited resources are sometimes called stingy if they avoid spending too much, but in truth, careful planning is often smarter than being careless. After all, money is too valuable to waste.
Finally, it is worth remembering that not everything in life is measured in money. Still, when you ask yourself if a product or service is really worth the price, you are already making responsible financial decisions. Good money management is not just about numbers – it is about choices that shape your life.
Key vocabulary:
afford — [əˈfɔːd] — to be able to buy or do something because you have enough money or time; atļauties
bank account — [ˈbæŋk əˌkaʊnt] — an arrangement with a bank in which the customer puts in and removes money and the bank keeps a record of it; bankas konts
broke — [brəʊk] — without money; to not have any money; izputējis
budget — [ˈbʌdʒ.ɪt] — the money that is available to a person or an organization and a plan of how it will be spent over a period of time; budžets
budget — [ˈbʌdʒ.ɪt] — the money that is available to a person or an organization and a plan of how it will be spent over a period of time; budžets
cash machine (also: cashpoint) — [ˈkæʃ məˌʃiːn] — a machine, usually in a wall outside a bank, from which you can take money out of your bank account using a special card; bankas automāts, bankomāts
cost of living — [ˌkɒst əv ˈlɪv.ɪŋ] — the amount of money needed for basic necessities like housing, food, taxes, and healthcare; dzīves dārdzība
charge (for) — [tʃɑːdʒ] — to ask an amount of money for something, especially a service or activity; prasīt / ņemt maksu
expense — [ɪkˈspens] — the money that you spend on something; izdevumi
income — [ˈɪŋ.kʌm] — money that you earn by working, investing, or producing goods; ienākums, ieņēmums
invest — [ɪnˈvest] — to give money to a bank, business, etc, or buy something, because you hope to get a profit; ieguldīt, investēt
fee — [fiː] — an amount of money that you pay to do something, to use something, or to get a service; maksa
funding — [ˈfʌndɪŋ] — money given by a government or organization for an event or activity; finansējums, līdzekļi
expense — [ɪkˈspens] — the money that you spend on something; izdevumi
income — [ˈɪŋ.kʌm] — money that you earn by working, investing, or producing goods; ienākums, ieņēmums
invest — [ɪnˈvest] — to give money to a bank, business, etc, or buy something, because you hope to get a profit; ieguldīt, investēt
fee — [fiː] — an amount of money that you pay to do something, to use something, or to get a service; maksa
funding — [ˈfʌndɪŋ] — money given by a government or organization for an event or activity; finansējums, līdzekļi
grant — [ɡrɑːnt] — an amount of money provided by a government or organization for a special purpose; dotācija, subsīdija
live off — [lɪv ɒf] — to receive the money you need to live from somebody/something because you do not have any yourself; dzīvot uz kāda rēķina
lend — [lend] — If a bank or other organization lends money, it gives money to someone who agrees that they will pay the money back in the future, usually with extra money added to the original amount; aizdot
loan — [ləʊn] — an amount of money that is borrowed, often from a bank, and has to be paid back, usually together with an extra amount of money that you have to pay as a charge for borrowing; aizdevums, aizņēmums
make a profit — [ˈprɒf.ɪt] — earn more money from selling something or running a business than you spend on costs; gūt ienākumus
mortgage (also: home loan) — [ˈmɔː.ɡɪdʒ] — a legal agreement by which a bank or similar organization lends you money to buy a house, etc., and you pay the money back over a particular number of years; the sum of money that you borrow; hipotēka, ķīlu zīme
put down a deposit — [dɪˈpɒzɪt] — pay part of the total price of something (for example, a flat, car, or piece of furniture) in advance, to show that you intend to buy or rent it. The rest of the money is usually paid later; veikt pirmo iemaksu
make a profit — [ˈprɒf.ɪt] — earn more money from selling something or running a business than you spend on costs; gūt ienākumus
mortgage (also: home loan) — [ˈmɔː.ɡɪdʒ] — a legal agreement by which a bank or similar organization lends you money to buy a house, etc., and you pay the money back over a particular number of years; the sum of money that you borrow; hipotēka, ķīlu zīme
put down a deposit — [dɪˈpɒzɪt] — pay part of the total price of something (for example, a flat, car, or piece of furniture) in advance, to show that you intend to buy or rent it. The rest of the money is usually paid later; veikt pirmo iemaksu
salary — [ˈsæl.ər.i] — a fixed amount of money agreed every year as pay for an employee, usually paid directly into his or her bank account every month; darba alga
standard of living (also: living standard) — [ˌstæn.dəd əv ˈlɪv.ɪŋ] — the amount of money and level of comfort that a particular person or group has; dzīves līmenis
stingy — [ˈstɪn.dʒi] — unwilling to spend money; not generous; skops
waste — [weɪst] — an unnecessary or wrong use of money, substances, time, energy, abilities, etc.; izšķiešana
standard of living (also: living standard) — [ˌstæn.dəd əv ˈlɪv.ɪŋ] — the amount of money and level of comfort that a particular person or group has; dzīves līmenis
stingy — [ˈstɪn.dʒi] — unwilling to spend money; not generous; skops
waste — [weɪst] — an unnecessary or wrong use of money, substances, time, energy, abilities, etc.; izšķiešana
worth — [wɜːθ] — having a particular value, especially in money; vērtība
Practice: now that you have learned the key vocabulary, it is time to use it in practice. Answer the discussion-type questions, which will help you develop the ability to give longer answers and practise expressing your personal opinion — just as in an English exam or real conversation. For each question, an answer prompt is available to guide you. Revise the phrases used to formulate your opinion, thoughts you covered in the previous theoretical chapter: Insights into Family Relationships
Discussion-Type Questions:
1. Is it better to save money or to spend it on experiences?
"Some people argue that saving is more important, because it provides security in the future. For instance, savings can help in emergencies. On the other hand, spending money on experiences such as travel can make life more enjoyable and memorable. To some extent, I agree that saving is necessary, but as I see it, spending on experiences adds real value to life. I firmly believe that memories and personal growth are often worth more than the numbers in a bank account."
2. Is it better to live on a strict budget or to allow yourself some flexibility?
"Some argue that a strict budget helps people stay disciplined and avoid unnecessary spending. For instance, setting limits on entertainment can save money. However, others believe flexibility is important, because life is unpredictable. On the whole, I would say that the best approach is a balance: following a plan but leaving space for small pleasures. It seems to me that this combination gives people both security and freedom, and I am convinced that it is more realistic than choosing only one side."
3. Do you think young people today are good at managing their money?
"It is often claimed that many young people spend too much on clothes or technology. For example, some prefer buying the newest phone instead of saving. However, others are quite responsible and keep track of their expenses using apps. From my perspective, it depends on the individual, but on the whole, I would say that money management among young people could be improved. There is no doubt that learning financial skills early would benefit them in the long run."
4. Should schools teach students how to manage a budget?
"Many would say schools should focus only on traditional subjects like maths or science. Nevertheless, one strong reason for including budgeting is that it prepares students for real life. For example, learning how to plan monthly expenses can prevent debt later. As far as I’m concerned, financial education is just as important as academic knowledge. To some extent, I agree that schools cannot teach everything, but I firmly believe that they should at least provide some lessons on budgeting and financial skills."
5. Should parents give their children pocket money, or should children earn it themselves?
"One view is that parents should give pocket money regularly, because it teaches children how to manage money. For example, they can learn to save for something they want. However, others argue that earning money is better, as it builds responsibility. In my view, both ways are useful, but it seems to me that earning money gives stronger lessons about real life. I am convinced that children who work for their money understand its value more deeply."
"Some people argue that saving is more important, because it provides security in the future. For instance, savings can help in emergencies. On the other hand, spending money on experiences such as travel can make life more enjoyable and memorable. To some extent, I agree that saving is necessary, but as I see it, spending on experiences adds real value to life. I firmly believe that memories and personal growth are often worth more than the numbers in a bank account."
2. Is it better to live on a strict budget or to allow yourself some flexibility?
"Some argue that a strict budget helps people stay disciplined and avoid unnecessary spending. For instance, setting limits on entertainment can save money. However, others believe flexibility is important, because life is unpredictable. On the whole, I would say that the best approach is a balance: following a plan but leaving space for small pleasures. It seems to me that this combination gives people both security and freedom, and I am convinced that it is more realistic than choosing only one side."
3. Do you think young people today are good at managing their money?
"It is often claimed that many young people spend too much on clothes or technology. For example, some prefer buying the newest phone instead of saving. However, others are quite responsible and keep track of their expenses using apps. From my perspective, it depends on the individual, but on the whole, I would say that money management among young people could be improved. There is no doubt that learning financial skills early would benefit them in the long run."
4. Should schools teach students how to manage a budget?
"Many would say schools should focus only on traditional subjects like maths or science. Nevertheless, one strong reason for including budgeting is that it prepares students for real life. For example, learning how to plan monthly expenses can prevent debt later. As far as I’m concerned, financial education is just as important as academic knowledge. To some extent, I agree that schools cannot teach everything, but I firmly believe that they should at least provide some lessons on budgeting and financial skills."
5. Should parents give their children pocket money, or should children earn it themselves?
"One view is that parents should give pocket money regularly, because it teaches children how to manage money. For example, they can learn to save for something they want. However, others argue that earning money is better, as it builds responsibility. In my view, both ways are useful, but it seems to me that earning money gives stronger lessons about real life. I am convinced that children who work for their money understand its value more deeply."