General finance
· bank account: the sum of money credited to a depositor at a bank
· bank deposit: money that people and companies have in bank accounts
· banknote: a piece of paper money
· cash: money in notes and coins, as distinct from cheques (AEchecks)
or money orders
· coin: a small flat rounded piece of metal which is used as money
· currency: coins and banknotes (AE bills) used in a country - euros,
dollars, yen, rubles etc.
· money: coins or banknotes that people use to buy things, or the sum
that they have in a bank account
· money order: a printed order for payment of a specified sum, issued
by a bank or Post Office
Personal finance
· bills: requests for the payment of money owed (or services such as
electricity, gas and telephone connections)
· bonus: extra money given for good financial results
· commission: money paid to salespeople and agents - a certain
percentage of the income the employee generates
· fees: money paid to professional people such as lawyers and architects
· health insurance: financial protection against medical expenses for
sickness or accidental injuries
· income: money received regularly, for work or through investments
· living expenses: money spent on everyday needs such as food, clothes
and public transport
· mortgage: repayments of money borrowed to buy a house or flat
· outgoings: regular sums of money that are spent every week or month
· rent: the money paid for the use of a house or flat (AE apartment)
· overtime: money received for working extra hours
· pension: money paid by a company (government) to a retired person
· salary: money paid monthly by an employer
· social security (AE welfare): money paid by the government to
unemployed and sick people
· tax: money paid to finance government spending
· wages: money paid by the day or the hour, usually received monthly
A financial plan, showing how much money a person or organization expects to earn and spend is called a budget.
Planned monthly budget for next year (ˆ) | |||
Income | Outgoings | ||
Salary (after deductions) | 3,250 | Rent | |
Commission (average) | Bills | ||
Living expenses | 1,200 | ||
Health Insurance | |||
Tax | |||
Total | 3,850 | Total | 3,280 |
Ex. 1 Complete the sentences with the words below.
commission bonus currency earn mortgage tax
overtime pension rent salary social security
A) After I lost my fob, I was living on …………. for three months.
This was difficult, because the amount was much lower than the ……… I had before.
B) I used to work as a salesperson, but I wasn't very successful, so I didn't …………… much …………… .
C) If the company makes 10% more than last year, we will get ……… at the end of the year.
D) It'll take me at least 25 years to repay the …………… on my house.
E) Many European countries now have the same ……………, the euro.
F) My wages aren't very good, so I do a lot of …………… .
G) Nearly 40% of everything I earn goes to the government as ……… .
H) The owner has just increased the …………… on our flat by 15%.
I) When I retire, my …………… will be 60% of my final salary.
Ex.2 Are the following statements TRUE or FALSE? Prove it.
1 Bank deposits are not classified as money.
2 Wages are paid more often than salaries.
3 People working on commission always get paid the same amount.
4 When you stop working at the end of your career, you receive a pension.
5 Most people pay a rent and a mortgage.
Ex.3 Comment on the following.
a) Do you know what the average income is in your country or your future job? b) How important is salary in your choice of career?