In this second of two online exercises on essential financial English vocabulary, we will continue to look at the basic verbs and vocabulary that are used in English to talk about finance and using/managing money.
In this part, we will look at more examples of basic/essential vocabulary. Although this exercise uses an example of how somebody uses and manages their money in a non-business situation, this vocabulary can also be used with the same meaning in business situations too.
Click here to go to the first part of this 'Essential financial English vocabulary exercise'
In the following conversation between two work colleagues (Peter and Juan), Peter continues to explain to Juan how he uses and manages his money in his private/personal life.
From the context, try to guess what the meaning of the words/phrases in bold are. Then do the quiz at the end to check if you are right.
Juan:'Could I ask you how much money you earn from working here? How much money you are paid in your salary?'
Peter:'Each year I earn about £70,000. But that is my gross salary. That is before the government removes taxes, the money the government takes from people to pay for its services. So after taxes have been removed, my net salary (the money that I obtain at the end) is about £54,000.'
Juan:'It's not a lot of money to live on in London!'
Peter:'Yes, I know. But I invested some money in the past. I bought some stocks and shares in companies. So, every year I earn another £6,000 from them. So my total income, the money I receive each year, is £60,000.'
Juan:'So, what do you do with your income? What do you spend it on?'
Peter:'I spend my money like most people, on food, bills, clothes, holidays etc... I also have some debts. I have credit cards, loans and a mortgage from the bank. I owe the bank a lot of money, money which I borrowed from them in the past to buy things. So, I repay £6,000 to the bank each year.'
Juan:'Do you save a lot of money? Put money into a bank account for the future?'
Peter:'Yes. I try to save £2,000 each month in the bank.'
Juan:'Do you have a car?'
Peter:'I can drive a car, but I don't own a car. With my income, it's too expensive to have a car in London. You have to buy the car and then you have to pay for petrol, parking, insurance etc... I can't afford to have a car in London.'
Match the words/phrases in bold from the above text to each of the definitions/descriptions below. Click on the "Check" button at the bottom of the quiz to check your answers.
When the answer is correct, two icons will appear below the answer. The "" icon contains extra information on the word/phrase. In the "" icon, you can listen to the pronunciation of the word/phrase.
Now that you understand the meaning of the words/phrases and when to use them, practise using them by creating your own sentences with them in English. Also click on the "" icon under each correct answer and listen how each is pronounced correctly.
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