27 | Personal Finance management

Today you will learn 5 new English words related to "Personal Finance management"

TODAY’S TOPIC: “Personal Finance management”

Learning how to communicate about “personal finance management” is important for you, an ESL learner, because it helps you understand money-related topics in English. Knowing financial words and concepts, like saving, budgeting, and investments, not only improves language skills, but also allows you to make smart decisions with your money. Today’s vocabulary words will help you participate in deeper conversations about “personal finance management”. Let’s jump right in!


1 | Budget

  • Part of speech: Noun/Verb

  • Definition: A financial plan that outlines income and expenses; to plan and allocate funds.

  • Example Sentences:

    1. (Noun example) Creating a monthly budget helps track spending and saving goals.

    2. (Verb example) It's important to budget wisely to ensure financial stability.

    3. Effective budgeting is key to managing personal finances successfully.

2 | Savings

  • Part of speech: Noun

  • Definition: Money set aside for future use or emergencies.

  • Example Sentences:

    1. Building a savings account provides a financial safety net.

    2. Saving a portion of income is a wise financial habit.

    3. She used her savings to cover unexpected medical expenses.

3 | Investment

  • Part of speech: Noun

  • Definition: The act of allocating money with the expectation of generating income or profit.

  • Example Sentences:

    1. Diversifying investments helps manage risk in financial portfolios.

    2. Long-term investment strategies often yield higher returns.

    3. Understanding different investment options is essential for financial growth.

4 | Credit

  • Part of speech: Noun

  • Definition: The ability to borrow money with the promise of repayment; an arrangement for deferred payment.

  • Example Sentences:

    1. Maintaining a good credit score is important for loan approvals.

    2. Responsible credit card use builds a positive credit history.

    3. Understanding the terms of credit agreements is crucial for financial literacy.

5 | Debt

  • Part of speech: Noun

  • Definition: Money owed to others; an obligation to repay borrowed funds.

  • Example Sentences:

    1. Managing debt requires a strategic repayment plan.

    2. Accumulating too much debt can lead to financial stress.

    3. Paying off high-interest debt should be a priority for financial well-being.


Personal finance management involves creating a budget, a financial roadmap that outlines income and expenses. A well-designed budget allocates funds for savings, ensuring that a portion of income is set aside for future needs or emergencies. Savvy individuals also consider investment opportunities to grow their wealth over time. While credit can be a useful tool for making significant purchases, managing it responsibly is crucial to maintain a positive credit history. It's essential to strike a balance between using credit wisely and avoiding excessive debt. Successful personal finance management hinges on understanding the interplay between these elements, allowing individuals to make informed decisions, achieve financial goals, and secure a stable financial future.

Access the practice lessons for today’s vocabulary words and master your pronunciation by going to the “English With Tiffani” app.