14 | Financial planning and investments

Today you will learn 5 new English words related to "Financial planning and investments"

TODAY’S TOPIC: “Financial planning and investments”

Being well versed in “financial planning and investments” empowers you as an ESL learner to navigate your financial life effectively in a new environment. Understanding basic concepts like budgeting, saving, and responsible spending will allow you to manage your income wisely and avoid financial difficulties. By familiarizing yourself with today’s financial terminology, you can gain the confidence to make informed decisions about your financial well-being and build a secure future! Let’s jump right in!


1 | Budget

  • Part of speech: Noun

  • Definition: A financial plan outlining income and expenses.

  • Example Sentences:

    1. Creating a realistic budget helps track your spending and avoid overspending.

    2. Allocate portions of your income for different categories in your budget, like housing, food, and transportation.

    3. Regularly review and adjust your budget as your income or expenses change.

2 | Debt

  • Part of speech: Noun

  • Definition: Money owed to another person or institution.

  • Example Sentences:

    1. Managing debt responsibly is crucial for financial stability.

    2. High-interest debt can be a significant financial burden.

    3. Developing a plan to pay off existing debt is essential for long-term financial well-being.

3 | Savings

  • Part of speech: Noun

  • Definition: Money set aside for future use.

  • Example Sentences:

    1. Building an emergency fund through regular savings is crucial for unexpected expenses.

    2. Setting financial goals, like saving for a down payment on a house, motivates consistent savings.

    3. Different savings options, like high-yield savings accounts, can help your money grow over time.

4 | Investment

  • Part of speech: Noun

  • Definition: The act of putting money into something with the expectation of future profit.

  • Example Sentences:

    1. Investing in your retirement early allows your money to grow over time.

    2. Researching different investment options like stocks, bonds, or mutual funds is crucial before making decisions.

    3. Diversifying your investments helps mitigate risk and protect your financial future.

5 | Retirement

  • Part of speech: Noun

  • Definition: The period after one stops regular paid work.

  • Example Sentences:

    1. Planning for a comfortable retirement requires starting early and saving consistently.

    2. Different retirement savings options, like 401(k) plans, offer tax advantages.

    3. Consulting a financial advisor can help you develop a personalized retirement plan.


Building a secure financial future requires a solid foundation. This starts with creating a realistic budget that tracks your income and expenses, allowing you to identify areas to cut back and prioritize savings. Managing debt responsibly is crucial, as high-interest payments can hinder your progress. While paying off existing debts is important, consider allocating a portion of your savings towards investments. Remember, consulting with a financial advisor can be beneficial in navigating different investment options and developing a personalized plan to secure your financial well-being, especially when considering long-term goals like a comfortable retirement.

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