Money and finance are popular topics in IELTS Speaking because they relate to everyone’s daily life. Candidates are often asked how they manage money, whether they prefer saving or spending, and their thoughts on financial habits. Below are sample answers and useful vocabulary you can use to sound more natural and fluent in your IELTS Speaking test.
Useful Vocabulary & Phrases
- budget (noun) — a plan of how to spend your money
- budget wisely (verb) — manage money carefully
- expenses (noun) — money you spend on things like rent, food, or bills
- income (noun) — money you earn, usually from a job
- savings (noun) — money kept aside for future use
- financial stability (noun) — being able to cover expenses without stress
- splurge on something (verb) — spend a lot of money on something unnecessary
- save for a rainy day (idiom) — save money for future emergencies
- impulse purchase (noun) — buying something suddenly without planning
- digital payments (noun) — payments made using apps or online platforms
- credit card debt (noun) — money owed because of using credit cards
- financial literacy (noun) — understanding how money works, including saving and investing
- interest rate (noun) — the cost of borrowing or the return from saving
- to be broke (idiom) — to have no money
- cut down on expenses (phrase) — reduce the amount of money you spend
Using a mix of these words and expressions will help make your answers sound more natural and advanced.
Sample Questions & Answers
Below are common IELTS Speaking Part 1 questions about finance, along with natural Band 7–8 level answers.
1. Do you prefer to save money or spend money?
Personally, I prefer saving money because it gives me a sense of financial security. Of course, I do spend on things that make me happy, but I always try to set aside a certain amount every month. It’s important for me to have some savings for a rainy day or future plans like traveling or upgrading my gadgets.
2. How do you usually save money?
I usually create a monthly budget to track my income and expenses. After receiving my salary, I transfer a fixed percentage into my savings account right away. I also try to avoid impulse purchases by waiting a few days before buying anything non-essential. This simple habit helps me budget wisely and stick to my financial goals.
3. Do you think it’s easy to save money nowadays?
Not really. With the cost of living increasing, it’s becoming harder to save money. Things like rent, groceries, and transportation take up a big portion of people’s income. However, I think it’s still possible if you plan ahead and cut down on unnecessary expenses like eating out too often or buying trendy items you don’t really need.
4. Do you use cash or digital payments more often?
I mostly use digital payments because they’re fast and convenient. With apps like mobile banking or e-wallets, I can pay bills, order food, or even split payments with friends instantly. Plus, I can check all my transactions easily, which helps me control my spending better than using cash.
5. Have your spending habits changed compared to the past?
Yes, definitely. When I was younger, I tended to splurge on things like clothes or gadgets without thinking much. But as I got older, I became more financially responsible. Now, I think carefully before spending and prioritize saving for long-term goals, such as traveling or investing in self-development.
