Spending vs. Saving

Discussion

1. Do you find it difficult to stick to a monthly budget?
2. Are you more of a saver or a spender by nature?
3. What is the most impulsive purchase you have made recently?

New Words & Expressions

• Frugal

  adjective

  /ˈfruːɡəl/

  Meaning:Economical in use or expenditure; penny-pinching.

  Being frugal allows us to save for our future home.

  Real Life Tip:

  Often seen as a virtue in American financial planning.

• Discretionary

  adjective

  /dɪˈskreʃəneri/

  Meaning:Available for use at the discretion of the owner; non-essential spending.

  We need to cut back on our discretionary income this month.

  Real Life Tip:

  Frequently used when discussing household budgeting.

• Put away

  phrasal verb

  /pʊt əˈweɪ/

  Meaning:To save money for a future purpose.

  We are trying to put away some cash every paycheck.

  Real Life Tip:

  A very common casual way to talk about saving.

• Burn a hole in one"s pocket

  idiom

  /bɜːrn ə hoʊl ɪn wʌnz ˈpɒkɪt/

  Meaning:When someone is eager to spend money as soon as they get it.

  That bonus is burning a hole in my pocket!

  Real Life Tip:

  Used to describe the temptation to spend.

• Splurge

  slang

  /splɜːrdʒ/

  Meaning:To spend money freely or extravagantly on something special.

  We decided to splurge on a nice dinner for our anniversary.

  Real Life Tip:

  Used to justify occasional luxury spending.

Conversation

• Kevin
  I feel like we need to be more frugal if we want that apartment.
• Jennifer
  I agree. It is hard when every sale seems to burn a hole in my pocket.
• Kevin
  We should limit our discretionary spending for a while.
• 

Q&A

Exercise

1. If someone is frugal, they are:

   ExtravagantCareful with moneyAlways brokeA wealthy investor

2. What does discretionary spending refer to?

   Rent and billsNon-essential purchasesDebt paymentsSavings

3. We need to ____ some money for emergencies.

   put awayput offput input up

4. It is fun to ____ on a nice vacation.

   splurgespendwasteinvest

5. hole / pocket / burn / my / a / in

   Burn a hole in my pocket.My pocket in a hole burn.A hole in my pocket burn.Burn my pocket a hole in.

6. discretionary / cut / spending / we / should

   We should cut discretionary spending.Discretionary spending we should cut.We cut discretionary should spending.Should we cut spending discretionary.

Ask Your Teacher

1. How do you define being frugal in your own life?
2. What are some common categories for discretionary spending?
3. Have you ever had money burning a hole in your pocket?

Your Time To Speak

1. How do I balance saving and living a good life?
2. Is it bad to splurge occasionally?
3. What is the best way to put away money for a goal?
4. How do I explain to friends that I am being frugal?
5. What is the biggest mistake people make with money?
6. How do I track my discretionary spending?
7. Should I save money even if I have debt?
8. What does it mean to be financially independent?
9. How can I stop impulsive buying?
10. What is a good emergency fund size?