EBE 1 ADINA OANA NICOLAE

UNIT 3 MONEY AND BUDGETING

Contents: Page

3.1. Speaking skills 2

3.2. Boost your vocabulary 2
3.3. Reading skills 6
3.4. Grammar practice 8
3.5. Spelling, pronunciation and listening skills 12
3.6. Writing skills 12
3.7. Food for thought 14
3.8. Summary 14
3.9. Key to exercises 15
3.10. Bibliography 15

Objectives:
After you have completed the study of this unit, you should be able to:
• use adequate and wide-ranging vocabulary related to money in a variety of spoken
and written communicative exchanges;
• understand and produce various money-related spoken or written discourse;
• discuss, organize and fill out a personal budget;
• adequately read and use numerals and uncountable nouns.

Average unit completion time: 2 hours

Keywords: money, budget, rich/poor, numerals, uncountable nouns.

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3.1. Speaking skills

• How important is money in general and to you?
• Why is it useful to create a family budget?
• Which important steps are there in drawing up a family budget?
• Do you have any financial goals?

3.2. Boost your vocabulary

Money comes in all sorts of shapes and forms: coins, banknotes, cheque books, etc. In today’s
world we generally use different official currencies of different countries. Dollar, pound, rupee, yen,
ruble, etc. are all examples of currency. Cash is any kind of money in the form of bills (paper money)
or coins. It is the easiest way to pay someone if you are physically going out to buy something. If you
need cash, you can go to an ATM and withdraw some. There is generally a daily cash withdrawal
limit from ATMs.
e.g. Your total is $14.99. Will you be paying with cash or credit card?
You can earn (=receive money as payment for work that you do) or borrow (=to take or obtain
with the promise to return the same or an equivalent) money. Once you have it, you can choose to
spend it, invest it or save (=put aside) it for rainy days.
Describing a rich or a poor person:
Rich: stinking rich, loaded, moneyed, well-to-do, filthy rich, rolling in it, wealthy, prosperous,
affluent, well off, wealthy.
Poor: dirt poor, hard up, needy, broke, penniless, moneyless, poverty-stricken, deprived,
unfortunate, underprivileged, modest.

Exercise 1. Use one of the words above to refer to the rich/ the poor:
a. It’s good to see you looking so ...
b. His family is not very …. In fact, they are quite …
c. Their family is …, so they can afford to go on such extravagant vacations every year.
d. No one from these educationally … groups has a chance of getting to university.
e. It’s a charity that provides help and comfort for … children.

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budget =n. the amount of money available to spend on something; vb. allow or provide a particular
amount of money in a budget.
e.g. I always go over my budget when I shop for clothes.
A budget is the money that is available to a person or an organization and a plan of how it will
be spent over a period of time. Managers usually plan/draw up a budget according to needs and, if
necessary, cut items from a budget. Any organization is run on a budget. The kind of budget is
indicated by a noun or adjective placed in front: e.g. a monthly/an annual/a family budget;
advertising/ education/ defence budget.
e.g. We decorated the house on a tight budget (= without much money to spend).
e.g. The work was finished on time and within budget (= did not cost more money than was
planned).
e.g. They went over budget (= spent too much money).
income = the amount of money a person earns per month or per year
e.g. He has a nice home and an adequate income.
expenses = the cost required for something
e.g. Travel expenses are the ordinary and necessary expenses of traveling away from home for your
business, profession, or job.
savings = the money one has saved, especially in a bank
e.g. I’m going to put some of my savings into a down payment on a car.
debt = You are said to be in debt when you owe money to someone; both individuals and companies
can be in debt.
e.g. If our company does not stop going over budget every year, then our debt will force us to close
down the business.
payment = an amount of money paid:
e.g. When is the first payment due?
down payment = an amount of money that you pay at the time that you buy something but is only a
part of the total cost of that thing (you usually pay the rest of the cost over a period of time)
e.g. I made/put a down payment on a new smart TV.

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retirement = the act of leaving your job and stopping working, usually because you are old
e.g. Many teachers over the age of 50 are taking early retirement.
household = a group of people, often a family, who live together
e.g. By the 1960s, most households had a TV.
table = an arrangement of facts and numbers in rows and columns
e.g. All the figures are arranged in this table.
rent = a fixed amount of money that you pay regularly for the use of a room, house, car, television,
etc. that someone else owns
e.g. Rents here are ridiculously high/low in this area.
mortgage = an agreement that allows you to borrow money from a bank or similar organization,
especially in order to buy a house, or the amount of money itself:
e.g. They took out a £40o,000 mortgage (= they borrowed £40o,000) to buy the house.
discretionary = available to someone by choice, without having to get permission or authority
e.g. Once your kids have discretionary money of their own, they can pay for their own DVDs.
loan = a sum of money which is borrowed, often from a bank, and has to be paid back, usually
together with an additional amount of money that you have to pay as a charge for borrowing.
e.g. She's trying to get a $100 000 loan to start her own business.
insurance = an agreement in which you pay a company money and they pay your costs if you have
an accident, injury, etc:
e.g. life/health/car/travel insurance
tax = an amount of) money paid to the government, which is based on your income or of the cost of
goods or services you have bought:
e.g. They're putting up the tax on cigarettes.
bill = a request for payment of money owed, or the piece of paper on which it is written:
e.g. They sent us a bill for the work they had done.
tuition = the money paid for being taught, especially in a college or university
e.g. Few can afford the tuition of $12,000 a semester.
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to meet goals = achieve objectives

to cut back costs = reduce the amount of costs
to track costs = to record costs over a certain period

Exercise 2. Tick the correct choice:

1. Money that an organization such as a bank lends and somebody borrows is called a _____.
A. Loan B. Expenses C. Withdrawal
2. _____ is how much money you get, either from a job, chore, or as a gift.
A. Withdrawal B. Expenses C. Income
3. When you put money into a bank account, that is called a _____.
A. Deposit B. Withdrawal C. Budget
4. _____ are the money that you spend, either on things that you need or on things that you
want.
A. Financial goals B. Expenses C. Deposit
5. When you take money away from the money that you have and spend it, that is called a
______.
A. Withdrawal B. Ending balance C. Deposit
6. A _____ is a record that you keep of your income and expenses.
A. Beginning balance B. Expense C. Budget
7. A _____ is when you decide how much money you want to have to use for a specific reason.
A. Budget B. Deposit C. Financial goal
8. When you keep money, and not spend it, so that it adds up to be more and more money, it is
called ______.
A. Savings B. Income C. Beginning balance
9. The _____ is the total amount of money that you have to begin with.
A. Ending balance B. Beginning balance C. Income
10. With a budget, you can plan to have more money left over by spending less money.
A. True B. False
11. The _____ is the total amount of money you have after you had added your income or taken
away your expenses.
A. Withdrawal B. Beginning balance C. Ending balance

(adapted from https://www.proprofs.com/quiz-school/story.php?title=words-to-knowbudget-

vocabulary)

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3.3. Reading Skills

You probably learned the hard way that a family can’t live as cheaply as one person, so be
careful when you plan your budget. Children’s financial needs are different and often more serious
than an adult’s, due to the emphasis on health care and education. A budget for three, for example,
should focus on controlling discretionary spending without eliminating the occasional night out or
impulse buy.
Whether you use a simple spreadsheet or basic money management software, your budget
document will focus on your income and expenses. If you have excess income, you are lucky: your
savings section will help you work toward retirement, college fund, home down payment and vacation
goals. It is a good idea to divide your expenses into necessary and discretionary categories to let
you easily find expenses you can cut when cash is tight. Include all potential income during the year,
including your pay, gifts from mom and dad and any extra cash you might get. Include a total row
that shows your income or deficit each month. At the end of your rows, you can include columns for
each income and expense item, monthly averages and year-end projections.
Most household budgets include basic living expenses such as rent or mortgage, utilities,
groceries, television/Internet, dining, entertainment and repairs. Make sure you do not leave out
expenses such as car payments, student loans, credit card debt and insurance. Place the amount of
fixed expenses, such as rent and car payments, into your budget for all 12 months. Use last year’s
bills to estimate your monthly variable expenses, such as groceries and utilities, and enter them into
each month’s field in your document.
Some family budget items are unique to each person and tracking costs this way will help you
see who can cut back if necessary. Break out expenses by adult for items such as clothing, hair and
nails, golf, tennis or other regular sports activity, gym membership and hobbies. Your child’s
expenses will include toys, clothing, daycare or school tuition and health care and items for
transporting an infant or toddler. Breaking out personal expenses will help you determine if someone
needs to cut back, or if adults need to start sharing items to help meet your budgeting goals.
Determine your savings needs and subtract them from your income each month to help you
better focus your budget. If you want, include savings in the expense portion of your budget to
determine if you can meet your goals with your current income. Include an emergency fund,
retirement contributions, credit card and student loan debt reduction, home down payment, college
fund and vacation in your savings plans.
You need to be careful with your money — because the decisions you make today could
haunt you for years. You still have a lot to learn about personal finance!
(adapted from https://budgeting.thenest.com/example-budgeting-family-three-28590.html)

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Exercise 3. Answer the following questions:

a. What can you use to draw up a family budget document?
b. Which two important categories are there in a budget?
c. Why are you lucky if you have excess income?
d. Which two important subcategories are there in the expenses category?
e. Which are a child’s typical expenses?

Post-reading. Focus on real English in context

Dialogue 1
Jerry: Can you loan me some money?
Cathy : I'm sorry. I've already gone through my paycheck for the week.
Jerry: You've gone through all you money so quickly? I thought you were well-off.
Cathy: Not me! You know money always burns a hole in my pocket.

Dialogue 2
Cashier: How can I help you, Miss?
Jackie: Could you break a 20 for me?
Cashier: Sure. How do you want it?
Jackie: Could I have two 5's and the rest in ones?
Cashier: Well, I have some 5's, but I don't have enough 1's. Are quarters fine with you?
Jackie: Oh, that's even better! In that case, I won't have to worry about the small change for the
laundry.
Cashier: Here you go!
Jackie: Thanks a million

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(www.focusenglish.com )

Exercise 4. Answer the following questions about the dialogues above:

a. What does Jerry need?
b. What does Jackie need?

3.4. Grammar practice

Numerals
A. Cardinal Numerals
4= four
40= forty
5= five
50= fifty
0 can be read zero (e.g. -10ºC=minus ten degrees/ten degrees below zero); oh (in telephone
numbers); nought in maths (0.5 = nought point five); oh in maths (4.02 = four point oh two).
468 = four hundred and sixty-eight
5,093 = five thousand and ninety-three
7270 = seven thousand two hundred and twenty
340,000 = three hundred and forty thousand
6,000,000,000 = six billion
Nota bene! There is no plural after hundred, thousand, million and billion when they are part of a
number. They receive the plural ONLY when they are followed by of: e.g. thousands of ideas.
In American English, the conjunction "and" is generally not used before tens or ones: one hundred
twenty-three (123); four hundred seven (407); three thousand five hundred thirty-eight (3,538);
B. Ordinal numbers
(the) first, second, third, fourth, fifth, sixth, seventh, etc.
(the) twenty-first, twenty-second, twenty-third, twenty-fourth, twenty-fifth, etc.

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C. Dates
18 June/ 18th June = the eighteenth of June/ June the eighteenth
1993 = nineteen ninety-three
2009=two thousand and nine
1st Jan 1999 = the first of January 1999
4th March 2008 = the fourth of March 2003
Nota bene! We use on before days: on Friday, on May 21st, on that day
D. Fractions and decimals
¼ = a quarter
1 ¼ = one and a quarter
½ = a half
¾ = three quarters
1.28= one point two eight
E. Percentages
85%= eighty-five per cent
F. Arithmetic
Addition: e.g. 4+4=8 (four plus/and four equals/is eight)
Subtraction: e.g. 10-3=7 (ten minus three equals seven)
Multiplication: e.g. 3X2=6 (three times/multiplied by two equals/is six)
Division: e.g. 12:4=3 (twelve divided by four equals/is three)
Nota bene!
The word "digit" refers to any of Arabic figures from 0 to 9. Examples: the digit 4; the digit 7; a three-
digit number; a group of three digits; use digits to write these numbers.

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The word "figure" refers to a numerical symbol for a number and can also refer to the
numerical value of a number. Examples: the figure 4; Arabic figures; a six-figure number; a figure of
3.5 million; round figures; write these numbers in figures and in words. The word "figures" can also
mean "arithmetic": e.g. He is good at figures.

Exercise 5. How do you say these numbers and dates in English?

a. 2 1/3
b. 22,255
c. in 1967
d. 2,346
e. 0744 679 046 (phone number)
f. 0.45
g. 39%
h. 23rd Sept 2001
i. 6, 570,000
j. 44:11=4

Exercise 6. Answer these questions?

a. When is the national day of Romania celebrated?
b. How many grams are there in a kilogram?
c. What temperature does water boil at?
d. How high is Mount Everest?
e. What is a newborn’s normal weight at birth?

Uncountable nouns
Unlike countable nouns, uncountable nouns are substances, concepts etc that we cannot
divide into separate elements. We cannot "count" them. For example, we cannot count "milk". We
can count "bottles of milk" or "litres of milk", but we cannot count "milk" itself. Here are some more
uncountable nouns:
• music, art, love, happiness
• advice, information, news, furniture, luggage, knowledge, equipment, money, progress

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• rice, sugar, butter, water

• electricity, gas, power
We usually treat uncountable nouns as singular. We use a singular verb:
e.g. This news is very important.
e.g. Your luggage looks heavy.
Nota bene!
We do not usually use the indefinite article a/an with uncountable nouns. We cannot say "an
information" or "a music". But we can say:
a piece of news
a bottle of water
a grain of rice
We can use some and any with uncountable nouns:
I've got some money.
Have you got any rice?
We can use a little/little (not few/a few) and much (not many) with uncountable nouns:
I've got a little money.
I haven't got much rice.

Exercise 7. Insert a/ an (if the noun is countable) or some/any (if uncountable):

a. a. I bought … paper this morning. (=a newspaper)
b. I need some paper. (=material)
c. There is … money on the kitchen table.
d. I could offer you … valuable information.
e. …laboratory equipment has just been ordered.
f. I’ve got … great news for you.
g. We don’t have … furniture left.

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Exercise 8. Insert much /many:

a. How … time is left?
b. There are … people waiting outside.
c. I’ve got … sand in my sandals after that walk on the beach.
d. Did you learn … information for the exam?
e. I haven’t got … money, this is too expensive for me.
f. There are too … dates I have to remember!

3.5. Spelling, pronunciation and listening skills

Mind the spelling of the following numbers:
e.g. forty-two (42), one thousand six hundred seventy-ninth (1,679th); nine thousand eight hundred
fiftieth (9,850th); 1/1000 – one-thousandth; 3 2/5 – three and two-fifths;
Note the differences in spelling: three-hundredths (3/100) – three hundredth (300th).

3.6. Writing skills

Exercise 9. What does the following table represent? Write a similar one for your situation, adding
realistic amounts.
How do you know if you have excess income?

Monthly Income Monthly Outgoings

Net monthly pay Household expenses:
-wages -Mortgage/rent:
-salary -home repairs/improvements
-bonus -Home help:
-pension -Household Items
-dole money -State and local income tax
Income from savings (interest) and -social security and medicare tax
investments -employer retirement plan contribution
Other income:
-child support Regular bills: utilities
-alimony -Gas/electricity/water
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-royalties -Phone/cable TV/internet

Insurance
-Life and protection
-Motor and home
-Medical

Transport
-Petrol
-Commuting costs
-Car-related costs: car insurance, car
maintenance, parking expenses
-Car loan/lease payments

Other bills:
-credit cards
-loan repayments
-maintenance
-optical/dental costs

Personal care:
-Toiletries
-Clothing
-Laundry/dry-cleaning

Children
-Daycare
-Tuition
-school supplies, textbooks
-clothing
-treats
-pocket money
-activities/lessons

Entertainment/ recreation
-eating out
-cinema:
-holidays:
-sports:

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-gifts/ donations
-hobbies

Prescriptions and medications

Pet care: pet food, vet, grooming

Savings
Total monthly income Total monthly expenses

3.7. Food for thought

• About how much did you spend on presents last year?
• About how much do you usually spend each day?
• Are you a price conscious shopper?
• Are you good at saving money?
• Do you compare prices at different stores when you shop?
• Do you haggle when you shop?
• Do you have a credit card?
• Do your parents give you an allowance?
• What things do you pay cash for?
• What things do you pay by credit card?
• Have you ever borrowed money from someone? Who? What did you need the money for?
• Who wouldn't you lend money to?
• How do you think money helps make us happy?
• Some people say that "money makes the world go round." Do you agree?

3.8. Summary
In this unit, you have practised:
✓ How to communicate about money orally or in writing;
✓ How to create a family budget;
✓ How to discuss about budgeting in a professional setting;
✓ The use of numerals and uncountable nouns.

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3.9. Key to exercises

1.Suggested answers: a. prosperous; b. well off; modest; c. stinking rich d. underprivileged; e. needy.
2. 1 A; 2. C; 3. A; 4. B; 5.A; 6.C; 7.C; 8. A; 9. B; 10. A; 11.C.
3. a. You can use a simple spreadsheet or basic money management software b. In a budget there
are two main categories: income and expenses. c. You can save money for retirement, college fund,
home down payment and vacation goals. d. In the expenses category there are two important
subcategories: necessary and discretionary categories. e. A child’s typical expenses include toys,
clothing, daycare or school tuition, health care and items for transporting.
4.a. Jerry needs to borrow money; b. Jackie needs to break a banknote smaller banknotes.
5. a. two and a third; b. twenty-two thousand two hundred and fifty-five; c. in nineteen sixty-seven; d.
two thousand three hundred and forty-six; e. oh seven double four six seven nine oh four six; f. oh
point four five; g. thirty-nine per cent; h. the twenty-third of September two thousand and one; i. six
million five hundred and seventy thousand; j. forty-four divided by eleven is/equals four.
6. a. The national day of Romania is celebrated on the first of December; b. In a kilogram there are
one thousand grams; c. Water boils at one hundred degrees Celsius; d. Mount Everest is eight
thousand eight hundred and forty-eight metres high. e. A newborn’s normal weight at birth is between
two thousand and five hundred grams and four thousand and one hundred grams.
7. a. a; b. some; c. some; d. some; e. some; f. some; g. any
8.a. much; b. many; c. much; d. much; e. much f. many
9. My/A Household Budget; Total Monthly Surplus or Shortage (Income Minus Expenses) = excess
income or negative income

3.10. Bibliography
Enache, Maria (coord.) Management Issues. Bucureşti: Editura Universitară, 2007.
Hoffmann, Hans G and Hoffmann Marion. Engleza tematică. Bucureşti: Niculescu, 2004.
Turai, Ioana Maria. Gramatica limbii engleze. Bucureşti: Corint, 2008.

Web resources
www.businessdictionary.com
https://dictionary.cambridge.org/
www.focusenglish.com
https://budgeting.thenest.com/example-budgeting-family-three-28590.html
https://www.proprofs.com/quiz-school/story.php?title=words-to-knowbudget-vocabulary

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