2. Reading, Task 2 - How to manage pocket money

Task 2 (10 points)
Read the text and do the task. Choose the appropriate phrase in the gap (1-10). Use each phrase only once. An example (0) has been given.

 

 

As a teenager, you may regularly face one problem – (0) money management. In today’s world, the majority of parents give pocket money or a monthly allowance to their teenage kids. So how do you as a teenager make the best use of this allowance? Let’s explore.

The first thing you must remember is that pocket money is not easy money (1) want new clothes or to watch a moviemore financially happy in lifemay need during the dayplaying football or going to the park or beachunnecessary spendingspending is better than savingsaving, budgeting, goal setting and financial disciplineevery penny countsfor the purpose of spendinghave to do a particular task or choreto save first and spend later . A lot of teenagers do not understand the importance of pocket money and only think of it as a means to get what they want. But keep in mind that pocket money is an excellent way for you to learn such things as (2) saving, budgeting, goal setting and financial disciplinefor the purpose of spendingunnecessary spendingspending is better than savingto save first and spend laterplaying football or going to the park or beachevery penny countswant new clothes or to watch a moviemore financially happy in lifemay need during the dayhave to do a particular task or chore .

Pocket money can be of two types – free money and earned money. Free money is when you receive an allowance without you having to work for it. The second type – earned money – is when you (3) for the purpose of spendingmay need during the daywant new clothes or to watch a moviehave to do a particular task or choremore financially happy in lifespending is better than savingunnecessary spendingsaving, budgeting, goal setting and financial disciplineplaying football or going to the park or beachevery penny countsto save first and spend later to earn an allowance.

Ok, you must be thinking – pocket money is meant to be spent, so why are we talking of saving? This is because the rule of financial planning is (4) playing football or going to the park or beachmore financially happy in lifeunnecessary spendingfor the purpose of spendingto save first and spend laterevery penny countssaving, budgeting, goal setting and financial disciplinewant new clothes or to watch a moviehave to do a particular task or choremay need during the dayspending is better than saving . When you receive your pocket money for the week or the month, first put aside a small amount as saving. It is important to put your savings away in a separate place and do not keep them along with the money used for expenses.

Saving is one important aspect of your pocket money. But the more important is to stop
(5) to save first and spend laterfor the purpose of spendingsaving, budgeting, goal setting and financial disciplineplaying football or going to the park or beachmore financially happy in lifeunnecessary spendinghave to do a particular task or choremay need during the dayspending is better than savingevery penny countswant new clothes or to watch a movie . You can grow money only if you save and you can save only if you spend less than you receive.

When the month begins, plan your monthly budget by deciding what you need to buy. There may be some cases when you (6) want new clothes or to watch a movieplaying football or going to the park or beachmay need during the dayspending is better than savinghave to do a particular task or choreevery penny countsto save first and spend latersaving, budgeting, goal setting and financial disciplinemore financially happy in lifeunnecessary spendingfor the purpose of spending . Include these in your budget.

Control your expenses on a daily basis. Remember that (7) spending is better than savingmay need during the dayfor the purpose of spendingto save first and spend latermore financially happy in lifesaving, budgeting, goal setting and financial disciplinehave to do a particular task or choreplaying football or going to the park or beachwant new clothes or to watch a movieevery penny countsunnecessary spending . Think of innovative ways of spending time with your friends which does not involve spending money. This can include (8) more financially happy in lifefor the purpose of spendingwant new clothes or to watch a movieunnecessary spendingsaving, budgeting, goal setting and financial disciplineplaying football or going to the park or beachspending is better than savingevery penny countsmay need during the dayto save first and spend laterhave to do a particular task or chore .

Another thing to control your expenses is to avoid carrying all the pocket money you get in your wallet. Instead keep it in a piggy bank or in an envelope. Take only what you (9) every penny countswant new clothes or to watch a movieplaying football or going to the park or beachmore financially happy in lifesaving, budgeting, goal setting and financial disciplineunnecessary spendingfor the purpose of spendinghave to do a particular task or chorespending is better than savingmay need during the dayto save first and spend later with a small amount of extra cash when you go out. This way, you will not
spend more than was planned.

Receiving pocket money or an allowance from your parents teaches you to become financially disciplined and independent. Spend your pocket money wisely, save regularly and plan your investments sensibly to become (10) every penny countswant new clothes or to watch a moviemore financially happy in lifefor the purpose of spendingspending is better than savingmay need during the daysaving, budgeting, goal setting and financial disciplineto save first and spend laterplaying football or going to the park or beachunnecessary spendinghave to do a particular task or chore .