English Vocabulary for Personal Finances – assets, equity, collateral...

Video Description

Money, money, money. Money management is a serious issue that everyone should learn about. To do this in English requires knowing some of the technical and everyday language involved, including words like collateral, debt, assets, equity, and more. In this English lesson, we look at some of the main vocabulary to help you make good choices with your money. https://www.engvid.com/english-vocabulary-for-personal-finances/ Learn more money and finance-related vocabulary with these videos: Speak Like a Native Shopper: English Vocabulary for Shopping, Sales...and SCAMS! https://youtu.be/rE7CrdKLCgQ Learn English Vocabulary: Buying a Car https://youtu.be/pLq9KzUdSbM In this lesson: 0:00 Vocabulary for Personal Finances 1:14 bankruptcy 1:57 budget 2:12 fixed income 2:47 disposable income 3:18 impulse buy 3:49 debt 4:13 loan 4:36 tax & tax return 4:59 default 5:29 assets & liabilities 6:35 investment portfolio 6:55 term deposit 7:34 capital gains & losses 8:11 retirement savings 9:27 equity 10:13 collateral 10:47 credit rating/score 11:37 line of credit 11:57 insurance – deductible, copay, premium 13:23 mortgage, interest, property tax TRANSCRIPT Hi. Welcome back to www.engvid.com. I'm Adam. In today's video, I want to help you basically take care of your money. Okay? Very, very important topic today. So, what we're going to look at are some things, some terms, and some expressions that you need to understand before you speak to a financial advisor. Okay? And that's what we're going to look at here. A financial advisor is a person who supposedly knows how you should spend your money, save your money, invest your money. Basically, how to keep yourself comfortable and safe for the long term, in the future. Okay? Because it's becoming more and more expensive to live in big cities, especially, and you need to know how far you can stretch your dollar. Stretch your dollar basically means how much value you can get out of every dollar that you earn. Okay? So, we have some terms here. Now, again, just a quick warning. All I'm doing here is giving you some vocabulary, but it's up to you to do the research and to know your personal situation very well so that you know how to basically take care of your money and take care of your future. Okay? So, the main focus here is what we want to do is we want to avoid bankruptcy. Bankruptcy, when you file for bankruptcy... File for bankruptcy means you're telling the government or you're telling the bank or you're telling the people that you owe money to that you don't have any money. Okay? Now, a lot of people use bankruptcy as a last resort, as a last option when they just can't make payments on their bills. Bankruptcy is a very bad thing to have on your financial history because companies or banks won't lend you money, they won't sell you a house, they won't sell you a car unless you pay the full amount. So, you want to try to avoid bankruptcy as much as possible. So, where does that begin? It begins by creating a budget. So, the "dg" just sounds like a "j", budget, and the "e" sounds like an "i". So, what you're doing with a budget is you're taking your fixed income, this is the amount of money that you're going to get every week or every month, and it's not going to change. For example, if you work at a company and that's the only income you have, then every month your income will be exactly the same. It is fixed. So, you take this fixed income and you have to cut it into pieces of how you're going to spend it. You're going to pay taxes, you're going to pay your insurance bill, you're going to pay your rent if you're renting, or your mortgage payments if you bought a house. You're going to pay all your bills, and then when you're finished paying all the things that you have to pay, what is left for you to spend on food or entertainment or travel is called your "disposable income". "Disposable" means you can use it. You can use it for anything, basically. It's not necessary for you to pay anybody or anything with it, right? Ideally, you will save it. Your savings come from disposable income, but it's up to you how you spend it. What you want to avoid is an impulse buy or impulse shopping. Impulse shopping is, for example, you go into a store and you didn't plan on buying anything that day, but you see something, "Oh, that's really nice." You see a watch, you see a shirt, something that you don't need, you didn't think to buy, but you saw it and suddenly you decide, "Okay, I want that." And you go and you buy it. Impulse shopping or impulse buys are the things that most people get themselves into financial trouble with, okay? A lot of your debt is going to come from impulse shopping, so avoid that. But debt is a big issue. Now, notice I don't pronounce the "b", it's not "debt", "debt", "d-e-t" sound, "debt". Your debt is part of your consideration when you're making your budget. […]