Money Management – B1 English Listening Exercise

1 Answer: (B) Listeners who struggle to track their monthly spending.

• Explanation: David says, “If you always wonder where your money goes at the end of the month, this method is perfectly designed for you.” Wondering where your money goes means you struggle to track your spending. Option (A) is a trap; the rule applies to any salary, not just high ones. Option (C) is a trap; borrowing money is not the purpose of the podcast.

2 Answer: (A) Crucial living expenses that you cannot avoid paying.

• Explanation: The 50% is for ‘needs’, which David describes as “essential things you must pay for to survive” (crucial living expenses you cannot avoid). Option (B) is a trap; this describes the 30% category (‘wants’). Option (C) is a trap; this describes the 20% category (savings).

3 Answer: (B) Reduce their current loans or build up their savings.

• Explanation: The host states the final 20% should be put “into a secure savings account or use it to pay off any debts” (reduce loans or build up savings). Option (A) is a trap; this belongs to the 30% category. Option (C) is a noble act, but it is not mentioned in this budgeting rule.

David: Welcome back to ‘Smart Money,’ the podcast that helps you take control of your wallet. I’m your host, David. Today, we are talking about a very popular budgeting strategy: the 50/30/20 rule. If you always wonder where your money goes at the end of the month, this method is perfectly designed for you.

It’s actually very simple. Whenever you receive your salary, you divide it into three specific categories. First, fifty percent goes to your ‘needs’. These are essential things you must pay for to survive, like your apartment rent, electricity bills, and basic groceries.

Next, thirty percent goes to your ‘wants’. This is the fun money. You can use it for things you enjoy, such as eating at restaurants, buying new clothes, or going to the cinema with friends.

Finally, the last twenty percent is for your financial future. You should put this money directly into a secure savings account or use it to pay off any debts you might have. By following this simple formula, you can enjoy your life today without worrying about tomorrow.

1 Answer: (B) Relying on disorganized paper records to track spending.

• Explanation: The announcer asks if you are “tired of keeping a messy notebook with all your daily expenses” (relying on disorganized paper records). Option (A) is a trap; the app records your “monthly rent,” but the ad doesn’t say it helps you remember to pay it. Option (C) is a trap; “morning coffee” is just an example of a recorded transaction, not the main problem being solved.

2 Answer: (C) By linking straight to the user’s personal financial institution.

• Explanation: The ad states that the app “connects directly to your bank account” (linking straight to a personal financial institution). Option (A) is a trap; the speaker explicitly says, “there is no need to type in your purchases manually.” Option (B) is a plausible feature for other apps, but it is never mentioned here Answer: (A) Whenever their remaining funds drop to a dangerously low level.

• Explanation: The app sends a notification “if you are close to spending all your cash” (when funds drop to a dangerously low level). Option (B) is a trap; the speaker warns, “Don’t wait until your wallet is completely empty,” meaning the alert happens before the money is gone. Option (C) is not mentioned in the audio.

Announcer: Do you always feel stressed when the end of the month arrives? Are you tired of keeping a messy notebook with all your daily expenses? Say hello to ‘MoneyMaster’, the ultimate personal finance app that does the hard work for you!

First, there is no need to type in your purchases manually. The app connects directly to your bank account and automatically records every single transaction, from a morning coffee to your monthly rent. Second, it creates beautiful visual charts, making it incredibly easy to see which category eats up most of your salary.

But the best feature is the smart warning system. MoneyMaster will send a fast notification to your screen if you are close to spending all your cash. Don’t wait until your wallet is completely empty. Download MoneyMaster today and take back control of your financial future!

1 Answer: (B) The recent increase in everyday living expenses.

• Explanation: The reporter states there is a “steady rise in the general cost of living” (recent increase in everyday living expenses). Option (A) is a trap; “commutes” are mentioned, but they are becoming more expensive, not dropping in price. Option (C) is never mentioned in the audio.

2 Answer: (C) Fresh food and fuel for vehicles.

• Explanation: The script mentions that “everyday groceries, particularly fresh vegetables and meat” (fresh food) and “petrol” (fuel for vehicles) have increased in price. Option (A) is a trap; these are examples of “weekend entertainment” which people are cutting back on, not the things that increased in price. Option (B) is a trap; housing and electricity are common living costs but are not mentioned in this specific report.

3 Answer: (B) They are reducing their spending on non-essential, fun activities.

• Explanation: The reporter says families are “cutting back on luxury items and weekend entertainment” (reducing spending on non-essential, fun activities). Option (A) is a plausible real-world reaction, but it is not mentioned. Option (C) is a trap; petrol costs are higher, but the report does not say people are selling their cars.

Reporter: Good evening. This is your Daily Financial Report. Over the past four weeks, citizens have noticed a steady rise in the general cost of living.

Recent data shows that the prices for everyday groceries, particularly fresh vegetables and meat, have increased by nearly five percent. Furthermore, the cost of petrol at the pump has also gone up, making daily commutes much more expensive for drivers.

Because of these extra costs, many households are being forced to change their spending habits. Economic experts report that families are now cutting back on luxury items and weekend entertainment to ensure they can pay for their basic needs. Financial advisors strongly recommend that everyone reviews their monthly budget immediately to prepare for these higher prices.

1 Answer: (B) She prepares her own dishes before going to class.

• Explanation: The vlogger says, “I always pack my own meals from home” (which means preparing her own dishes before going to class). Option (A) is a trap; she does this for herself to save money, not for her friends. Option (C) is a trap; she mentions “sandwiches at the campus cafeteria”, but she explicitly says “Instead of buying” them.

2 Answer: (A) By showing a specific school document to get a discount.

• Explanation: She advises using your “student ID” (a specific school document) to get “cheaper tickets on public transport” (a discount). Option (B) is a logical real-world way to save money, but she specifically mentions taking the bus, not walking. Option (C) is a trap; she says she uses her ID “every single day”, not just on weekends.

3 Answer: (C) Acquiring pre-owned textbooks rather than buying them new.

• Explanation: The speaker recommends “purchasing second-hand copies” (acquiring pre-owned textbooks) because brand new ones are too expensive. Option (A) is a trap; she mentions the library, but advises against getting “brand new” materials. Option (B) is a trap; the words “older students” and “a fortune” are in the script, but she is buying from older students to avoid spending a fortune, not selling things to them to get rich.

Vlogger: Hey guys, welcome back to my channel! As a university student, I know exactly how hard it is to make your money last until the end of the month. So today, I’m sharing my top three tricks for living on a tight budget.

My first tip is about food. Instead of buying expensive sandwiches at the campus cafeteria, I always pack my own meals from home. It takes a little extra time in the morning, but it saves me a massive amount of cash!

Second, never forget the power of your student ID! I use mine every single day to get cheaper tickets on public transport. Why pay the full price for the bus when you can legally pay half?

Finally, let’s talk about study materials. Brand new textbooks cost a fortune. I highly recommend purchasing second-hand copies from older students or looking for them in the local library. You get the exact same information for a fraction of the price. Try these out and let me know how much you save this month!

1 Answer: (B) To advise people to hide a temporary security number from others.

• Explanation: The automated voice warns callers about the “One-Time Password” and says, “You must keep this security code completely secret” (hide a temporary security number). Option (A) is a trap; the message is about an OTP, not changing a permanent online password. Option (C) is a trap; the message warns that thieves might steal your funds, not that the bank has already lost them.

2 Answer: (A) Official bank employees will never request this information from you.

• Explanation: The recording states clearly, “our bank staff will never call or text you to ask for your One-Time Password” (official employees will never request it). Option (B) is not mentioned in the audio. Option (C) is a trap; checking your “account balance” is an option in the menu, but it doesn’t require updating the OTP.

3 Answer: (B) By pushing the zero button on their telephone keypad.

• Explanation: The system says, “If you need to speak directly with a human representative (an actual staff member), please press 0 now.” Option (A) is a trap; pressing 1 is to report a “stolen or missing credit card,” not to speak to a person generally. Option (C) is a trap; the system does not ask the user to enter an account number yet.

Automated Voice: Welcome to the National City Bank customer service line. Please listen carefully to the following security message before choosing an option.

Recently, there has been a rise in cybercrime. We want to remind you that our bank staff will never call or text you to ask for your One-Time Password, also known as an OTP. You must keep this security code completely secret. If you share this number with anyone, thieves can easily access your account and steal your funds.

Now, please choose from the following menu. To report a stolen or missing credit card, press 1. To check your current account balance, press 2. If you need to speak directly with a human representative, please press 0 now.