EFE learning modules / Financial Literacy & Budgeting

scenario 1 sarah a financial consultant helps her

Scenario Context

"Sarah, a financial consultant, helps her friend Mark organize his personal finances and create a project budget for his new home office setup."

Speakers

Sarah

A knowledgeable and patient financial consultant who enjoys teaching others how to manage money.

Mark

A freelance graphic designer who finds banking terminology confusing and struggles with monthly savings.

The Dialogue

Tap highlighted words to view vocabulary cards below.

Mark

Sarah, I've been looking at my bank account, and I'm really stressed about my spending.

Sarah

Don't worry, Mark. The first step to financial literacy is acknowledging the problem. Have you ever made a ?

Mark

Not really. I just spend until the money is gone. What exactly is a ?

Sarah

A is a plan that tracks your and your over a specific period.

Mark

That sounds complicated. Where do I even start?

Sarah

Start by listing your total monthly from your freelance work.

Mark

Okay, my varies every month, but I can estimate an average.

Sarah

Great. Now, let's look at your . These are things like rent and internet.

Mark

I pay the same amount for rent every month, so that's easy to track.

Sarah

Next, we need to identify your , like groceries and entertainment.

Mark

I think I spend way too much on eating out. That must be a variable expense.

Sarah

Exactly. If you reduce those, you can increase your personal .

Mark

I want to save for a new computer for my office project. How much should I save?

Sarah

It depends on the project . Have you researched the costs of the equipment?

Mark

Yes, it will cost about two thousand dollars in total.

Sarah

You should open a separate account to keep that money separate from your daily spending.

Mark

Is there a specific type of account I should look for at the bank?

Sarah

Look for one with a high rate so your money grows over time.

Mark

What does mean in this context?

Sarah

is the money the bank pays you for keeping your money in their account.

Mark

That sounds like free money! Are there any catches?

Sarah

Just watch out for a fee if you move the money too often.

Mark

I also have some credit card . Should I pay that off first?

Sarah

Yes, usually has a higher rate than what you earn in , so it's a priority.

Mark

I feel like I'm always one emergency away from being broke.

Sarah

That's why you need an . It’s a safety net for unexpected costs.

Mark

How much should be in an ?

Sarah

Ideally, three to six months of your basic living .

Mark

That will take a long time to build up.

Sarah

Consistency is key. Even fifty dollars a month makes a difference eventually.

Mark

Should I use an app to track my cash flow?

Sarah

Yes, many apps connect to your bank account and categorize your spending automatically.

Mark

I'll download one today. I want to be more responsible with my money.

Sarah

That's the spirit! Let's review your bank statement together to find more areas to save.

Mark

Thank you, Sarah. I feel much more confident about my finances now.

Scene Vocabulary

Practice vocabulary words & meanings.

10 Terms

Budget

/ባጀት/

በጀት

An estimate of income and expenditure for a set period of time.

ለተወሰነ ጊዜ የሚሆን የገቢና የወጪ ግምት።

Income

/ኢንካም/

ገቢ

Money received, especially on a regular basis, for work or through investments.

በተለይም በመደበኛነት ለሥራ ወይም በኢንቨስትመንት የሚገኝ ገንዘብ።

Expenses

/ኤክስፔንስስ/

ወጪዎች

The cost required for something; the money spent on something.

ለአንድ ነገር የሚያስፈልገው ዋጋ፤ ለአንድ ነገር የሚወጣ ገንዘብ።

Interest

/ኢንተረስት/

ወለድ

Money paid regularly at a particular rate for the use of money lent, or for delaying the repayment of a debt.

ለተበደረ ገንዘብ አጠቃቀም ወይም የዕዳ ክፍያን ለማዘግየት በተወሰነ መጠን በመደበኛነት የሚከፈል ገንዘብ።

Debt

/ዴት/

ዕዳ

Something, typically money, that is owed or due.

የሚፈለግ ወይም የሚከፈል ነገር፣ በተለይም ገንዘብ።

Transaction

/ትራንዛክሽን/

ግብይት

An instance of buying or selling something; a business deal.

አንድን ነገር የመግዛት ወይም የመሸጥ ሂደት፤ የንግድ ስምምነት።

Savings

/ሴቪንግስ/

ቁጠባ

The money that a person keeps in an account, especially at a bank.

አንድ ሰው በባንክ ሂሳብ ውስጥ የሚያስቀምጠው ገንዘብ።

Emergency Fund

/ኢመርጀንሲ ፈንድ/

የአደጋ ጊዜ ፈንድ

An account used to set aside funds to be used in an emergency.

ለአደጋ ጊዜ እንዲውል ገንዘብ ተለይቶ የሚቀመጥበት ሂሳብ።

Fixed costs

/ፊክስድ ኮስትስ/

ቋሚ ወጪዎች

Business costs, such as rent, that are constant whatever the quantity of goods or services produced.

እንደ ኪራይ ያሉ፣ የምርት ወይም የአገልግሎት መጠን ምንም ይሁን ምን የማይለወጡ ወጪዎች።

Variable expenses

/ቫሪያብል ኤክስፔንስስ/

ተለዋዋጭ ወጪዎች

Expenses that can change depending on your use of products or services.

እንደ ምርቶች ወይም አገልግሎቶች አጠቃቀም ሊለወጡ የሚችሉ ወጪዎች።