EFE learning modules / Financial Literacy & Budgeting

scenario 2 sarah a financial advisor helps her fr

Scenario Context

"Sarah, a financial advisor, helps her friend Mark organize his monthly finances and explains banking terminology for his new project."

Speakers
S

Sarah

A knowledgeable financial advisor who is patient and good at explaining complex concepts.

M

Mark

A freelance designer who is struggling to track his expenses and wants to start a savings plan.

The Dialogue

Tap highlighted words to view vocabulary cards below.

Mark
Hi Sarah, thanks for meeting me. I really need help with my money management.
Sarah
No problem, Mark! What seems to be the biggest challenge for you right now?
Mark
I feel like my money disappears by the end of the month, and I don't know where it goes.
Sarah
That is a common issue. Have you ever tried creating a formal ?
Mark
Not really. I just check my bank balance once a week.
Sarah
Well, the first step is to track your monthly versus your expenses.
Mark
What counts as an exactly?
Sarah
Anything you spend money on, like rent, groceries, and even that daily coffee.
Mark
Oh, I see. My rent is fixed, but my food costs change every month.
Sarah
Right. We call rent a 'fixed ' and groceries a 'variable '.
Mark
That makes sense. What should I do after I list them all?
Sarah
You need to see if you have any disposable left for .
Mark
I want to save for a new laptop for my design work. Is that an ?
Sarah
Yes, if it helps you earn more money, it is a great in your business.
Mark
I heard about high- accounts. Are they better than regular ones?
Sarah
Absolutely. They offer a higher rate, which helps your money grow faster.
Mark
How does the actually work?
Sarah
The bank pays you a percentage of your balance for keeping your money with them.
Mark
Is that what they call ?
Sarah
Exactly! means you earn on your over time.
Mark
That sounds powerful. What about ? I hear about it on the news.
Sarah
is when the prices of goods rise, meaning your money buys less than before.
Mark
So, if I just keep cash under my mattress, it loses value because of ?
Sarah
Yes, precisely. That's why putting it in an account or an is better.
Mark
What is the difference between an and a ?
Sarah
An puts money in your pocket, while a takes money out.
Mark
So my car is a because of the fuel and repairs?
Sarah
Generally, yes, unless you use it specifically to generate .
Mark
I should also start an emergency fund, shouldn't I?
Sarah
Yes! An emergency fund covers unexpected costs like medical bills or sudden repairs.
Mark
How much should I keep in that fund?
Sarah
Most experts suggest three to six months' worth of living expenses.
Mark
That sounds like a lot, but I'll start small.
Sarah
Starting small is the key. Consistency is more important than the amount at first.
Mark
I'll download a budgeting app tonight to start tracking.
Sarah
Great idea. Let's review your progress in two weeks.

Scene Vocabulary

Practice vocabulary words & meanings.

Budget

/ባጀት/

በጀት

A plan for how to spend and save money.

ገንዘብን እንዴት ማውጣት እና መቆጠብ እንደሚቻል የሚገልጽ ዕቅድ።

Expense

/ኤክስፔንስ/

ወጪ

The money spent on something.

ለአንድ ነገር የሚወጣ ገንዘብ።

Income

/ኢንካም/

ገቢ

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

በመደበኛነት ከሥራ ወይም ከኢንቨስትመንት የሚገኝ ገንዘብ።

Investment

/ኢንቨስትመንት/

ኢንቨስትመንት

The action or process of investing money for profit.

ትርፍ ለማግኘት ገንዘብን የማፍሰስ ሂደት።

Interest

/ኢንተረስት/

ወለድ

Money paid regularly at a particular rate for the use of money lent.

ለተበደረ ገንዘብ አጠቃቀም በተወሰነ መጠን በመደበኛነት የሚከፈል ገንዘብ።

Inflation

/ኢንፍሌሽን/

የዋጋ ግሽበት

A general increase in prices and fall in the purchasing value of money.

አጠቃላይ የዋጋ መጨመር እና የገንዘብ የመግዛት አቅም መቀነስ።

Asset

/አሴት/

ሀብት/ንብረት

A useful or valuable thing, person, or quality that has value.

ዋጋ ያለው ጠቃሚ ነገር ወይም ንብረት።

Liability

/ላይብሊቲ/

ዕዳ/ግዴታ

The state of being responsible for something, especially by law; a financial debt.

ለአንድ ነገር ተጠያቂ የመሆን ሁኔታ ወይም የገንዘብ ዕዳ።

Compound Interest

/ኮምፓውንድ ኢንተረስት/

ተደራራቢ ወለድ

Interest calculated on the principal and also on the accumulated interest.

በዋናው ገንዘብ እና በተጠራቀመው ወለድ ላይ የሚሰላ ወለድ።

Savings

/ሴቪንግስ/

ቁጠባ

The money one has saved, especially through a bank or official scheme.

አንድ ሰው በተለይም በባንክ በኩል የቆጠበው ገንዘብ።