Money and income | Professional English in Use - Finance Vocabulary Exercises

Money and income Exercises

These exercises focus on Money and income

Vocabulary List for Money and Income

1. Cash (noun)

Definition: Physical money in the form of coins or banknotes.
Example: She paid for the groceries with cash.
Explanation: Cash is a liquid form of money used for everyday transactions.

2. A Coin (noun)

Definition: A small, flat, round piece of metal used as money.
Example: The vending machine accepts coins for snacks.
Explanation: Coins are a basic unit of physical currency.

3. Currency (noun)

Definition: The system of money used in a particular country.
Example: The euro is the official currency of many European countries.
Explanation: Currency facilitates trade and serves as a medium of exchange.

4. Banknote (noun)

Definition: A paper note issued by a bank as legal tender.
Example: He handed the cashier a $20 banknote.
Explanation: Banknotes are a primary form of paper money.

5. Deposit (noun/verb)

Definition: Money placed into a bank account for safekeeping.
Example: She deposited her paycheck into her savings account.
Explanation: Deposits provide a secure way to store money and earn interest.

6. Earn (verb)

Definition: To receive money in exchange for work or services.
Example: He earns a good income working as a software engineer.
Explanation: Earning is the primary way individuals generate income.

7. Income (noun)

Definition: Money received, especially on a regular basis, for work or investments.
Example: Her income increased after she received a promotion.
Explanation: Income is essential for covering expenses and saving for the future.

8. Wages (noun)

Definition: Payment received by workers, usually on an hourly or daily basis.
Example: The factory workers received their wages every Friday.
Explanation: Wages are typically earned for manual or hourly work.

9. Salary (noun)

Definition: A fixed regular payment, typically paid monthly or annually, for professional work.
Example: Her annual salary is $60,000.
Explanation: Salaries are a standard form of payment for full-time employees.

10. Overtime (noun)

Definition: Time worked beyond regular hours, often compensated at a higher rate.
Example: He earned extra money by working overtime last weekend.
Explanation: Overtime rewards employees for working additional hours.

11. Commission (noun)

Definition: Payment based on a percentage of sales or performance.
Example: The salesperson received a 10% commission on every car sold.
Explanation: Commissions incentivize employees to generate revenue.

12. Bonus (noun)

Definition: Extra payment given to employees as a reward.
Example: The company distributed holiday bonuses to all staff.
Explanation: Bonuses motivate and reward employees for exceptional performance.

13. Fee (noun)

Definition: A charge for a service or professional advice.
Example: The lawyer’s fee for drafting the contract was $500.
Explanation: Fees are commonly associated with professional services.

14. Pension (noun)

Definition: A regular payment made to retired employees or individuals.
Example: After 30 years of service, he receives a monthly pension.
Explanation: Pensions provide financial security during retirement.

15. Expenses (noun)

Definition: Money spent on goods or services.
Example: Her monthly expenses include groceries, rent, and utilities.
Explanation: Managing expenses is vital for budgeting and saving.

16. Bill (noun)

Definition: A statement of charges for goods or services received.
Example: He received the electricity bill in the mail.
Explanation: Bills outline the amount owed for services or products.

17. Rent (noun)

Definition: Payment made regularly for the use of property or land.
Example: She pays $1,200 a month in rent for her apartment.
Explanation: Rent is a common expense for individuals who do not own property.

18. Mortgage (noun)

Definition: A loan secured by property, typically used to purchase a home.
Example: They took out a mortgage to buy their first house.
Explanation: Mortgages make homeownership accessible by spreading payments over time.

19. Insurance (noun)

Definition: A contract providing financial protection against losses or damages.
Example: She pays for health insurance to cover medical expenses.
Explanation: Insurance safeguards against unexpected financial risks.

20. Tax (noun)

Definition: Mandatory contributions levied by governments on income, goods, or services.
Example: Income tax is deducted from her monthly paycheck.
Explanation: Taxes fund public services and infrastructure.

21. Budget (noun/verb)

Definition: A plan for managing income and expenses.
Example: She created a budget to save for her vacation.
Explanation: Budgeting helps individuals and businesses allocate resources efficiently.

Wordlist for Money and income, Professional English in Use - Finance

Word	Definition	Example
cash	physical currency or money in the form of coins or banknotes	Are you going to pay in cash?
a coin	a small, flat, typically round piece of metal with a recognized value that is used as a medium of exchange for goods and services	I can give you a change with coins
currency	a system of money used in a particular country or region, typically in the form of banknotes and coins	Before the euro, countries had different currencies
banknote	a promissory note issued by a bank, serving as a legal tender for transactions	Central Bank issued new 10 dollar banknotes
deposit	a sum of money or other assets placed into a bank or financial institution for safekeeping, investment, or other purposes	Banks offer short-term deposits now
earn	to receive money or income in exchange for work or services rendered	Bill Gates has earned a fortune for his work on Microsoft
income	the money or financial gain received from various sources, such as employment, investments, or business activities	A lot of families need two incomes these days
wages	regular payments made to employees in exchange for their labor or services, typically paid on an hourly, daily, or weekly basis	A minimum wage is the lowest hourly, daily, or monthly wage that employers may legally pay to employees or workers
salary	a fixed amount of money paid to an employee on a regular basis, often monthly, in exchange for their work or services	As a psychotherapist, I earned a good salary and enjoyed a good life
overtime	additional pay or compensation given to employees for working beyond their regular working hours or outside of normal working schedules	Can I work overtime? I need the money
commission	a percentage of the value of a sale or transaction paid to a person or entity as compensation for their role in facilitating the sale or transaction	Around the corner there is a bank where you can exchange currency without any commission
bonus	an additional sum of money or reward given to employees or individuals as an incentive or recognition for achieving certain goals, targets, or performance levels	Additional payment to an employee as an incentive or reward is usually called bonus
fee	a charge or payment for a service or professional advice, typically provided by a professional	Do you have an entrance fee?
pension	a regular payment made to a retired or elderly person as a form of retirement income, typically based on their past employment and years of service	Basic pension amounting to State social insurance basic pension x 1.6
expenses	the costs or expenditures incurred in the course of carrying out business activities, such as rent, utilities, supplies, and other operating costs	Electricity and gas tariffs were too low to cover expenses and thus companies were unprofitable
bill	a written statement or invoice indicating the amount owed for goods or services provided, typically issued by a seller or service provider	A 10% service charge has been added to your bill
rent	the payment made by a tenant to a landlord in exchange for the use or occupancy of a property or asset	Did you buy your house or do you rent it?
mortgage	a loan obtained to finance the purchase of real estate, typically repaid over a period of time with interest	A mortgage is the biggest loan that most people will have in their lifetime
insurance	a contract in which an individual or entity pays a premium to an insurance company in exchange for protection or coverage against certain risks or losses	Companies often have insurance against negative changes in interest or foreign exchange rates
tax	a compulsory payment levied by the government on individuals, businesses, or properties to fund public expenditures and services	After tax, her monthly income is just enough to live on
budget	a plan or estimate of expected income and expenses for a specific period of time, often used as a financial tool	'Titanic' was a really high budget movie

FAQ

What is the difference between wages and salary?

Wages are typically paid hourly or daily and can vary based on hours worked. A salary is a fixed, regular payment often associated with full-time professional jobs.

Why is budgeting important?

Budgeting helps individuals and businesses track income and expenses, ensuring financial goals are met and unnecessary spending is minimized.

What is the purpose of a mortgage?

A mortgage allows individuals to purchase property by spreading the cost over time with regular loan payments.

How is commission different from a bonus?

Commission is earned as a percentage of sales or performance, while a bonus is an extra reward, often unrelated to sales.

What is the role of taxes in personal finance?

Taxes are mandatory payments that fund public services, and understanding them helps individuals plan for deductions and obligations.