BUDGETING/ BUDGET TYPES /EXPENSE TYPES/THE INTEREST RATE/COST,

EXPENSES, AND EXPENDITURES

1. Work in groups and discuss the following questions:

• What do you understand for earning and spending?
I understand, by profit, all the income that I acquire economically and spend on
purchases and outings.
• How do you balance earning and spending on your personal budget?
Making an inventory of what I have and what I don't have in order to necessarily spend
what is necessary.
• What facts do you need to take into account to do a good balance?
Be responsible and aware of the income that is generated so that expenses are
proportional, look for ways to save or save an amount of income.

3.1. Speaking practice: Talk about your personal expenses.

Now, you will socialize the results of the previous exercise in pairs and will compare
your expenses with your partner answering the following questions:
• On which item do you spend the most?
I spend more on transportation and food.
• On which item do you spend the least?
What I spend the least on is going out, street food, etc.
• What does liquidity mean?
Liquidity is an active ability to convert into money without losing its value.
• What are the most liquid assets?
The most liquid assets will always be money, which are coins and bills, whether
tangible or in bank accounts, shares or investments in the stock market, that is,
electronic money.

Try out making a statistics chart with the group’s information.

3.2. Listening practice.

Work in groups of four and discuss: what do you use your money for?
Fill in the chart below:
STEP WHAT SHOULD YOU DO ABOUT CREATING A BUDGET?
Step 1 Measure your income: Look at the total amount of money you
normally earn, wages, salaries, and any additional income
streams.
Step 2 Make a list of all your expenses, including fixed costs as well as
expenses.
 Step 3 Differentiate between necessary expenses and non-essential
expenses, prioritize your needs and allocate a portion of your
income to them first
Step 4 Identify short- and long-term financial goals, such as saving for
emergencies, paying off debt, or investing for the future.
Step 5 Regularly track your spending against your budget to ensure you
stay on track. Adjust your budget as necessary based on
changes in income, expenses, or financial goals.

3.3. Use your own words to explain the following concepts.

Use your own words to explain the following concepts:
CONCEPT MEANING
LIQUITY quality of assets to be converted into cash
LIQUID ASSETS assets that can be quickly converted into cash without losing
value.
LIABILITIES set of obligations imposed by the financing provided
QUICK RATIO It is a liquidity indicator that measures a company's ability to
cover its short-term liabilities with its short-term assets.
OPERATING CASH It is the cash generated by the main activities of a company.
FLOW RATIO

3.4. Writing Practice: create your own income reporte.

INCOME
Learning contract: $ 650,000
EXPENSES THIS MONTH
Transportation: 130,000
Clothing: 250,000
cellular plan payment: 50,000
food: 100,000
laptop fee: 120,000
Total: 650,000