Teacher’s version · Web viewHow would you rate your own/your family’s ability to manage money? Would you say you do a good job or a poor job? What could you do better? Do you

Learning English with CBCListening Lessons for Intermediate StudentsBased on CBC Manitoba Radio Broadcasts

November 25, 2011Lesson 73: Self Study Edition

Level: CLB 6 and upTopic: November is Financial Literacy MonthLanguage Skills and Functions: Listening – listening to a short interview for main

ideas and detailSpeaking – talking about financial goals; discussing

budgeting and creditReading – reading a text for main ideas and detail; Writing – writing personal financial goals;

completing a budget worksheet

Language Competencies: Vocabulary, Pronunciation, Listening and Speaking Strategies, Socio-cultural/sociolinguistic Competence

Language Tasks: Answer questions about budgeting and credit across cultures

Listen for main ideas and detail in a radio interview with financial guru Gail Vaz-Oxlade

Read sentences using money idioms and match the idiom with its meaning

Read budget information/complete a household budget worksheet

Analyze budget information and calculate expenditures

Write and describe personal short term, medium term and long term financial goals

Read a text about Credit Counselling Canada services and answer detail questions

Essential Skills: Reading text, oral communication, writing, numeracy

Appendices: TranscriptBudget ScenarioServices of Credit Canada Counselling AgenciesAnswers to Worksheets

Self Study: November is Financial Literacy Month Learning English with CBC Page 1 of 20

Manitoba Memo1

November 2011 is Canada’s first Financial Literacy Month. During November, Credit Counselling Canada and its regional organizations are hosting events to create awareness and increase the knowledge, skills and confidence of Canadians to make responsible and appropriate financial decisions.

It was twenty-two years ago that Canadian financial guru David Chilton released a book called The Wealthy Barber. That book sold a million and half copies and taught many Canadians the basics of financial literacy. The premise was that saving money isn’t that difficult. You just have to spend less than you earn!

This year, Chilton released his second book, The Wealthy Barber Returns. He says he’s troubled by what he sees happening in today’s economy. Although Canadians are saving more, Chilton says we are also spending more. In fact, we’re spending much more than we’re saving.

There are several reasons why we’re on a spending spree. First, low interest rates encourage us to borrow more. We think the rates will remain low, so we keep borrowing. Second, financial institutions are offering higher limits for lines of credit and credit cards. Many Canadians are borrowing to their maximum limit. Third, our society pressures us to buy more and buy now. Our “keep up with the Jones” mentality is pushing many of us into significant consumer debt. Instead of asking ourselves, “Do I need this?” we say to ourselves, “I work hard. I deserve this.” As Chilton says, we’re not nearly as scared of debt as we used to be.

Chilton and another well-known Canadian financial guru, Gail Vaz-Oxlade, are especially concerned about the current generation of young people. They have far greater access to lines of credit and higher credit card limits than their parents did. And they’re using credit to try to replicate a lifestyle it took their parents twenty-five years to build. They don’t have the income to support their spending and their debt keeps piling up.

Both of these plain-talking financial gurus want us to step back and find ways to take greater control of our personal finances. They want us to develop better budgeting habits and to recognize the difference between fixed/essential items and variable/discretionary items. They recommend we set realistic short term, medium term and long term financial goals. And above all, they want us to rely less on credit, especially when it comes to purchasing consumer goods and services.

According to David Chilton, there are four important words all Canadians need to learn to say. They are: “I can’t afford it.” As any credit counsellor will tell you, staying out of debt is a lot easier than getting out of debt.

1 Sources for the Manitoba Memo are under the Want to Know More section of the lesson.


Background

1. Think about the following questions

How would you rate your own/your family’s ability to manage money? Would you say you do a good job or a poor job? What could you do better?

Do you write down a budget each year? Do you review your budget to see how you’re doing? Do you make adjustments to reflect changes in your life?

The financial gurus say the key to good financial habits is to focus more on what you spend and how you spend it and less on what your earn. What do you think of that advice? Do you agree or disagree? Why?

Canadians don’t seem to fear going into debt today as much as they feared it twenty years ago. What about in your country? Do people worry about getting into debt? Do they rely on credit as much as Canadians do?

What’s your personal view on using credit? When is it appropriate? Not appropriate?

2. Vocabulary definitions

Here are some words you need to know to understand the CBC interview.

a guru A guru is someone who knows a lot about subject and gives advice to others.

financial literacy If someone is financially literate, they are able to understand basic financial information and things like how to budget, how to use credit etc.

credit card debt Debt is money you owe. Credit card debt is the money you owe on your credit card (e.g. VISA or MasterCard) when you don’t pay off the complete balance you owe each month.

good/bad lending practices Lending practices are the rules and regulations that govern when and how people can borrow money from a financial institution. Good lending practices protect both the lender and the borrower.

a credit card score Financial institutions use a rating system to decide whether you should receive a credit card and what your limit should be. Your credit card score is the rating you are given.

an adjudication tool An adjudication tool is a process or scale used to help someone obtain the information they need to make a judgement or decision.

a young lad A young lad is a young man.


a credit card limit All credit cards have a limit. The limit is the maximum amount you can charge to your card.

a credit rating Your credit rating is a score that is based on your experience using credit. If you pay your bills on time and have never had problems with debt, you will have a good credit rating. If you have had problems with bills or debt, or have never had credit, you will be seen by lenders as a greater risk and it will be harder for you to get credit.

oh gee An informal, spoken expression that means something is good or surprising.

to be a worthy individual Someone who is described as worthy is someone who deserves the respect of others due to their position or value. For example: Prince Charles is a worthy successor to the Queen. He will do the job well.

to be under the impression If you are under the impression that something is true, it means you have been lead to believe that it is true. For example: When I was young, I was under the impression that having a credit card was like having free money available whenever you needed it.

financial institutions Financial institutions are organizations that handle money, for example, banks and credit unions.

an assumption An assumption is something you believe is true, even though you may not have any proof that it is true.

to take a write down on a loan If a financial institution takes a write down on a loan, it means that they officially say a debt no longer has to be paid or they reduce the amount that has to be paid.

a consumer proposal A consumer proposal is an alternative to bankruptcy. If you declare bankruptcy, creditors may not receive any payments, so they may be willing to consider a consumer proposal. Under a consumer proposal, you work out an agreement with the people to whom you owe money to pay off some of what you owe.

to declare bankruptcy If you have an overwhelming debt load that you cannot possibly repay, you may have to declare bankruptcy.

shareholders Shareholders are the people who own shares in a company or business and who make money when the company is profitable because the value of their shares increases. They lose money if the company isn’t profitable and the value of their shares decreases.

to step up your game An idiom which means to improve or do a better job.


3. Predict what the podcast is about

In this interview, Terry MacLeod interviews TV host and financial guru Gail Vaz-Oxlade. Gail is concerned that financial institutions are giving people with lower incomes credit cards with very high spending limits. Can you predict why she might be concerned about this problem? Here are some examples:

She’s probably concerned …because she works with people who are getting into too much debt.Maybe she’s concerned ...that this will mean more people have to declare bankruptcy.I wonder if she’s concerned…that this will cause people to overspend?I don’t have any idea why she’s concerned.

4. Get ready to listen

In this podcast, you will hear three speakers. You will hear:

Marcy Markusa – hostTerry MacLeod – interviewerGail Vaz-Oxlade – financial guru and host of ‘Till Debt do Us Part and Princess2

2 Both of these shows are produced by Frantic Films, a company that got its start in Winnipeg! Their website is: www.franticfilms.com


5. Listen for language chunks

Gail Vaz-Oxlade speaks very quickly. She grew up in Jamaica and has a strong accent. It can take a little time to get accustomed to listening to her! Try this listening strategy. When you play the podcast the first time, listen for the language chunks below. While you listen, check off each chunk of language as you hear it. Listen for the stressed words within each chunk. The stressed words will be longer, slower and louder.

___ Financial Literacy Month

___ personal finance guru

___ credit card debt

___ good lending practices

___ credit score

___ debt crisis

___ credit card limit

___ establish a credit rating

___ under the impression

___ a good risk

___ ever be able to pay back

___ take a write-down

___ consumer proposal

___ bankruptcy

___ financial institutions

___ recognize they’re part of the process

___ individuals

___ accept some responsibility

When you play the podcast a second time, see if you can hear Terry MacLeod use some common reductions in spoken English. Can you hear:

ya wannus – you want us (line 8) whaddaya – what do you (lines 15 and 21)


6. Listen for main ideas and detail

When you listen to the podcast this time, listen for the main ideas. Can you find the correct answer for the following questions? The first one is completed as an example.

1. The month of November is (b).

a) Literacy Monthb) Financial Literacy Monthc) Banking Month

2. Gail Vaz-Oxlade ________________.

a) works for large financial institutionb) hosts a TV show and gives advice on personal financec) organizes Financial Literacy Month

3. She wants Canadians to stop using their credit cards for a week so that _______________.

a) we save moneyb) Canada doesn’t get into the same debt situation as the U.S.c) financial institutions receive fewer fees for credit card transactions and get the message

that they need to lend more responsibly

4. The biggest problem Gail Vaz-Oxlade has with financial institutions is that ______________.

a) they are giving people credit card limits which are too high for their income levelb) credit card limits for some individuals are not high enoughc) everyone who applies for a credit card gets one

5. It’s important to have a good credit rating because ______________.

a) it proves you will never borrow more money than you can easily pay backb) it means you can keep increasing the credit limit on your credit cardc) it shows that you know how to use credit responsibly

6. The main reason financial institutions offer consumers higher limits on their credit cards is because_______.

a) they make their money on the interest payments b) they believe consumers will only borrow what they know they can pay backc) they want to help consumers buy products or services they feel they need

7. In Gail Vaz-Oxlade’s opinion, good credit practices are the responsibility of________.

a) the lenderb) the borrowerc) both the lender and the borrower


7. Can you match the idiom with its meaning?

The English language uses many idioms, including idioms to talk about money and finances. You may hear these idioms in the media, in the workplace or in casual conversation. The idioms in the following sentences are in bold type. Can you match the idiom from the sentence with its meaning? Watch for context clues. The first one is completed for you.

Sentence meaning1 Joey had a couple of years after he lost his job where he didn’t earn

much money. Now he’s back on his feet.d

2 That two hundred dollars I got for my birthday is burning a hole in my pocket. I’m going to the mall tonight to buy a new camera.

3 Estelle bought the flooring she needed for her bathroom at Revy. Since it was cash and carry, she started installing it as soon as she got home.

4 My Dad is a real cheapskate. I can’t even get him to pay for a coffee at Tim Hortons.

5 We’ve got a coffee fund at the office. Everyone chips in.6 My family said they’d foot the bill for our wedding. I hope they don’t

change their mind when they see the budget!7 Sometimes newcomers to a country live hand to mouth when they first

arrive. They have no extra money at the end of the month.8 Did you see the price of those oranges? That’s highway robbery if you

ask me.9 I’m not going to pay an arm and a leg for a dress I could make myself

for next to nothing.10 I was hoping to buy the flour on sale at the supermarket but they were

all out. They gave me a rain check though, so I’ll get it next week.11 It’s a very special occasion so we plan to splurge on a nice dinner out.12 It’s an expensive time of year. I’m really going to have to tighten my

belt if I don’t want to go into debt.

a) to participate or donateb) to spend less money than usualc) to spend more money than you would ordinarily spendd) to return to good financial healthe) someone who doesn’t like to spend much money; a stingy personf) to promise someone they can do something/buy an item at another timeg) to live on very little moneyh) to make you keen to spend money quicklyi) to pay a lot of moneyj) to pay all the costs of somethingk) to charge a really high price for somethingl) to take the item home with you after you pay for it

Now re-write each sentence using the definition. Can you change the structure to fit the sentence? Where there are two sentences, see if you can write only one. Example: Joey wasn’t earning much money for a while but now he’s returned to good financial health.


After you Listen

a) Review your pre-listening predictions

Were you able to predict why Gail Vaz-Oxlade is concerned about the high limits on credit cards?

b) Writing a household budget

Read Appendix 2. Can you prepare a budget worksheet for this family based on the information provided? You’ll need to use a calculator.

Tasks

1. Transfer the annual and monthly expenditure information to the worksheet. Use the monthly figures to calculate the annual expenditures. The first line is completed for you as an example.

2. Calculate how much this family plans to spend in a year and write that amount in as the total.

3. Based on this budget, will the family be able to meet their short term goal of saving ten percent of what they earn ($3,000)? Yes or no? What would they have to do to meet that goal?

4. Analyze the budget. If you think an expenditure is essential to the family and can’t easily be changed, put an E beside the item. If you think the expense is discretionary and could be increased or lowered, depending on the circumstances, write a D beside the item.

5. Review the items you’ve marked as discretionary spending. Can you come up with some recommendations on what changes the family could make to could meet their short-term goal of saving $3,000?


Budget Worksheet

Expense Monthly Over 12 Months

Annual Expense

Essential (E) / Discretionary (D)

Rent (including heat, hydro water)

800 800 x 12 =9,600

9,600 E

Phone

Internet

Bus pass (husband)

Other transportation

Household contents insurance

Food etc.

Occasional child care

Clothing

Prescription drugs, dental, personal hygiene itemsEducation tuition (husband)

School supplies/expenses

Birthdays/gifts

Recreation/Entertainment

Contingency/Emergency

Total annual expenses:

Amount left for savings:

How much additional money needs to be saved to reach $3,000?

What changes to their budget could the family consider to meet their $3,000 savings goal?


c) Setting financial goals

Financial experts like Gail Vaz-Oxlade are strong believers in the importance of setting financial goals. Financial goals guide you and help motivate you. They give you a sense of purpose and direction. Your goals may be short term, medium term or long term.

The best way to set financial goals is to write them down. Be realistic. Think about what you can actually achieve with the money you make. Be prepared to make changes to your goals as your life changes. Review your goals often and ask yourself whether you are making progress. Accomplishing even small goals feels good. Try to write goals that are specific. Specific goals are better than vague goals.

Here is an example of a vague goal: Buy a car Here is an example of a more specific goal: Buy a used Honda Civic in 2013, at a cost of

$12,000, with $5,000 down and a $7,000 loan repayable over three years

Here are some examples of short term, medium term and long term financial goals:

Type of goal

Examples Timeline

Short term(1 to 5 years)

- Save $1,000 a year in a savings account- Reduce discretionary spending on birthday gifts from

$500 to $300

- in one year- in six months

Medium term(5 to 10 years)

- Save $5,000 for a down payment on a $12,000 used car

- Pay off the balance of the car loan in three years- Save $10,000 for a trip to visit family in India

- by 2013

- by 2016- by 2018

Long term(10 years plus)

- Save $20,000 in a Registered Education Savings Plan for child to start university

- by 2021


Describing Your Goals

Task 1

Now it’s your turn. What are your short term, medium term and long term financial goals? Write your goals below. Keep your goals as specific as possible. Try to write two examples for each type of goal, your timelines and obstacles you face in reaching your goals.

Type of goal Examples Timeline ObstaclesMy short term goals

(1 to 5 years)

My medium term goals

(5 to 10 years)

My long term goals

(10 years plus)

Task 2

You also need to be able to describe your goals to others. For example, when you go to the bank or credit union to borrow money to purchase a car or a home, or to further your education, you need to be able to talk about your financial goals and plans.

Do you have the language you need to talk about your short term, medium term and long term financial goals? The timelines you have set to reach these goals? The obstacles you face? Can you describe your goals to someone?


c) Setting financial goals

Read the information about credit counselling services in Appendix 3. Can you answer the detail questions below?

Statement True or False1. Money and debt problems can be very stressful. True

2. Anyone who needs personal financial assistance can ask a Credit Counselling Canada agency for help.

3. The agency will assess your situation and help you make a plan.

4. Services are always free of charge.

5. If you can’t pay for a service, the agency will still look for ways to help you.

6. Everyone who requests assistance is helped by a skilled counsellor.

7. Agency services are confidential.

8. All communication with the agency must be in writing.

9. There is no circumstance where a counsellor can contact a creditor on your behalf.

10. There are two agencies in Winnipeg.

11. Out-of-town callers must pay long distance fees.


Want to know more…

The website for Credit Counselling Canada is: www.creditcounsellingcanada.ca/Home/tabid/38/Default.aspx

Community Financial Counselling Services Manitoba can be found at:www.cfcs.mb.ca

The Credit Counselling Society’s website, called No More Debts, is at:www.nomoredebts.org

The information in the Manitoba Memo on David Chilton’s books is from:http://retirehappyblog.ca/the-wealthy-barber-returns-is-a-great-book/and www.thespec.com/news/business/article/610149--the-wealthy-barber-returns-to-the-basics-can-you-say-i-can-t-afford-it

You’ll find financial tools and tips on this site:http://abclifeliteracy.ca/financial-literacy

Gail Vaz-Oxlade has a website: www.gailvazoxlade.com/tips.html

If you are thinking of moving to Manitoba, this website has some helpful pre-arrival budgeting information: www.manitobastart.com/

CBC does not endorse and is not responsible for the content of external websites


http://www.manitobastart.com/

http://www.gailvazoxlade.com/tips.html

http://abclifeliteracy.ca/financial-literacy

http://www.thespec.com/news/business/article/610149--the-wealthy-barber-returns-to-the-basics-can-you-say-i-can-t-afford-it

http://www.thespec.com/news/business/article/610149--the-wealthy-barber-returns-to-the-basics-can-you-say-i-can-t-afford-it

http://retirehappyblog.ca/the-wealthy-barber-returns-is-a-great-book/

http://www.nomoredebts.org/

http://www.cfcs.mb.ca/

http://www.creditcounsellingcanada.ca/Home/tabid/38/Default.aspx

Appendix 1: Transcript

November 14, 2011(broadcast date) Speaker Podcast Line

Marcy Hi I'm Marcy Markusa and you're listening to Learning English

with CBC. Did you know that November is Financial Literacy

Month? Well, in this interview, Terry MacLeod interviews

personal finance guru and TV host Gail Vaz-Oxlade on one of

her favourite topics – credit card debt. 5

Terry Good Morning Gail Vaz-Oxlade.

Gail Good morning Terry.

Terry Why do ya wannus to put away our credit cards this week?

Gail I think that banks have lost sight of good lending practices. I

think they’re relying too much on the credit score for their major

credit adjudication tool and as a result, the wrong people are

getting too much credit. And I think it’s time Canadians got the

realistic message that they want to be Canada, not the US,

with the debt crisis.

10

Terry Whaddaya mean when you say the wrong people are getting

too much credit?

15

Gail Well I have a young lad that I worked with who was 21 years

old, making $24,000 a year, who got twenty, $15,000 worth of

credit card limit.

Terry Now some people believe that ah credit cards are a way of

establishing your credit rating. Whaddaya think of that?

20

Gail I think it’s absolutely true. I think if you get a credit card, you

use it responsibly, you pay it off on time every month, you do

establish a credit rating and it shows people that you are able

to use credit responsibly. You’ll use it and you’ll pay it back.

But you don’t need a credit card with a $15,000 limit to do that.

25


Terry Some people consider themselves to be lucky if the bank

offers them a credit card limit that high. They say, oh, gee, I

must be a worthy individual.

Gail That’s exactly the problem. That’s exactly the problem with it

because people are under the impression…we know we have

a financial literacy problem in Canada. I mean this is Financial

Literacy Month. And we’ve had Commissions that have studied

this. People are under the impression a financial institution

would never give them that much of a loan…

30

35

Terry I must be worth it, right?

Gail …if they couldn’t pay it back.

Terry The the assumption is, I must be worth it.

Gail Absolutely.

Terry I must be a good risk. 40

Gail Absolutely. And it’s not true because there’s no way earning

$24,000 a year he’ll ever be able to pay back $15,000. Which

incidentally means that the bank that lent him that money will

have to take a write-down on it when he goes into consumer

proposal or goes into bankruptcy. Which isn’t not good for

shareholders.

We need financial institutions to step up their game and

recognize that they’re part of the process. Sure, individuals

are part of the process and have to accept some responsibility

but so are the lenders.

45


Appendix 2: Budget Scenario

Family profile

The Khadem family immigrated to Winnipeg from Iran two years ago. The husband is 35 years old and was an engineer in Iran. He’s taking courses to upgrade his engineering training. He also works part-time. His wife is trained as a teacher. She is 32 years old. She is working with a social service agency part-time and improving her English language skills. They have two children, ages 8 and 6. For the most part, they are able to coordinate their schedules so they do not need child care.

Their short term financial goal is to keep their expenses in line with their income. They do not want to go into debt. They are also trying to save ten percent of their after-tax income each year. In the medium term, once the husband finds a full-time job, they plan to buy a used car and save for a down payment on a house. Their long term financial goals are to set aside money for their children’s post-secondary education and their own retirement.

Income

Their combined after-tax income is $30,000 a year.

Monthly Expenses

Rent (includes heat, hydro, water) $800Phone 40Internet 50Bus pas (husband) 75Other transportation (bus tickets, taxis) 75Household contents insurance 35Food/miscellaneous household expenses 650

Annual ExpensesOccasional child care 600Clothing 1,400Health, dental, personal items 720Tuition (husband) 1,200School supplies/expenses 360Birthdays, gifts etc. 600Recreation/Entertainment 1,080Contingency/Emergency 1,000


Appendix 3: Services of Credit Counselling Canada Member Agencies3

Money and debt problems are stressful, and until they are resolved they can take a real toll on a person's life. The first thing to realize is that help is only a phone call away - and making that call can make all the difference in the world!

Credit Counselling Canada member agencies are located in communities in every province across Canada. Experienced counsellors are ready to lend assistance if you have a personal financial question. We'll provide an objective assessment of your current situation and make tools and action plans available, whatever your circumstances.

As not-for-profits we provide highly-qualified support at little or no cost. No one is ever turned away or refused service on the basis of inability to pay. Everyone who requests assistance receives the individual attention of a skilled counsellor.

Our members will assist you on a completely confidential basis. If you wish the counsellor to contact one of your creditors, you must sign a specific form that gives the counsellor permission to speak on your behalf.

Getting started is simple. Our counsellors are ready to discuss your situation in-person or by telephone. Tools and information that may help you are also available online.

Member Agencies in Manitoba

Community Financial Counselling Services

Phone: 204-989-1900Toll Free: 1-888-573-2383 Fax: 204-989-1908

Email: [email protected]: www.cfcs.mb.ca

516-294 Portage AvenueWinnipeg, MB R3C 0B9

Credit Counselling Society

Telephone: 204-942-8789Toll Free: 1-888-527-8999Toll Free Fax: 1-888-520-8008Email: [email protected] Website: www.nomoredebts.org

Power BuildingSuite 208 - 428 Portage AvenueWinnipeg, MB R3C 0E2

3 From the CCC website: www.creditcounsellingcanada.ca/Home/tabid/38/Default.aspx


http://www.nomoredebts.org/

mailto:[email protected]

http://www.cfcs.mb.ca/

mailto:[email protected]

Answers to Worksheets

Listen for Main Ideas and Detail

1. b

2. b

3. c

4. a

5. c

6. a

7. c

Idiom Match

1. d2. h3. l4. e5. a6. j7. g8. k9. i10. f11. c12. b

Budget Answers (see page 20)

Read for Detail

1. T2. T3. T4. F5. T6. T7. T8. F9. F10. T11. F


Budget

Expense Monthly Over 12 Months

Annual Expense

Essential (E) / Discretionary (D)

Rent (including heat, hydro water)

800 800 x 12 =9,600

9,600(answers may vary)E

Phone 480 E

Internet 600 D

Bus pass (husband) 900 E

Other transportation 900 E

Household contents insurance

420 E

Food etc. 7,800 E on the item,D on the amount

Occasional child care 600 E

Clothing 1,400 D

Prescription drugs, dental, personal hygiene items

720 E

Education tuition (husband) 1,200 E

School supplies/expenses 360 E

Birthdays/gifts 600 D

Recreation/Entertainment 1,080 D

Contingency/Emergency 1,000 E

Total annual expenses: $27,660

Amount left for savings: $2,340

How much additional money needs to be saved to reach $3,000? $660

What changes to their budget could the family consider to meet their $3,000 savings goal?Answers will vary.


Documents

Teacher’s version · Web viewHow would you rate your own/your family’s ability to manage money? Would you say you do a good job or a poor job? What could you do better? Do you