Section 1 — The Language of Money
8 key phrases
Session 3 Key Phrases: Earning, spending, saving
These are the phrases you need to talk about personal finance decisions clearly and confidently in English — in conversations with colleagues, advisors, or anyone who asks about your financial life.
I need to run the numbers on that.decision phrase
Use when: you need time to calculate before committing to a financial decision
Professional and natural. Signals you make data-driven decisions, not impulse decisions. Always better than "I don't know" or silence.
"The rental yield sounds attractive, but I need to run the numbers on it — maintenance, tax, and voids can eat the margin quickly."
What's the opportunity cost of that?analytical question
Use when: asking what you give up by choosing one option over another
Every financial decision has an opportunity cost — what you cannot do with the same money. Asking this question moves conversations from price to real value.
"Buying a new car feels affordable — but what's the opportunity cost? That same money invested for 20 years could be worth ten times as much."
That's discretionary spending.categorizing phrase
Use when: distinguishing a want from a need, or a flexible cost from a fixed one
Discretionary = optional. Non-discretionary = essential. Understanding this distinction is the foundation of any serious budget.
"Subscriptions, dining out, holidays — that's all discretionary spending. It's also where you have the most control."
I'm building up my emergency fund.goal-stating phrase
Use when: explaining your current savings priority or financial strategy
An emergency fund is 3–6 months of living expenses in accessible savings. Mentioning it signals financial responsibility and planning.
"I'm building up my emergency fund before I start investing — financial security has to come before growth."
The cost-benefit doesn't stack up.evaluative phrase
Use when: concluding that something is not worth its price after analysis
More sophisticated than "it's too expensive." This phrase signals you have weighed both sides and made a reasoned judgment.
"The premium service costs three times more but delivers maybe 20% more value — the cost-benefit simply doesn't stack up."
I'm working to reduce my fixed costs.strategy phrase
Use when: describing an active effort to lower unavoidable monthly expenses
Fixed costs are the expenses you pay regardless of what you do — rent, insurance, subscriptions. Reducing them creates permanent financial breathing room.
"I'm working to reduce my fixed costs this year — renegotiating my insurance and moving to a smaller flat frees up £600 a month."
That's essentially lifestyle inflation.diagnostic phrase
Use when: identifying the pattern of spending rising automatically as income rises
Lifestyle inflation is why most people never feel richer even as they earn more. Naming it is the first step to countering it.
"He got a £15,000 raise and immediately upgraded his car and flat — that's essentially lifestyle inflation. His savings rate hasn't moved."
My savings rate is the number I track most closely.priority phrase
Use when: explaining your approach to personal finance and what you measure
Savings rate — the percentage of income you save — is arguably the most powerful predictor of long-term wealth. Tracking it is the mark of a deliberate financial life.
"My savings rate is the number I track most closely — income and expenses matter less to me than the gap between them."