Theme: Budget and investment Discussion Brainstorming

Theme: Budget and investment

Discussion Brainstorming (without thinking to say)

“Budget” in your mind….

Are you good financial manager in your daily life…… why/why not?

Investment is very important because………

In which branch of life, to invest money is useful……

Study and learn new words

English	English Equivalents	Uzbek	Russian
Enormity	An action that is morally wrong	Zo’ravonlik	Насилие
Crumbled	To stop existing or being effective	foydаsizlik	Без полезно
Payroll	A list of all the people that a company employs and the money that each of them earned	To’lov vedmosti	Платёжная ведомость
Fuzzy	Difficult to understand	Anglash qiyin	Нечеткий
Donation	The act of giving money or good to an organization	Pul ajratish	Дарение
Victim	Smth that is badly affected by a situation, adecision	Qurbon	Потерпевший

Task 1. Read the direction

Create a Short-Term Budget

Some people spend their incomes without thinking of what they are doing or whether their buying decisions make much sense. They may realize that they must pay their rent and insurance bills, or make monthly car payments. However, beyond these large and regular expenditures, things can get kind of “fuzzy.” It is not uncommon for people to run out of money from one paycheck to the next.
Making and following a budget is an obvious answer to this problem, but it is hard to do when you’re not really aware of where your money goes.
To take control of your financial situation, you should first create a series of short-term budget worksheets. These are documents that record all income and spending that takes place over a specific period of time, most often one month. When bills, such as insurance, are paid only once or twice a year, you must include an appropriate share as spending in each worksheet.

Task 2. Consider Simpson’s budget worksheet for June, and then answer the questions that follow.

1. 
   How much was Simpson able to save in June?
   

Simpson was able to save $30,06 in June

2. 
   Which sources of her income may not be the same from month to month?
   

Savings, interest, babysitting job

3. 
   Which types of spending might not be the same from month to month?
   

Credit card bill, telephone bill, groceries

4. 
   Why would a series of short-term budget worksheets be needed to develop a long-term budget?
   

A series of short-term budget worksheets can show your stable income and spending which help to develop a long-term budget

Task 3. Create a short-term budget worksheet of your own. Do you find any surprises in how you receive or spend your income?

Income			Amount		Outcome			Amount
Date	Source	$		Date		Purpose	$
9.03	Studentship	83000		01.03		Telephone bill	70000
15.03	Tutorial job	300000		10.03		New dress	200000
20.03	Birthday gift	150000		17.03		Groceries	300000
Total			553000		Total			570000
Deficit: 37000

Task 4. Work with a partner. Discuss the questions.

Speaking & Vocabulary: investments
• How many different kinds of investment can you think of?
• What kinds of investments do you, your friends or family have?
• What are the safest and the riskiest investments at the present time?
• Who would you go to for investment advice? Why?

Task 5. Complete sentences 1–7 with the phrases a–g. Use a dictionary if necessary.

a and create a company e to pay the dividends that have been

b for other people to calculate promised c of your current investors f when you can attract no new investors

d on their invested capital g with the capital of new investors

Run your own Ponzi Scheme in 7 Easy Steps!

1 Raise a small amount of capital …………
2 Attract investors by promising high returns………. .
3 Use the invested capital ……………
4 Attract more investors by using the word-of-mouth recommendations ……….
5 Continue to pay high returns ……………
6 Make sure that your assets are hidden or difficult…………….
7 Make sure that you have a plan for the day …………

1. 
   A
   
2. 
   D
   
3. 
   F
   
4. 
   C
   
5. 
   G
   
6. 
   B
   
7. 
   E
   

Task 6. Reading
a) Read the article and choose the best title, 1, 2 or 3.
1 Bernie Madoff: no regrets
2 Never trust your children
3 The world’s greatest thie

Correct: 3

b) Explain the words in italics in your own words.
1 One day, at the end of 2008, Madoff’s empire crumbled (last power and stopped existing).
2 To help him to manage the fund, he had taken more and more of his family members onto the company payroll. (they’re employed by company)
3 Countless pension funds went up in smoke. (be destroyed, come to nothing)
4 Thousands of families were ruined. (the families lost all their money)
5 Madoff acknowledged the enormity of his crimes. (difficult situation)
6 Billions of dollars are still not accounted for. (being worried of losing some of them)
7 The full story may never be revealed. (to be make known the information which was secret)


Task 7. Write a short summary (maximum 100-120 words) of the  article.

Madoff's apparently ultra-high returns persuaded clients to look the other way. In fact, he simply deposited their funds in an account at Chase Manhattan Bank—which merged to become JPMorgan Chase & Co. in 2000—and let them sit. The bank, according to one estimate, may have made as much as $483 million from those deposits, so it, too, was not inclined to inquire.

When clients wished to redeem their investments, Madoff funded the payouts with new capital, which he attracted through a reputation for unbelievable returns and grooming his victims by earning their trust. Madoff also cultivated an image of exclusivity, often initially turning clients away. This model allowed roughly half of Madoff's investors to cash out at a profit. These investors have been required to pay into a victims' fund to compensate defrauded investors who lost money.