Debt

Discussion Starters
PRE-READING WARM-UP QUESTIONS
1. What is a good debt and what is a bad debt?
2. What do you think the expression drowning in debt means?
3. How can a government be a bad financial role model for its citizens?
4. What does the expression save for a rainy day mean?

Rather go to bed supperless, than

rise in debt. ~ Benjamin Franklin

PRE-READING VOCABULARY TASK

Match the words on the left with the meanings on the right.

1. in the long run

2. expense
3. mortgage
4. daycare
5. in the red
6. asset
7. afford
8. interest
9. rack up
10. pay off

a. something that increases in value, you can sell

or use it to earn money
b. cost for everyday living or working
c. a loan for the purchase of a home
d. in debt, to owe money
e. to build up a lot over time
f. a person or organization that looks after young
children while parents are working
g. to have the money or ability to pay for something
h. over a long period of time
i. extra money owed to a lender, the cost of borrowing
j. to give back all or some of the money that is owed to
a lender

Debt
Can you afford your own life?
Do you feel like youre drowning in debt, or do you live within your means? Many young people owe
thousands of dollars in student loans. Money spent on education should lead to financial freedom in the long
run. This is not always the case, however. Newlyweds often find themselves drowning in debt. After paying
off an expensive wedding, they face a higher cost of living with new expenses such as a mortgage, daycare
bills, and health insurance. While some families dig themselves out of debt and begin saving money for a
rainy day, others remain in the red throughout their lives.
Living debt-free is not easy. Without loans, we wouldnt be able to buy homes or pay for post-secondary
education. Financial experts call these debts that lead to assets good debts. On the other hand, debts on a
credit card are usually bad debts. People buy cars and vacations they cant afford, and then pay high
interest for unnecessary purchases. Some people use one credit card to pay off another. They rack up huge
bills, and spend all of their earnings paying off the interest. Have you ever found yourself still paying for
something you dont own or use anymore? Getting out of debt takes hard work!
Individuals arent the only ones drowning in debt. Countries around the world are deep in debt. The United
States is trillions of dollars in debt. The National Debt Clock in New York City shows how quickly the US
debt is growing. What does a nations debt mean to its citizens? Higher debt means higher taxes and higher
interest rates. As governments try to reduce the debt, important services are cut. In the past, the only way to
recover from a debt was to go to war! Is war the only answer? What else can governments do to get their
spending under control?

Copyright 2013, Red River Press Inc. For use by members of ESL-library.com in accordance with membership terms.

Debt

Discussion Starters
COMPREHENSION
Discuss these questions in pairs, and write the answers in your notebook.

1. Why are many young people drowning in debt before they have their first job?
2. What expenses are mentioned in the reading?
3. According to financial experts, what is an example of a good debt?
4. Why does the reading mention New York City?
5. How have some nations recovered from debt in the past?
VOCABULARY REVIEW
A. Complete the sentences using the vocabulary from page 1.
1. We were in the ______________ until my wife got a raise at work. Now we have some savings.
2. Though your home is usually an ___________, its a liability if you owe more than its worth.m
3. Now that we have two kids, our childcare ____________ have doubled. m
4. We couldnt _________________ a new car, so we bought a used one. m
5. My sister __________________ a huge debt on her credit cards. She needs a second job to pay them off.
6. The first year that we had a mortgage, we paid a very high __________ rate. m

B. Pronunciation Practice Words with silent letters:

The most common silent letter in English is the vowel e. However, many words like debt have a silent consonant. Circle
the silent consonant in the following words. Dont be fooled! Some words have no silent consonants. Put a star beside the
word that has a pair of silent consonants.
1. knowledge
2. fasten
3. foreign

4. scissors
5. womb
6. doubt

7. strap
8. knapsack
9. design

10. fought
11. salmon
12. hymn

13. science
14. gnome
15. April

16. castle
17. Tuesday
18. Christmas

DISCUSSION QUESTIONS
1. How would you feel if your government sent each citizen a bill for part of the national debt? Is this a possible
solution?
2. Why cant countries just print more money to get out of debt?
3. Why do some people and governments manage their money better than others?
4. Should banks make it harder for people to get credit cards?
CRITICAL THINKING
How can a country that is over 16 trillion dollars in debt afford to provide aid to a country in need?

Copyright 2013, Red River Press Inc. For use by members of ESL-library.com in accordance with membership terms.

Teachers Notes
Lesson Description: Students read about individual and national debt. The lesson includes vocabulary review exercises,
comprehension questions, and discussion questions. IntermediateAdvanced. Time: 1.52 hours.
Tags: debt, money, finances, discussion, US, intermediate, advanced, pronunciation
Note: In the following teachers notes, a * indicates a place in the lesson where you might want to encourage your students to take their
learning one step further. (Some teachers call this teaching approach Demand High.) Try to involve as many learners as possible.
Rather than just telling students that the answer is right or wrong, invite them to talk about why it is right or wrong. If you have students
in a group setting, make sure that some of your students arent just sitting back quietly letting others do the work.
PRE-READING WARM-UP
13. Individual answers.
4. To have savings in case something unexpected happens. Ask your students for examples of a
rainy day (losing a job, illness, natural disaster, etc.).
* QUOTE: Ask your students if they agree or disagree with Benjamin Franklins quote. Have
students bring in their own quotes about debt for discussion.
PRE-READING VOCABULARY TASK
1. h
2. b
3. c
4. f
5. d

6. a

7. g

8. i

9. e

10. j

See our Discussion Starters

Teaching Guide (www.esllibrary.com/discussion) (under
Teachers Notes at the bottom of
the page) for a variety of ways to
use the reading. Audio is available
for this lesson. Students can
access the audio via our podcast
and iTunes. (http://www.esllibrary.com/blog/category/
podcasts/)

* After your students have read the reading, go back to the vocabulary match exercise. Can your students spot any words that may mean
something different in a different context? Ex 1: interest (I have lost interest in my studies.) Ex 2: pay off (My hard work paid off.)

COMPREHENSION QUESTIONS
1. So many young people are drowning in debt before they have their first job due to student loans.
2. Expenses mentioned in the reading include a mortgage, daycare service, health insurance, post-secondary education, cars,
vacations, and taxes.
3. According to financial experts, a mortgage or post-secondary education are examples of a good debt.
4. The reading mentions New York City because there is a National Debt Clock there where people can see how quickly the US debt
is growing. *Have students guess how much the US is in debt. Look up the National Debt Clock online. Watch the numbers. Ask
if this shocks your students or not. Compare the US debt to that of other countries.
5. In the past, some nations recovered from debt by going to war.
VOCABULARY REVIEW
A. Fill in the blanks
1. red 2. asset 3. expenses

4. afford

5. racked up

B. PRONUNCIATION - Silent letters

1. k 2. t 3. g 4. c 5. b 6. b 7. none 8. first k
13. first c 14. g 15. none 16. t 17. none 18. t

6. interest

9. g

10. gh (pair)

11. l

12. n

* Invite students to notice patterns. Which letters and letter combinations are often silent in
English? (b in final position, k in initial position, l and t in middle of a word, gh before t, etc.)
DISCUSSION QUESTIONS and CRITICAL THINKING Individual answers.

Copyright 2013, Red River Press Inc. For use by members of ESL-library.com in accordance with membership terms.