Government subsidies and their effects on personal finances have become an increasingly common topic in IELTS Writing Task 2. Based on analysis of past exam papers, this theme appears in approximately 15% of economics-related questions, particularly in countries where government support plays a significant role in citizens’ financial well-being.
Sample Question Analysis
Some people believe that governments should provide financial support to help citizens manage their personal finances, while others think individuals should be responsible for their own financial decisions. Discuss both views and give your opinion.
This question requires candidates to:
- Examine both perspectives on government financial support
- Provide relevant examples and explanations
- Present a clear personal stance
- Maintain a balanced discussion
Band 8-9 Model Essay
For those interested in managing finances during economic recession, understanding government support is crucial. Here’s a high-band response:
Government intervention in personal finance management is a contentious issue that merits careful consideration. While some advocate for state-provided financial assistance, others maintain that financial responsibility should rest solely with individuals. This essay will examine both perspectives before presenting my own viewpoint.
Proponents of government financial support argue that state intervention can help create a more equitable society. When governments provide subsidies for essential services like healthcare and education, citizens can better manage their finances and avoid crippling debt. For instance, in many European countries, government-subsidized healthcare systems prevent families from facing bankruptcy due to medical emergencies, enabling them to maintain financial stability.
Conversely, those opposing government intervention contend that personal financial responsibility promotes better money management skills. They argue that relying on government support can foster dependency and reduce motivation to develop financial literacy. Furthermore, taxpayers may object to their money being used to support others’ financial decisions, particularly in cases where poor choices led to financial difficulties.
In my opinion, while individual responsibility is important, some level of government support is necessary for societal well-being. A balanced approach where governments provide basic financial safety nets while encouraging personal financial responsibility would be most effective. This could include subsidized financial education programs and targeted assistance for essential services, similar to how choosing the right mortgage for homebuyers often involves government-backed programs.
Band 6-7 Model Essay
Government help with money matters is debated a lot these days. Some think the government should give financial help to people, but others believe people should handle their own money. I will discuss both sides and share my thoughts.
People who support government help say it’s important because life is expensive. When the government helps with things like housing and education, people can save money and live better. For example, in Singapore, the government helps citizens buy homes through special programs, which makes housing more affordable for many families.
On the other hand, some people think everyone should manage their own money. They say government help makes people lazy and dependent. Also, it costs a lot of tax money which could be used for other things. For instance, some countries spend too much on welfare and have budget problems.
I think both sides have good points, but some government help is needed. While people should try to be responsible with money, the government should help with basic needs. This could include helping with healthcare costs and giving financial advice to people who need it.
Key Vocabulary
- subsidy (n) /ˈsʌbsɪdi/ – financial support provided to help an industry or business
- fiscal policy (n) /ˈfɪskəl ˈpɒlɪsi/ – government spending and taxation decisions
- welfare state (n) /ˈwelfeə steɪt/ – system where government protects citizens’ well-being
- financial literacy (n) /faɪˈnænʃəl ˈlɪtərəsi/ – understanding how to manage money
- dependency (n) /dɪˈpendənsi/ – reliance on others for support
Future Practice Topics
Consider practicing with these related questions:
- Should governments provide universal basic income?
- How can governments balance welfare spending with economic growth?
- What role should governments play in retirement planning?
Share your practice essays in the comments for feedback and discussion.