Introduction
Money choices shape almost every stage of modern life—from paying for university to protecting a family against emergencies. Unsurprisingly, topics about The importance of financial literacy appear frequently in IELTS Writing Task 2 because they connect education, social outcomes and individual responsibility. In this guide, you will learn how to approach this high-frequency topic, analyze task requirements correctly, and write three model essays at Bands 6, 7, and 9. You will also get examiner-style scoring analysis, topic vocabulary, and sentence structures that boost your score.
Table Of Contents
Verified past exam questions on this theme include:
- Reported by IELTS-Blog: “Financial education should be a mandatory component of the school curriculum. To what extent do you agree or disagree?”
- Reported by IELTS Liz: “Some people think that secondary school students should learn money management because it is an important life skill. To what extent do you agree or disagree?”
If you want a broader context for why this topic matters, you can explore The importance of financial literacy education for background ideas that can feed into your examples and explanations: The importance of financial literacy education.
1. Question & Analysis
Financial education should be a mandatory component of the school curriculum. To what extent do you agree or disagree?
-
Question type and requirements:
- Type: Opinion (Agree/Disagree).
- You must clearly state your position and support it throughout with relevant reasons and examples.
- Balanced positions are acceptable, but your stance must be consistent.
-
Key terms explanation:
- “Financial education”: knowledge and skills such as budgeting, saving, understanding interest, credit, insurance, and basic investing.
- “Mandatory”: compulsory, integrated across or within subjects in the curriculum.
-
Common pitfalls:
- Drifting to general education reform without linking to money management.
- Listing tips without analysis (e.g., “students should save money”) instead of arguments about why schools should teach it.
- Over-reliance on personal anecdotes with no broader logic.
-
Strategic approach:
- Decide your stance: fully agree, partially agree, or disagree.
- Group ideas: benefits for individuals (e.g., avoiding debt), society (e.g., reduced welfare burden), and education (e.g., practical life skills).
- Use concrete examples: small projects (simulated budgeting), student bank accounts, or national schemes.
- Conclude logically by restating and qualifying your position.
For students who want to connect this topic with technology-driven habits, it helps to consider why cashless payments and crypto create new risks and opportunities; this is developed here: importance of financial literacy in the digital age.
2. Band 8-9 Sample Essay: The importance of financial literacy
Band 8-9 essays are precise, well-developed, and cohesive, with a clear position and flexible language.
Essay (≈300 words)
In an age of contactless payments and easy credit, schools that ignore financial literacy risk sending graduates into adult life unprepared. I strongly agree that financial education should be mandatory, because it equips teenagers with practical tools, reduces social costs, and can be delivered without squeezing out academic depth.
First, compulsory financial education gives students usable skills. Teenagers learn how compound interest works, why minimum credit-card payments are dangerous, and how to build an emergency fund. Such knowledge is not abstract; a Grade 10 student who practises budgeting for a school trip quickly understands trade-offs between short-term wants and long-term goals. In many Asian contexts where families prioritise university tuition, early exposure to budgeting helps students avoid predatory loan offers later on.
Second, society benefits when citizens manage money responsibly. When fewer young adults default on debt, banks face lower losses, and governments face less pressure to expand safety nets. Simple, evidence-based lessons—such as comparing interest rates or reading the “total repayable” on a loan—can prevent years of hardship. Moreover, integrating case studies on digital scams helps students recognise red flags before they share personal data.
Critics worry that adding financial literacy will dilute core subjects. Yet the subject can be embedded into mathematics (percentages and interest), economics (risk and return), and even civics (consumer rights), thereby enriching rather than crowding the timetable. A short, standards-based module each year, culminating in a capstone project—like running a charity sale with transparent accounts—ensures cumulative learning without excessive assessment load.
In short, making financial education compulsory is both practical and fair. By teaching teenagers to budget, evaluate credit, and protect themselves online, schools give them a toolkit they will use daily—far more often than many facts they memorise for exams.
Scoring
| Criterion | Band | Justification |
|—|—|—|
| Task Response | 9 | Clear, consistent position; fully addresses prompts with relevant, specific support (compound interest, credit risk, curriculum integration). |
| Coherence & Cohesion | 9 | Logical progression; cohesive devices used flexibly; clear paragraphing and referencing. |
| Lexical Resource | 8/9 | Precise lexis (predatory loan offers, capstone project, safety nets); collocations used naturally; no awkward phrasing. |
| Grammar Range & Accuracy | 8/9 | Wide range: subordination, non-defining clauses, participle phrases; virtually error-free. |
Why it excels
- Clear thesis and maintained stance.
- Specific, real-world examples (budgeting for trips, reading “total repayable”).
- Balanced counterargument and rebuttal.
- Strong paragraph unity and topic sentences.
- Advanced yet natural vocabulary.
- Varied complex sentences with accurate punctuation.
For those focusing on teens and campus readiness, see how arguments can be tailored to youth with relevant examples here: importance of financial literacy for young people.
3. Band 6.5-7 Sample Essay
Band 6.5-7 essays present a clear opinion and adequate development, but may have occasional repetition, less precise lexis, or limited depth in one area.
Essay (≈265 words)
I believe schools should include financial literacy because many young people leave school without basic skills like budgeting and understanding interest. Overall, I agree, although the subject should be taught in a practical way rather than as heavy theory.
One reason is that students face money decisions earlier than before. Many teenagers in Asia work part-time or buy online, so they need to know how to manage spending and avoid impulse purchases. If they study simple methods like the “50-30-20” budgeting rule, they can plan their pocket money and save for emergencies. This helps them feel in control and reduces stress.
Another benefit is avoiding debt. Young adults often accept credit card offers with attractive promotions but then pay high interest. Classes can show students how interest accumulates and how minimum payments are risky. In addition, teachers can discuss phone scams and fake investment schemes that are spreading on social media.
However, financial literacy should not replace essential academic subjects. A good solution is to integrate it into maths, economics, or homeroom sessions, and also organise short projects where students keep records and present their spending plans. In this way, they see how knowledge applies to real life.
In conclusion, making financial education part of the school programme is sensible, as long as lessons are practical and connected with students’ daily choices.
Scoring
| Criterion | Band | Justification |
|—|—|—|
| Task Response | 7 | Clear position; relevant ideas; some examples (50-30-20 rule, scams), but analysis could be more developed. |
| Coherence & Cohesion | 7 | Logical organisation; some repetitive linking (“another,” “in addition”); cohesion is adequate. |
| Lexical Resource | 7 | Appropriate vocabulary with some topic range; less precision than Band 9; limited variety of collocations. |
| Grammar Range & Accuracy | 6.5/7 | Mix of complex and simple sentences; minor errors and some safe structures; mostly accurate. |
Direct comparison with Band 8-9
- Depth of analysis: Band 9 explains societal benefits and curriculum integration in detail; Band 7 mentions them briefly.
- Lexical precision: Band 9 uses exact terms (predatory loan offers); Band 7 uses broader phrases (attractive promotions).
- Counterargument: Band 9 presents and refutes it; Band 7 suggests a solution without full rebuttal.
- Examples: Band 9 gives concrete scenarios (reading total repayable), while Band 7 stays general.
If you are especially interested in early interventions at home and school, this resource connects curriculum ideas with age-appropriate practice: importance of financial literacy for children.
4. Band 5-6 Sample Essay
Band 5-6 essays communicate a position but have limited development, frequent repetition, and noticeable grammar or word-choice problems.
Essay (≈255 words) with error highlighting
Many people say schools must teach money, and I mostly agree because students will use it all the time. Firstly, student should know budgeting and avoid spend too much on online shopping. If schools give them lesson about saving, they will be safe from debt, which is very common now. Also, they can learn invest and insurance, which are helpful in future life.
On the other hand, some people think school has already many subjects and cannot add more. It is true that teachers are busy and students feel pressure. But I think financial education is not long subject and can be mix into maths or even sport activities such as planning a class event with money. This activities will make them understand money in practice.
Another reason for my opinion is that youngster nowadays are easy to be cheated online by scammer. If they learn about interest rates and read contract carefully, they can protect their money. Some people say parents should teach this at home, but not all parents have time or good knowledge.
In conclusion, although there are many subjects already, I believe financial literacy is important and should be in school curriculum in some way.
Scoring
| Criterion | Band | Justification |
|—|—|—|
| Task Response | 6 | Position present; some relevant ideas; limited development and examples. |
| Coherence & Cohesion | 6 | Overall organisation, but basic sequencing; some repetition and vague referencing. |
| Lexical Resource | 5.5/6 | Topic words used, but collocation errors (“learn invest”), vague lexis, occasional misuse. |
| Grammar Range & Accuracy | 5.5 | Noticeable errors with agreement, articles, plurals, and word forms; some correct complex attempts. |
Error analysis and corrections
| Mistake | Why it’s wrong | Correction |
|—|—|—|
| “student should know budgeting” | Missing plural/article; verb-noun use | “students should learn budgeting” |
| “avoid spend too much” | Verb form after “avoid” | “avoid spending too much” |
| “lesson about saving” | Article and plural | “lessons about saving” |
| “learn invest and insurance” | Verb pattern and parallel nouns | “learn about investing and insurance” |
| “This activities” | Agreement | “These activities” |
| “youngster” | Countable/plural form | “youngsters” or “young people” |
How to improve from Band 6 to 7
- Add specific examples (e.g., comparing two loan offers with different APRs).
- Use accurate collocations: “take out a loan,” “build an emergency fund,” “default on debt.”
- Vary linking devices beyond “firstly” and “also.”
- Proofread for agreement, articles, and verb patterns.
5. Essential Vocabulary for The importance of financial literacy
| Word/Phrase | Type | Pronunciation | Definition | Example | Collocations |
|---|---|---|---|---|---|
| financial literacy | noun | /faɪˈnænʃl ˈlɪtərəsi/ | Ability to manage money effectively | Financial literacy reduces costly mistakes. | improve/build/teach financial literacy |
| compound interest | noun | /ˈkɒmpaʊnd ˈɪntrəst/ | Interest calculated on principal and prior interest | Compound interest can rapidly grow debt. | calculate/understand compound interest |
| emergency fund | noun | /ɪˈmɜːdʒənsi fʌnd/ | Savings for unexpected expenses | She built a three-month emergency fund. | build/maintain/draw on an emergency fund |
| predatory lending | noun | /ˈprɛdəˌtɔːri ˈlɛndɪŋ/ | Unfair lending targeting vulnerable people | Laws curb predatory lending practices. | curb/ban predatory lending |
| budgeting | noun | /ˈbʌdʒɪtɪŋ/ | Planning income and expenses | Budgeting helps students avoid overspending. | monthly/weekly budgeting; budgeting app |
| credit score | noun | /ˈkrɛdɪt skɔː/ | Rating of creditworthiness | A poor credit score raises borrowing costs. | improve/check/build a credit score |
| take out a loan | verb phrase | /teɪk aʊt ə ləʊn/ | Borrow money from a lender | He took out a loan for tuition. | take out/repay/secure a loan |
| default on debt | verb phrase | /dɪˈfɔːlt ɒn dɛt/ | Fail to repay borrowed money | Many default on debt due to job loss. | risk/default on debt |
| digital scam | noun | /ˈdɪdʒɪtl skæm/ | Online fraud to steal money/data | Students must recognise digital scams. | fall for/avoid/report a digital scam |
| opportunity cost | noun | /ˌɒpəˈtjuːnəti kɒst/ | Value of the next best alternative | Saving has an opportunity cost of spending. | evaluate/consider opportunity cost |
| in the long run | phrase | /ɪn ðə lɒŋ rʌn/ | Over an extended period | Budgeting pays off in the long run. | beneficial/profitable in the long run |
| by the same token | linker | /baɪ ðə seɪm ˈtəʊkən/ | For a similar reason | By the same token, savings reduce stress. | — |
| nevertheless | linker | /ˌnɛvəðəˈlɛs/ | In spite of that | Nevertheless, core subjects remain vital. | — |
| prudent | adj | /ˈpruːdnt/ | Careful and wise | Prudent spending protects cash flow. | prudent decision/investor/approach |
| trade-off | noun | /ˈtreɪd ɒf/ | Balance between two competing options | There is a trade-off between saving and lifestyle. | make/consider a trade-off |
6. High-Scoring Sentence Structures
- Complex subordination
- Formula: Subordinator + clause, main clause.
- Example from Band 9: When fewer young adults default on debt, banks face lower losses.
- Why it scores well: Shows cause-effect precisely.
- Extra examples: If students grasp compound interest early, they avoid costly mistakes. Although parents guide spending, schools ensure consistency.
- Common mistake: Using “because of” with a full clause (use “because” + clause or “because of” + noun).
- Non-defining relative clauses
- Formula: Noun, which/who + extra information, verb…
- Example: The subject can be embedded into mathematics, which thereby enriches the timetable.
- Why: Adds detail smoothly; punctuation control.
- Extra: Credit cards, which are widely advertised to students, often hide fees. Budgeting apps, which many teenagers already use, simplify tracking.
- Mistake: Omitting commas or using “that” instead of “which” in non-defining clauses.
- Participle phrases
- Formula: V-ing/V-ed phrase, main clause.
- Example: Integrating case studies on digital scams helps students recognise red flags.
- Why: Concise, advanced cohesion.
- Extra: Taught consistently across grades, financial literacy becomes habitual. Facing real prices, students learn to prioritise.
- Mistake: Dangling modifiers that do not clearly refer to the subject.
- Cleft sentences
- Formula: It + be + focus + that/who + clause.
- Example: It is financial education that equips teenagers with practical tools.
- Why: Emphasises key idea; rhetorical control.
- Extra: It is early guidance that prevents debt. It is practical projects that make lessons memorable.
- Mistake: Overuse leading to unnatural emphasis.
- Advanced conditionals
- Formula: If + past simple, would + base verb (unreal); If + should, imperative/recommendation.
- Example: If schools embedded finance across subjects, students would practise it daily.
- Why: Hypothetical reasoning shows flexibility.
- Extra: If teens compared APRs, they would choose cheaper loans. Should schools lack time, short modules could suffice.
- Mistake: Mixing “would” in the if-clause.
- Inversion for emphasis
- Formula: Only when/Not until + inversion + main clause.
- Example: Only when lessons are practical do teenagers apply them.
- Why: Sophisticated emphasis; range of grammar.
- Extra: Not until they face real bills do students understand interest. Rarely do parents explain APR clearly.
- Mistake: Forgetting auxiliary inversion after the fronted adverbial.
For readers who want to connect classroom language with community and workplace expectations, consider how arguments shift when discussing the broader public: importance of financial literacy in today’s society.
7. Self-Assessment Checklist
Before writing
- Identify question type; choose a clear stance.
- Brainstorm 2-3 main reasons plus 1 counterargument.
- Plan examples that are specific and plausible.
While writing
- Write a direct thesis in the introduction.
- Use clear topic sentences per paragraph.
- Support each main idea with a concrete example or mini-case.
After writing
- Check for task focus: every paragraph relates to financial literacy.
- Replace generic words with precise collocations (APR, emergency fund).
- Proofread articles, agreement, and verb patterns.
Time management tips
- 3-4 minutes: plan ideas and structure.
- 25-27 minutes: write 4 paragraphs (intro, 2 body, conclusion).
- 4-5 minutes: edit for clarity, accuracy, and cohesion.
Conclusion
The importance of financial literacy aligns perfectly with IELTS Task 2 because it invites argument, solution-focused thinking, and relevant real-life examples. To improve, master the question type, build paragraphs around specific, illustrative examples, and use precise financial vocabulary. Write regularly under timed conditions and compare your work to the Band 7 and Band 9 models above to see gaps in idea development, cohesion, and grammar. Most learners can move one band in 6–8 weeks with focused practice and targeted feedback.
If you want to explore variations of this theme for different age groups and settings, you may also review how the topic is introduced at earlier school stages to generate fresh examples for your essays: importance of financial literacy for children. Keep practising, share your essays in the comments, and use the checklists and vocabulary here to refine each new draft. Consistency—not perfection—is what lifts your band score.