CELPIP Reading for Viewpoints Making a Resolution
This Reading Module has 12 questions similar to the kinds of questions that you can expect to find on an actual CELPIP Test. Practice Celpip Test Reading for Viewpoints Making a Resolution
Directions: Read the following article.
Making a resolution to improve your finances puts you several steps closer along the road to a better bottom line, based on data from Fidelity Investments’ eighth annual “New Year Financial Resolutions Study.” Looking for a resolution that will pay off and pay dividends? Simply resolving to pay more attention to your finances improves the chances that your financial health will improve.
According to the Fidelity study, 45 percent of individuals who reported making financial resolutions at the start of 2016 were more debt-free at the end, compared with 34 percent of individuals who did not report making any financial resolutions within the past year. In addition, those who made financial resolutions were more likely to say they felt financially secure compared to those who didn’t make resolutions (45 percent vs. 34 percent).
The study also found that the three most popular financial resolutions for 2017 were saving more (50 percent), paying off debts (28 percent), and cutting back on spending (16 percent). Among individuals who went beyond making a resolution and actually followed through on it, 66 percent reported that they were “in a better financial situation.”
The potential for “unexpected expenses,” such as home repairs or medical bills, can derail financial security, but consumer education can help. “For those whose resolutions fell short in 2016, almost three quarters said they were derailed by unforeseen expenses, so setting aside an emergency fund can create a buffer,” says Ken Hevert, Fidelity’s senior vice president of retirement. Fidelity’s online guide, Three Financial Resources for 2017, can help consumers discover how small changes can add up to improve the family finances.
“Whether it’s a new roof for your home or a medical emergency, the unexpected can throw your finances for a loop,” Hevert explains. An especially smart tip from the guide that anyone can apply: switch to no-fee financial institutions instead of paying $43 in bank and credit card fees, and invest the money instead. After 20 years, with a hypothetical compound annual growth rate of 7 percent, you could be looking at a $22,000 windfall.
Visit fidelity.com for more information about how to improve your financial health in the new year.
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Directions: Answer the questions by choosing the best word or phrase to complete the sentence, referring to the article when necessary.
1. A medical emergency can ____.
a. drive you to save more money
b. discourage you from making further resolutions
c. bolster your investments.
d. put your finances in disarray
2. According to Fidelity ____.
a. people who made resolutions felt more secure
b. investments can fluctuate
c. people rarely follow through on their resolutions
d. resolutions have little impact on long-term financial health
3. Consumer education can help ____.
a. derail financial security
b. lead to unexpected expenses
c. a person prepare for unexpected expenses
d. help a person pay accumulate debt
4. Fidelity’s online guide ____.
a. warns of potential losses in the market
b. advises people to move their money to no-fee financial institutions
c. warns consumers of making bad resolutions
d. encourages people to seek investments that pay dividends
5. Saving $43 in bank fees could result in ____.
a. a net loss of $22,000 in 20 years
b. an income of $22,000 for 20 years
c. a profit of $22,000 in 20 years
d. an accrued debt of $22,000 in 20 years
Directions: The following is a response from a skeptical reader of the article.
I agree that paying attention to finances will improve a person’s financial health, but people ____. 6. (A. rarely have enough money to save. / B. rarely even think about their resolutions after making them. / C. usually delay gratification. / D. usually lose their investments to greedy bankers) It’s funny that the senior vice president uses a growth rate of 7% in his example. Since when has a Fidelity investment actually ____ ? 7. (A. lost money. / B. cost $43. / C. made anyone rich. / D. returned 7%) My grandpa had mutual funds with Fidelity and only averaged 3%. Sure, the individual investments in the fund might perform well, but after the ridiculous mutual fund fees, the final return is ____. 8. (A. always lower. / B. always higher. / C. always the same. / D. unpredictable) Hevert’s solution to a medical emergency is laughable. Does he really think a person will be able to prepare for an event like that by ____? 9. (A. making a resolution B. using Fidelity’s online guide C. saving $43 in banking fees. D. becoming debt free) Sure, maybe in 20 years if I break my toe, I’ll be able to pay for a doctor’s visit, but I definitely won’t be able to afford a major surgery. To me it seems like this article is just a ____. 10. (A. way to make people save money. / B. plug for making resolutions. / C. warning to prepare for a financial catastrophe. / D. marketing gimmick to attract more customers)
CELPIP Reading for Viewpoints Making a Resolution Answers
1. D – put your finances in disarray
2. A – people who made resolutions felt more secure
3. C – prepare for unexpected expenses
4. B – advises people to move their money to no-fee financial institutions
5. C – a profit of $22,000 in 20 years
6. B – rarely even think about their resolutions after making them
7. D – returned 7%
8. A – always lower
9. C – saving $43 in banking fees
10. D – marketing gimmick to attract more customers
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