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Students learn that people work to earn money to buy the things they need and want.
Have you ever wondered how a shiny new toy gets from the store shelf all the way into your toy box?
Everyone has needs and wants. A need is something you must have to stay alive, like water, healthy food, and a warm house. A want is something you would like to have, like a bouncy ball or a chocolate cupcake. To get these things, adults do jobs. A job is work that someone does to help others. When people finish their work, they earn income. Income is the money they receive for doing their job. Without jobs, it would be very hard to get the things our families need every day!
Quick Check
What is the name for the money people earn when they do a job?
Answer
Income.
Imagine if you had to trade a whole bicycle just to get one apple! That would be very difficult. That is why we use money. Money is a tool that makes trading easy. Instead of swapping items, we use coins and paper bills. We give money to a shopkeeper, and they give us goods (things we can touch) or services (help from others). If an apple costs $\$1\, you can make a fair trade. Money has a specific value that everyone agrees on, which helps the whole community get what they need.
1. You feel hungry and want an apple.
2. You see the apple costs $\$1\ in coins.
4. The cashier takes the money and gives you the apple.
5. You used money to trade for a good!
Quick Check
Is a toy car a 'good' or a 'service'?
Answer
A toy car is a good because it is an item you can touch and keep.
There are many different jobs in a community. A baker uses their skills to bake bread and cakes. A doctor uses their knowledge to help people feel better when they are sick. A bus driver helps people get from one place to another. Each of these people does a job to earn money. Then, they use that money to buy things from other workers. It is like a big circle of helping and trading!
1. Mr. Smith is a baker. He works for hours making bread.
2. The bakery owner pays him $\$108 \times \$10 = \$80\ to the grocery store to buy milk and eggs for his family.
1. Sarah has $\$5\.
3. She wants a giant sticker that costs $\$4\$2 + \$4 = \.
5. Since $\$6 > \, Sarah must choose. She buys the pencil (the need) and saves the rest of her money for later.
Why do most people go to work?
Which of these is a NEED?
Money is a tool that makes trading easier.
Review Tomorrow
Tomorrow, try to remember the difference between a 'need' and a 'want' when you look at things in your house.
Practice Activity
Ask a grown-up what their job is and one 'good' or 'service' they provide to the community!