Navigation
Learning how adults get money by doing work or having a job.
Imagine you want to buy a delicious ice cream cone, but your piggy bank is empty. How do grown-ups get the money they need to buy food, clothes, and even toys?
When adults go to work, they are trading their time and skills for money. This money is called income. Think of income like a reward for helping others or making things. If a person works at a store, the store owner pays them for their help. If a person builds a house, the person who wants the house pays them. Without income, it would be very hard to get the things we use every day! Most people get their income in a paper called a paycheck or as a digital deposit into a bank.
Quick Check
If you help a neighbor rake leaves and they pay you , what is that called?
Answer
It is called income.
There are many ways to earn an income. These are called jobs. Some people provide a service, which means they do something to help others. For example, a doctor helps you feel better, and a bus driver helps you get to school. Other people make goods, which are things you can touch and keep. A baker makes bread, and a toy maker makes dolls. Every job is important because it helps the community and allows the worker to earn money to take care of themselves.
1. A baker wakes up early to make fresh bread. 2. A customer comes in and buys a loaf of bread for . 3. At the end of the day, the baker has earned money from all the bread sold. 4. This money is the baker's income.
Quick Check
Is a teacher providing a service or making a good?
Answer
A teacher provides a service because they are helping you learn.
Why do we work so hard to earn an income? We use it to pay for our needs. Needs are things we must have to stay safe and healthy. This includes things like healthy food, a house or apartment to live in, and warm clothes for the winter. Sometimes, after we pay for all our needs, we might have a little bit of money left over for wants. Wants are things that are fun to have but we don't need to survive, like a new video game or a trip to the movies. Adults have to plan carefully to make sure their income covers their needs first!
Imagine Sarah earns an income of this week. She has to pay for her life: 1. She spends on groceries (a need). 2. She spends on her electricity bill (a need). 3. She calculates what is left: . 4. Sarah has left to save or spend on a want!
A worker earns in income. They have two choices: 1. Buy a new pair of work gloves for (a need to keep doing their job). 2. Buy a large bucket of popcorn and a movie ticket for (a want). 3. If they buy the movie ticket, they only have left. They cannot afford the gloves. They must choose the need first!
What is the definition of 'income'?
Which of these is a 'need' that someone might use their income to buy?
A person who fixes cars is providing a service to earn an income.
Review Tomorrow
In 24 hours, try to explain to a family member what the difference is between a 'need' and a 'want' when spending income.
Practice Activity
Draw a picture of a job you might want to have when you grow up. Write one sentence about how you would earn your income in that job!