sources of income 1 income is money that you get. there are many ways that you can get money. you...

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Sources of income 1 Income is money that you get. There are many ways that you can get money. You might get pocket money or earn some money with a paper round or car washing. If you have a job you will be paid wages or a salary. A wage is paid every week. A salary is paid every month.

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Page 1: Sources of income 1 Income is money that you get. There are many ways that you can get money. You might get pocket money or earn some money with a paper

Sources of income 1Income is money that you get.

There are many ways that you can get money.

You might get pocket money or earn some money with apaper round or car washing.

If you have a job you will be paid wages or a salary.

A wage is paid every week.

A salary is paid every month.

Page 2: Sources of income 1 Income is money that you get. There are many ways that you can get money. You might get pocket money or earn some money with a paper

Sources of income 2If you don’t have a job, there are other ways of getting an income.Most of these are paid for by the government and include:

Disability Allowance

Jobseeker’s Allowance

Child Benefit

Working Families Tax Credit

State Pension

Income Support

Student Bursary

Discuss why you might receive each of these incomes.

Page 3: Sources of income 1 Income is money that you get. There are many ways that you can get money. You might get pocket money or earn some money with a paper

Sources of income 3Below is a description of a group of people who live in the samestreet in Inverness.

Can you say where some or all of their income comes from?

1. The Smiths have two young children under the age of 5.

2. Gary is a postman.

3. Sarah has lost her sight and has a guide dog.

4. Ann is 8 years old and is given £2 a week from her dad.

5. Peter is 68 years old and retired.

Page 4: Sources of income 1 Income is money that you get. There are many ways that you can get money. You might get pocket money or earn some money with a paper

Methods of payment 1

It is very likely that any income you get now is in the form of cash.

Cash is something that you would use to pay for things that are not too expensive.

Write down five things that you might pay for in cash.

Most people prefer not to carry too much cash on them.

Can you think of any reason why people might not like carrying toomuch cash?

There are many more ways to pay for things other than cash.

Page 5: Sources of income 1 Income is money that you get. There are many ways that you can get money. You might get pocket money or earn some money with a paper

Cash cards

If you have a job then it is likely that your wage or salary will be paid straight into your bank account.

When you first open your bank account, you will be sent a cash card with a four-digit number.

You need this number, called a PIN, when you want to take cash out of your bank.

You put your cash card into a cash machine and type in your PIN then select how much cash you need.

Page 6: Sources of income 1 Income is money that you get. There are many ways that you can get money. You might get pocket money or earn some money with a paper

Cheques

A cheque can be used to pay for things.

If you don’t have enough cash on you to payfor something, then you can write a chequefor the required amount as long as you havea cheque card to guarantee your cheque.

This is a way to make sure that the cheque book hasnot been stolen and that it is being used only by the personthat it belongs to.

Page 7: Sources of income 1 Income is money that you get. There are many ways that you can get money. You might get pocket money or earn some money with a paper

Credit cards

If you don’t have a cheque book, then you can use a credit card to pay for things.

There are many different credit cardsavailable and they are only a good way to pay for things if you can afford to pay the balancethat you owe at the end of the month, otherwise youpay back a lot more than you borrowed, depending on the interest that your credit card charges

Can you name any credit card companies?

Page 8: Sources of income 1 Income is money that you get. There are many ways that you can get money. You might get pocket money or earn some money with a paper

Mail order catalogue

If you can’t afford to pay for something all at once thenyou can pay it off over a period of time.

A mail order catalogue allows you to do this.

Usually you pay the amount off over 20 weeks and it doesn’t normally cost you any more than if you bought it in cash at the start.

This means that there is no interest charged.

Can you think of any mail order catalogues?

Page 9: Sources of income 1 Income is money that you get. There are many ways that you can get money. You might get pocket money or earn some money with a paper

Hire purchase

Another way of paying for something if you don’t have enough cash at the time is hire purchase (HP).

This is similar to buying from a catalogue.

To pay by HP, you pay a deposit first, followed by a payment everymonth until you have paid the balance in full.

Some places will charge you interest for paying in this way, but if the HP price is the same as the cash price then it is interest free.

A new bike!

Page 10: Sources of income 1 Income is money that you get. There are many ways that you can get money. You might get pocket money or earn some money with a paper

The post office

The post office can help you to pay for things.

If you want to send money to someone and don’t wantto risk putting cash in the post, you can buy a postal order from the post office.

The post office also provides a payment card.This is a card that you put as muchmoney onto as you can afford.You can then use it to pay for billssuch as gas, electricity, TV licence and phone.

Page 11: Sources of income 1 Income is money that you get. There are many ways that you can get money. You might get pocket money or earn some money with a paper

Methods of payment 2

Decide which method of payment would be suitablefor the following situations:

1. Julie wants to send her friend in England £20 for her birthday. She doesn’t want to send cash in the post and doesn’t have a cheque book. What could she use?

2. Matthew goes to his local newsagent to buy a paper and a bottle of water. What would he use to pay for it?

3. Mary has lots of Christmas presents to buy and doesn’t have enough cash to pay for them all at once. What could she use?

4. Barry has a problem with his heating at home. An engineer comes to fix it but Barry hasn’t got enough cash to pay him. What could he use instead?

Page 12: Sources of income 1 Income is money that you get. There are many ways that you can get money. You might get pocket money or earn some money with a paper

Money

Answer the following questions on money.

1. Claire has just lost her job as a hairdresser and hasn’t managedto find another job. What will her source of income be now?

2. Sean really needs a new pair of shoes. There is no cash machinenear the shop and he doesn’t have enough cash on him. What couldhe use?

3. Mike is a student and doesn’t have a job. What income could he have to help him as he studies?

4. Jim is buying a new fridge freezer but doesn’t have the £400 that it costs. He hopes that the shop can help him to make hispurchase. What could the shop offer him?

Page 13: Sources of income 1 Income is money that you get. There are many ways that you can get money. You might get pocket money or earn some money with a paper

Shopping 1

Calculate the cost of the following shopping lists.

1 carton of milk

2 kg apples

8 yoghurts

1 loaf of bread

2 cartons of fresh orange

2 pieces of salmon

1 kg apples

1 box corn flakes

2 kg potatoes

4 yoghurts

PricesApples: £1.46 per 1 kg Potatoes: £1.13 per 1 kgMilk: £2.25 Corn flakes: £1.69Salmon: £2.49 each Fresh orange: £0.85 eachYoghurt: £1.85 for 4 Bread: £1.25

1. 2.

Page 14: Sources of income 1 Income is money that you get. There are many ways that you can get money. You might get pocket money or earn some money with a paper

Shopping 2

Calculate the cost of the following shopping lists.

2 cans of deodorant

1 bottle of shampoo

2 kg grapes

1 banana

1 pack of mince

4 bananas

2 packs of mince

2 tins of beans

1 kg grapes

1 bottle shampoo

PricesDeodorant: £1.38 Beans: £0.85Shampoo: £2.65 Mince: £2.05Grapes: £1.20 per 1 kg Bananas: £0.16 each

3. 4.

Page 15: Sources of income 1 Income is money that you get. There are many ways that you can get money. You might get pocket money or earn some money with a paper

Budgeting 1

Budgeting is planning what your expenses are so that you have enough money to cover everything that you need.

In order to budget properly, you must make sure that themoney you spend is not more than the money you earn!

There are certain things that you must budget for first.Anything left over after you have paid for these thingscan be spent on anything you like.

The following list shows some things that would have to be budgetedfor first:

Gas and electricity bills, rent or mortgage, council tax, phone bill,TV licence, food, drink.

Can you think of any other things that would have to be paid for first?

Page 16: Sources of income 1 Income is money that you get. There are many ways that you can get money. You might get pocket money or earn some money with a paper

Budgeting 2

There are other things that you may feel are essential but whichcan’t all be paid for at once. In this case, you have to decide on which one is more important and get that one first. This is calledsetting priorities.

You may need to get a new jacket for the winter, but you alsoneed to have the latest game for the PS3 and you only have enoughmoney to pay for one of them.

Which one is more important?

Page 17: Sources of income 1 Income is money that you get. There are many ways that you can get money. You might get pocket money or earn some money with a paper

Budgeting grid 1A budgeting grid is a table that shows you how much moneyyou need to have in order to do everything you want.

By adding up all the money, you can see how much money you need.

Jim is given £15 a week. Here is his budgeting table.

Expense Cost

Bus to school

Lunch

Tuck

Swimming

Saving

£4.00

£5.75

£1.25

£1.00

£2.00

Total £15.00

Make up your own budgeting table.

Page 18: Sources of income 1 Income is money that you get. There are many ways that you can get money. You might get pocket money or earn some money with a paper

Budgeting grid 2Put the following information into a budgeting grid to find out howmuch money can be saved.

1. The Smiths’ income is £300 per week. Their rent is £80, shopping is £45, they spend £25 on travelling to work, £30 on gas and electricity, £50 on entertainment and the rest is saved.

2. Sammy is 17 and has a part-time job in a supermarket. He earns £95 per week and pays £20 digs, £5 on bus fares, £5 on lunch, £25 on leisure, £20 on driving lessons and the rest he is saving for a holiday.

In order to work out how much is saved, take away the expensesfrom the total income.

Page 19: Sources of income 1 Income is money that you get. There are many ways that you can get money. You might get pocket money or earn some money with a paper

Budgeting grid 3A budgeting grid can also be used for 2-, 3- and 4-week timeperiods. Here is a 3-week budgeting grid for the Smiths.

Week Rent Shopping Travel Leisure Saving Total

1 £80 £45 £25 £15 £300

2 £80 £50 £25 £65 £300

3 £80 £40 £40 £55 £300

Total £240 £135 £90 £135 £900

The Smiths earn £300 per week.Week 1 Rent £80, shopping £45, travel £25, leisure £15 Week 2 Rent £80, shopping £50, travel £25, leisure £65Week 3 Rent £80, shopping £40, travel £40, leisure £55

Complete the table in your workbook to find how much is saved eachweek and in total, by taking the expenses away from the total.

Page 20: Sources of income 1 Income is money that you get. There are many ways that you can get money. You might get pocket money or earn some money with a paper

Budgeting grid 4For the following situations, complete a budgeting table on yourworksheets.

1. Derek gets £65 a week. He spends:Week 1 £20 digs, £6 food, £20 going out, £10 travel Week 2 £20 digs, £10 food, £25 going out, £10 travelWeek 3 £20 digs, £6 food, £30 going out, £8 travelWeek 4 £20 digs, £7 food, £15 going out, £8 travel

2. Frances gets £105 a week. She spends:Week 1 £35 rent, £30 bills, £25 shopping, £10 going outWeek 2 £35 rent, £28 bills, £20 shopping, £12 going out

3. Angus earns £168 a week. He spends:Week 1 £45 rent, £40 car loan, £35 clothes, £30 going outWeek 2 £45 rent, £40 car loan, £30 clothes, £15 going outWeek 3 £45 rent, £40 car loan, £40 clothes, £30 going out

Page 21: Sources of income 1 Income is money that you get. There are many ways that you can get money. You might get pocket money or earn some money with a paper

Budgeting grid 5For the following situations, complete a budgeting table on yourworksheets.

1. Ray earns £124 a week. He spends:Week 1 £25 digs, £35 shopping, £28 going out, £5 travelWeek 2 £25 digs, £25 shopping, £12 going out, £10 travelWeek 3 £25 digs, £15 shopping, £35 going out, £10 travel

2. Dillon gets £15 a week. He spends:Week 1 £6 going out, £3 food, £2 swimmingWeek 2 £8 going out, £4 food, £2 swimming

3. Mick earns £200 a week. He spends:Week 1 £50 rent, £12 travel, £25 shopping, £35 billsWeek 2 £50 rent, £14 travel, £30 shopping, £20 billsWeek 3 £50 rent, £13 travel, £40 shopping, £24 billsWeek 4 £50 rent, £20 travel, £12 shopping, £12 bills