How Do People Make Money?

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How Do People Make Money?. Discussion:. What are some ways that you have earned or made money?. Types of Income. Wage : Money that is given to someone in exchange for their work. Paycheck Do any of our examples fit into this category? If not, lets brainstorm!. Types of Income Cont. - PowerPoint PPT Presentation

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<ul><li><p>How Do People Make Money?</p></li><li><p>Discussion:What are some ways that you have earned or made money?</p></li><li><p>Types of IncomeWage: Money that is given to someone in exchange for their work. Paycheck</p><p>Do any of our examples fit into this category? If not, lets brainstorm!</p></li><li><p>Types of Income Cont.Rent:Money paid to a landlord by the tenant for use of their property.</p><p>Landlord: Person who owns the property that is being rented.</p><p>Tenant: Person who is renting the property (Renter).</p><p>Do any of our examples fit into this category? If not, lets brainstorm!</p></li><li><p>Types of Income Cont. Interest:Money earned because your money was borrowed or used.Savings Account </p><p>Do any of our examples fit into this category? If not, lets brainstorm!</p></li><li><p>Types of Income Cont.Profit:Income a person or company receives for their goods and services after the expenditures of a company have been subtracted. </p><p>Cash for product Expenses to make and sell the product = Profit </p><p>Do any of our examples fit into this category? If not, lets brainstorm!</p><p>Ask your students how they have made money. Have them be as specific as they want. Ex. Babysitting, birthday gifts, chores, allowance, savings account interest (some), etc.</p><p>Make a list of the different ways they have made money on the whiteboard. As we go through classifications of income on the next couple of slides you can refer back to them and see if they have examples of that type of income. If not, have them brainstorm what some might be. Examples will be available on each slide to assist you.</p><p>*When you discuss wages with the students try to give examples of how this is due to work or a service done. Explain that people can earn an hourly wage or a salary for their work. </p><p>If there are examples on your list then please mark them down as wages. If not please have them brainstorm some examples that could fit here: babysitting, mowing the lawn, allowance for chores, part time job, parents jobs etc.</p><p>*If there are examples on your list then please mark them down as rent. If not please have them brainstorm some examples that could fit here: Make sure they realize that they would need to own the property being rented in order for this to be a type of income. Try to have them brainstorm different things that would be rentable. Ex. Storage Garage, apartment, house, equipment from a rental place etc.</p><p>*Use the savings account as your example (Your students might have listed this in their list and that is ok, you will label it after this discussion). Explain that when you give your money to the bank to be put into a savings account that the bank will often reinvest that money into other accounts. They give you a portion of the money they earn from your money (the interest) back to you. This is generally a fixed percentage of the money you have in your savings account.</p><p>If they can have them brainstorm different ways to get interest and places that they pay interest. In these situations (where you pay interest) the person receiving the interest that you pay gets that income. Ex. Car Loan, College Loan, Credit Cards etc.</p><p>*Be sure to explain to the students that there are costs to selling or providing a good/service. There is the cost of producing the good and service, the time of the employees, building rent, equipment, marketing etc. All of these expenses must be subtracted from the companies total income before the profit, or the amount of money a company makes can be established. </p><p> Students will generally have to brainstorm these ideas. However some of them might have had this income listed on their list ex. Lemonade stand, craft sale, and then your bigger businesses like Target etc.*</p></li></ul>