Grade 3 Lesson 5: Types of Income

Broadly, there are several different ways you can #earn or get #money. Some you have to work for, others your money does the work for you.

Most common types of income:

#Wages or #Salary: This is the income you earn from doing a #job. You may get paid an #hourlyrate to complete set tasks, or you may get a fixed amount set out in a #contract that is typically paid either weekly, fortnightly, or monthly

#Commission: Commission is when you earn money for finishing a mission or accomplishing a goal. Commission is based on outcomes/results instead of number of hours worked, or per what is stated in a contract.

#Interest: Interest is what your existing money earns for you (yay!). Interest is normally paid on money that you have deposited with your #bank. Interest varies between #account types and is generally expressed as a #percentage per year.

#Investments: Investments like #property, #shares and #artwork can all earn cash for you both via an increase in their price (this is known as #capital #growth) or in the case of shares, by means of paying you an amount of cash per share you hold (this is referred to as a #dividend).

#Gifts: Who doesn’t love a cash present? Birthdays and Christmas can be a great and sometimes unexpected #sourceofincome.

#Allowance/ #PocketMoney: Money your grown-ups give you on a regular basis. They may or may not expect you to do jobs in #return for the money given to you.

There are several other types of income that we will discuss in later lessons. The above are the most common ones

ayu ecosystem #kids #education

CLICK HERE to view all Short-lessons