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.

Sources of income 2 If you dont have a job, there are other ways of getting an income. Most of these are paid for by the government and include: Disability Allowance Jobseekers Allowance Child Benefit Working Families Tax Credit State Pension Income Support Student Bursary Discuss why you might receive each of these incomes.

Sources of income 3 Below is a description of a group of people who live in the same street 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 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.

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

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.

Cheques A cheque can be used to pay for things. If you dont have enough cash on you to pay for something, then you can write a cheque for the required amount as long as you have a cheque card to guarantee your cheque. This is a way to make sure that the cheque book has not been stolen and that it is being used only by the person that it belongs to.

Credit cards If you dont have a cheque book, then you can use a credit card to pay for things. There are many different credit cards available and they are only a good way to pay for things if you can afford to pay the balance that you owe at the end of the month, otherwise you pay back a lot more than you borrowed, depending on the interest that your credit card charges Can you name any credit card companies?

Mail order catalogue If you cant afford to pay for something all at once then you 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 doesnt 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?

Hire purchase Another way of paying for something if you dont 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 every month 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!

The post office The post office can help you to pay for things. If you want to send money to someone and dont want to 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 much money onto as you can afford. You can then use it to pay for bills such as gas, electricity, TV licence and phone.

Methods of payment 2 Decide which method of payment would be suitable for the following situations: 1. Julie wants to send her friend in England £20 for her birthday. She doesnt want to send cash in the post and doesnt 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 doesnt 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 hasnt got enough cash to pay him. What could he use instead?

Money Answer the following questions on money. 1.Claire has just lost her job as a hairdresser and hasnt managed to find another job. What will her source of income be now? 2.Sean really needs a new pair of shoes. There is no cash machine nearthe shop and he doesnt have enough cash on him. What could he use? 3.Mike is a student and doesnt have a job. What income could he have to help him as he studies? 4.Jim is buying a new fridge freezer but doesnt have the £400 that it costs. He hopes that the shop can help him to make his purchase. What could the shop offer him?

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 Prices Apples: £1.46 per 1 kgPotatoes: £1.13 per 1 kg Milk: £2.25Corn flakes: £1.69 Salmon: £2.49 eachFresh orange: £0.85 each Yoghurt: £1.85 for 4Bread: £

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 Prices Deodorant: £1.38Beans: £0.85 Shampoo: £2.65Mince: £2.05 Grapes: £1.20 per 1 kgBananas: £0.16 each 3.4.

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 the money 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 things can be spent on anything you like. The following list shows some things that would have to be budgeted for 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?

Budgeting 2 There are other things that you may feel are essential but which cant 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 called setting priorities. You may need to get a new jacket for the winter, but you also need to have the latest game for the PS3 and you only have enough money to pay for one of them. Which one is more important?

Budgeting grid 1 A budgeting grid is a table that shows you how much money you 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. ExpenseCost 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.

Budgeting grid 2 Put the following information into a budgeting grid to find out how much 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 expenses from the total income.

Budgeting grid 3 A budgeting grid can also be used for 2-, 3- and 4-week time periods. Here is a 3-week budgeting grid for the Smiths. WeekRentShoppingTravelLeisureSavingTotal 1£80£45£25£15£300 2£80£50£25£65£300 3£80£40 £55£300 Total£240£135£90£135£900 The Smiths earn £300 per week. Week 1Rent £80, shopping £45, travel £25, leisure £15 Week 2 Rent £80, shopping £50, travel £25, leisure £65 Week 3 Rent £80, shopping £40, travel £40, leisure £55 Complete the table in your workbook to find how much is saved each week and in total, by taking the expenses away from the total.

Budgeting grid 4 For the following situations, complete a budgeting table on your worksheets. 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 travel Week 3 £20 digs, £6 food, £30 going out, £8 travel Week 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 out Week 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 out Week 2£45 rent, £40 car loan, £30 clothes, £15 going out Week 3£45 rent, £40 car loan, £40 clothes, £30 going out

Budgeting grid 5 For the following situations, complete a budgeting table on your worksheets. 1.Ray earns £124 a week. He spends: Week 1£25 digs, £35 shopping, £28 going out, £5 travel Week 2£25 digs, £25 shopping, £12 going out, £10 travel Week 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 swimming Week 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 bills Week 2£50 rent, £14 travel, £30 shopping, £20 bills Week 3£50 rent, £13 travel, £40 shopping, £24 bills Week 4£50 rent, £20 travel, £12 shopping, £12 bills