Income and Earning Topic

Income and Earning

Social Studies, Grade 3

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Study Guide Income and Earning Social Studies, Grade 3

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INCOME AND EARNING What is income? Income is money that people earn from working. It is also referred to as wages or salaries. What is earning? Earning is receiving money for work done or services performed. Earning is the act of getting the income for working. How do people earn money?  Some people make or grow goods. Farmers grow crops or livestock. Some people work in factories to make cars, or toothpaste, or telephones. Children make lemonade to sell in a lemonade stand. © Copyright NewPath Learning. All Rights Reserved. Permission is granted for the purchaser to print copies for non-commercial educational purposes only. Visit us at www.NewPathLearning.com.

 Some people perform services. Doctors and nurses give care to patients. Teachers help students learn. Policemen and firemen keep communities safe.  Some people invest in business stocks that they hope will bring them an income. Stocks are small shares of a company. The company sells shares to run its business. They pay dividends to stockowners Spending means using income to purchase goods and services. People buy things they need. They also buy things they want. Needs are the things we cannot live without such as food, clothing and shelter. Wants are the things we like to have but can live without. Savings are the amount of income that is not spent.  Some people put their savings in a place at home to use as needed  Some people put savings in banks. Banks pay them a small amount called interest to thank them for the use of their savings. Economics - the study of ways people spend money Budget - a plan that shows income, spending and savings Taxes- monies collected by a government to provide services to communities. (Sales tax, real estate tax, business profit tax) © Copyright NewPath Learning. All Rights Reserved. Permission is granted for the purchaser to print copies for non-commercial educational purposes only. Visit us at www.NewPathLearning.com.

Income tax - a percent of the money people earn is paid back to the government Sales tax - a percent of the cost of some goods is added to the price of an item Profit - income a producer has left after all costs of production are paid Costs of production - salaries to workers, goods needed to make more goods, maintenance of property such as electricity or heat, and taxes Economic choice - buying one thing, not another Employer - an owner of a business Employee - a worker at a business, sometimes called a laborer © Copyright NewPath Learning. All Rights Reserved. Permission is granted for the purchaser to print copies for non-commercial educational purposes only. Visit us at www.NewPathLearning.com.