Income - Money

Money and Income
• Students will have an understanding of
how money has evolved – the history
• Students will have a knowledge of other
countries currencies and understand that
each country has their own currency
• Students will have understanding of the
money of NZ
Do Now – 3 mins
Students in groups of 4 list as many terms as
they can for money
Dough, Cash, Bills, Bucks, Dosh, Moola,
Smackeroos, Bread, Stash, Loot, Wads,
Lucre, Clams, Quids, Greenbacks etc…
• Money is something that we hear and talk
about a lot, and so it is important to
understand how it works so we can make it
work for us, rather than against us.
The History of Money
In the old days people lived in small family groups and
were self-sufficient. What they produced (by hunting
and gathering) they consumed themselves
When people began to live in small settlements, they began
to specialise (produce only products they were good at
making) and traded for what they did not produce.
Trading goods
for other goods
is known as
Because of problems with barter, people began to
introduce the first forms of money as a medium of
exchange. Common items used were shells, beads,
precious metals and even salt.
But to barter effectively you need to have a DOUBLE
Eg: a person who wants to trade something must
find a person to trade with who has what they want
and wants what they have. This is time very time
The form of money
that began to
dominate ancient
societies were
precious metals, such
as gold and silver.
These had real value,
were long lasting and
could be broken
down into smaller
Early forms of money
A 640 BC one-third stater coin
from Lydia.
Metals were scarce, but large amounts were
heavy. Instead of carrying around this type of
money, people began to deposit their coins with
goldsmiths (which turned into banks) and used
IOUs (paper notes) which could be swapped for
coins at other goldsmiths.
Which country issued the first
The first paper
money was issued
by the Chinese
Ming Government
in 1374. The notes
were called “Great
Ming Precious
DO NOW: What is the currency of the
following countries (In Groups of 4)
6.South Africa
9.Hong Kong
DO NOW: What is the currency of the
following countries ANSWERS
1.Canada – Canadian Dollar
2.Australia – Australian Dollar
3.Russia – The Ruble
4.England – British Pound
5.France – The Euro
6.South Africa – The Rand
7.Japan – The Yen
8.Finland – The Euro
9.Hong Kong – The Hong Kong Dollar
10.China – The Renmenbi or Yuan
In the 21st century
there are new ways
of accessing bank
EFTPOS, phone
and internet
EFTPOS stand for?
Electronic Funds Transfer at Point of
In the future all forms of physical money
may be obsolete, as technology enables us to
use cards, cell phones and computers to
access our bank accounts
QUIZ In groups of 4
How much do you know
about NZ Money
1. What is the
smallest value coin
in NZ?
2. What is on the front
of a NZ 50 cent coin?
3. Whose picture is on
the back of all NZ coins?
4. In what year did NZ
do away with 1 and 2
cent coins?
5. Whose picture is on
the front of the $50.00
6. What is on the front
of the $2.00 coin?
7. In what year did NZ
do away with 5 cent
8. What colour is the
NZ $10.00 note?
9. Whose signature is on
every NZ bank note?
10. What bird is on the
back of a $5.00 note?
How much do you know about
Swap your answers with the
group next to you
1. What is the smallest value coin in NZ?
2. What is on the front of a NZ
50 cent coin?
3. Who is on the back of all NZ coins?
4. In what year did NZ do
away with 1 and 2 cent coins?
b) 1990
5. Who is on the front of a $50.00
Sir Apirana Ngata
6. What is on the front of the $2.00
Kotuku – White Heron
7. In what year did NZ do away
with 5 cent coin?
d) 2006
8. What colour is the $10.00 note
9. Whose signature is on every NZ
bank note?
The Reserve Bank Governor
OR Graeme Wheeler
10. What bird is on the back of a
$5.00 note?
Yellow Eyed Penguin (or Hoiho)
• Students will have an understanding of
the types of income people can earn
• Students will understand the types of
deductions from income
• Students will have understanding of term
deposits and cumulative interest.
What is income?
Income is money received from employment,
investments, or interest from deposits.
Scenario – READ ONLY
Arishna and Bharvna are Year 10 students who have been
friends since they were in primary school. Bharvna always
knows when Arishna is worried about something. ‘What’s up
Arishna?’ ‘I think I need to get a job. I need more money to do
the things that I want to do and I probably should be saving
some money too’. ‘Have you thought about the type of job you
would like?’ Bharnva asked.
‘That’s the problem. I’m not really sure what job I want. There
seem to be so many things to consider. How about you Bharvna,
will you be looking for a job?’ ‘Not yet – I don’t have time. But
there are many ways obtaining money’.
Brainstorm in groups the different ways of
obtaining money – getting an income
Brainstorming - ANSWERS
Salary = a regular fixed payment received each
fortnight or month regardless of how many hours
you work
Wage = a regular payment received based on the
hours that you work
Commission = a payment received based on the
level of sales obtained
Interest on investments = money you receive
from the bank on a term deposit
Allowances = pocket money from your parents
Inheritance = money you receive from someone
when they die (given to you in their will)
Winning LOTTO!
Not everyone gets the job of
their dreams straight away!
What they did before they were famous
Brad Pitt used to dress up as a chicken
for El Pollo Loco
Kanye West used to work at Gap.
Kanye actually rapped about it on his
debut album, in the song "Spaceship"!
Madonna was a Dunkin' Donuts
Hugh Jackman used to dress up
as a clown for birthday parties.
You tube clip – How Bizzarre 12mins
In groups discuss the answers to the
following questions
1. How much did Pauly Fuemana earn from the
song “How Bizarre”?
2. How much did his manager make?
3. What did he do with all the money he made?
4. What does bankruptcy mean?
5. What mistakes do you think he made and what
advise would you offer?
Exercise: A bit of math
If Pauly Fuemana put half of the money he earned
from “How Bizarre” into a term deposit account for
one year @ 5% interest per annum – how much
interest would the bank have given him?
1 x year @ 5% p.a = $ ????
If he had left the money in the bank for 2 years how
much interest would he have earnt.
3 years?
4 years?
How many years would it take for him to double his
initial deposit of $2.5m to $5million?
Exercise Answer
• Refer excel spread sheet for calculations
• How Bizarre came out in 1995 and if Pauly had of
put half into the bank that year then by 2010 he
would have doubled that initial amount to
How much can I expect to earn when I
leave school?
Calculate the following
Minimum wage for 16 years+ is $13.75 per hour x 40
hours per week x 52 weeks per year = ???? per
annum (year)
Deductions from your Income
• What types of things can be deducted from your
income before it is paid to you?
Think/Pair/Share: ANSWERS
What types of things can be deducted from your
income before it is paid to you (other than income
tax)? Income tax, Student loan, Child support,
NB: if you earn less than $2240 per annum
you do not have to pay any tax.
What is income tax?
If your income is from salary,
wages or benefits, tax will
automatically be deducted under
the PAYE (pay as you earn)
Why do you have to pay income tax?
Taxes pay for government services such as
education, health, infrastructure (roads, bridges),
unemployment benefits etc..
Income Rates for tax year 20122013 – for every dollar you earn
Taxable income
Income tax (PAYE) rates
up to $14,000
12.20 cents
from $14,001 to $48,000
19.20 cents
from $48,001 to $70,000
31.70 cents
$70,001 and over
34.70 cents
No-notification of tax code
46.70 cents
What is Kiwisaver?
KiwiSaver is a voluntary work savings scheme set
up by the government to encourage NZ’ers to save
for their retirement.
If you're employed, you can choose to contribute
3%, 4% or 8% of your gross (before-tax) wage or
salary to your KiwiSaver account.
Benefits of KiwiSaver
• Your employer has to contribute at least 3% of your
gross wage or salary into your KiwiSaver account.
That’s on top of your own contributions.
• Your KiwiSaver contributions come out of your pay
before you see it. This makes saving easy.
• The government gives you $1,000 when you open a
kiwisaver account.
• KiwiSaver savings can be used as a deposit subsidy
on your first home purchase.
Winning Lotto! NZ Herald Article
Big winner Trevor has family problems
Students to read article and to discuss issues that
arise from winning a large amount of money
You don't want to win the Lotto
jackpot - here's why
Winner: Michael Carrol
Winnings: £9.7million
Year: 2002
What went wrong: 26-year-old unemployed UK man blew fortune
on drugs, gambling and "thousands of prostitutes." Wife left, taking
Where is he now?: Back on the dole, taking home £42 per week.
Winner: Billie Bob Harrell Jr
Winnings: $31 million
Year: 1997
What went wrong: Texas lottery winner's spending and lending to
friends, and fellow members of his church, got out of control. Strain
then ruined his marriage.
Where is he now?: Committed suicide 20 months after winning.
Winner: Abraham Shakespeare
Winnings: $31 million
Year: 2006
What went wrong: A woman who had
befriended him - and fleeced him for $1.8 million,
say police - has been charged in connection with
his murder."
Where is he now?: Found buried under a
concrete slab.
Winner: Callie Rogers
Winnings: £1.9million
Year: 2002
What went wrong: Ms Rogers - 18 at the time
of her win - spent the money on cocaine, breast
implants, cars, gifts and holidays.
Where is she now?: Broke, working as a maid.
Attempted suicide twice.
How much can I expect to earn after 5 years
working in the following industries?
Calculate the following using the previous formula
Hotels and Restaurants - $16.20 per hour
Retail - $17.18 per hour
Arts and Leisure - $21.86 per hour
Construction - $23.31 per hour
Manufacturing - $23.70 per hour
Transportation - $24.10 per hour
Real Estate - $25.16 per hour
Mining of Forestry - $25.68 per hour
Technical or Science - $29.72 per hour
Education - $30.78 per hour
Telecommunications $32.47 per hour
Finance and Insurance - $35.37 per hour
Sending money home to the islands
Sending Money home video – 1.48mins
Sending money home comparison
• Show the students the difference in fees between
all the places that can transfer money overseas.

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