SOURCES OF INCOME

Back to: Home Economics Primary 6

Good day guys, welcome to class

 

Meaning of Income

Income is the total amount of money that one gets from different sources during a period of time. Income include wages one is paid at work, plus the money one gets as gifts, investments, rents from their properties, among others. Income is more than the wages people earn.

Various Sources of Income

People get income from different sources. These include:

• Pocket money: It is the money given to a child to buy small things. It can be given weekly or monthly. The money should be spent wisely.
• Allowance: It is the money given to students/pupils by their parents or guardian for feeding. It is money needed for buying specific needs in the school. Husbands also give wives money as feeding allowance for the home. The husband could give the wife once a week, once a month, on a market day or daily.
• Gifts: It is money and other things given by visitors who come to greet us. Money given to us when we go on holidays or visit some friends or relatives. It is also money given to us to spend and buy things that we need or want.
• Money Earned from Odd Jobs: When we clean homes for people on weekends, help to baby sit, draw water for people, wash clothes and iron them as well as help others wash their cars, etc. we earn money. These jobs are referred to as odd jobs.

Principles of Wants and Needs

Our income is spent on desires or wants and needs.

• Needs: They are things we cannot do without. They include food, clothing, shelter and education.
• Wants: They are things we desire but are not compulsory. We can do without them. Examples of wants include bicycle, biscuits, sweets, television, among others.

It is important to note that the difference between wants and needs is that needs are essential items which the family require to survive on a daily basis while wants are not compulsory and the family can do without them.

 

Quiz

1. Define Income.
2. Mention three sources of income.
3. Differentiate between wants and needs.
4. State three examples of wants and needs.

Get more class notes, videos, homework help, exam practice on Android [DOWNLOAD]

Get more class notes, videos, homework help, exam practice on iPhone [DOWNLOAD]