Money and Income

1. Money and Income

2. Money • 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

3. Do Now – 3 mins Students in groups of 4 list as many terms as they can for money

4. Do Now – ANSWERS Dough, Cash, Bills, Bucks, Dosh, Moola, Smackeroos, Bread, Stash, Loot, Wads, Lucre, Clams, Quids, Greenbacks etc…

5. 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.

6. The History of Money

7. In the old days people lived in small family groups and were self-sufficient. What they produced (by hunting and gathering) they consumed themselves

8. 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.

9. Trading goods for other goods is known as BARTER.

10. 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.

11. But to barter effectively you need to have a DOUBLE COINCIDENCE OF WANTS. 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 consuming!

12. 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 amounts.

13. Early forms of money A 640 BC one-third stater coin from Lydia.

14. 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.

15. QUESTION:Which country issued the first PAPER NOTE?

16. The first paper money was issued by the Chinese Ming Government in 1374. The notes were called “Great Ming Precious Notes”.

17. DO NOW: What is the currency of the following countries (In Groups of 4) Canada Australia Russia England France South Africa Japan Finland Hong Kong China

18. DO NOW: What is the currency of the following countries ANSWERS Canada – Canadian Dollar Australia – Australian Dollar Russia – The Ruble England – British Pound France – The Euro South Africa – The Rand Japan – The Yen Finland – The Euro Hong Kong – The Hong Kong Dollar China – The Renmenbi or Yuan

19. In the 21st century there are new ways of accessing bank accounts EFTPOS, phone and internet banking. QUICK QUIZ QUESTION – What does EFTPOS stand for?

20. QUICK QUIZ QUESTION ANSWER Electronic Funds Transfer at Point of Sale

21. 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

22. QUIZ In groups of 4How much do you know about NZ Money

23. 1. What is the smallest value coin in NZ?

24. 2. What is on the front of a NZ 50 cent coin?

25. 3. Whose picture is on the back of all NZ coins?

26. 4. In what year did NZ do away with 1 and 2 cent coins? 1985 1990 1995 2000

27. 5. Whose picture is on the front of the $50.00 note?

28. 6. What is on the front of the $2.00 coin?

29. 7. In what year did NZ do away with 5 cent coin? 2003 2004 2005 2006

30. 8. What colour is the NZ $10.00 note?

31. 9. Whose signature is on every NZ bank note?

32. 10. What bird is on the back of a $5.00 note?

33. How much do you know about NZ Money ANSWERSSwap your answers with the group next to you

34. 1. What is the smallest value coin in NZ?

35. 2. What is on the front of a NZ 50 cent coin?

36. 3. Who is on the back of all NZ coins?

37. 4. In what year did NZ do away with 1 and 2 cent coins? b) 1990

38. 5. Who is on the front of a $50.00 note Sir ApiranaNgata

39. 6. What is on the front of the $2.00 coin? Kotuku – White Heron

40. 7. In what year did NZ do away with 5 cent coin? d) 2006

41. 8. What colour is the $10.00 note

42. 9. Whose signature is on every NZ bank note? The Reserve Bank Governor OR Graeme Wheeler

43. 10. What bird is on the back of a $5.00 note? Yellow Eyed Penguin (or Hoiho)

44. Income

45. Income • 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.

46. What is income? Income is money received from employment, investments, or interest from deposits.

47. Scenario – READ ONLY Arishnaand Bharvnaare Year 10 students who have been friends since they were in primary school. Bharvnaalways knows when Arishnais 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?’ Bharnvaasked. ‘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

48. 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!

49. Not everyone gets the job of their dreams straight away!

50. What they did before they were famous Brad Pitt used to dress up as a chicken for El Pollo Loco