Section outline

  • Learning Intentions
    To be able to explain to peers basic vocabulary and concepts of finance and financial literacy
    To understand the importance of earning and wisely managing money

    Success Criteria
    I am aware of finance vocabulary and have some awareness of their meaning
    I can explain concepts of financially wise decisions, tax, etc 

    Student notes: Being ‘financially wise’ by Skylar, Alan, Maheep

    Prompts: difference between people who make good decisions about their money and those who make bad ones (good and bad habits - skills, attributes and actions of each type of person). What should you do with your money (savings, investments, spending)? Should you rent or buy a house? 

    What to do with your money?
    - A good habit is to pay all your bills immediately to boost your credit score.
    - You could use the 'envelope system' to track expenses (setting aside equal amounts of money into different categories). 
    - If you have money to spare, put it into an emergency fund, for your family, partner or yourself.
    - Save money for your future. If you don’t, you'll have to rely on credit in tough times or work in retirement. 
        Retiring may be delayed if you're in debt, because you need enough money to make all of your payments. 
     - Don't make major purchases on the spot. Being pressured into a hasty financial decision is not wise.
        All worthwhile opportunities will be there another day if you are patient. 

    Each 'Money Personality' has pros & cons:
    The Compulsive Saver: They store away money endlessly as money is the only way to feel secure in life. Friends often come to them for financial advice. 
     - Cons: does not have as many experiences and are probably introverts to unwatting to spend money
    - Pros: Has more money but does not spend it,  financially stable almost all the time

    The Compulsive Moneymaker: Believe that earning more money is the secret to happiness and spend most of their energy trying to make as much money as possible.
     - Cons: spend time making money so no time for other experiences, yourself, or your mental health.
     - Pros: you have a lot of money to spend or save and can buy your way to your idea of happiness

    The Gambler: Share traits with Money Makers & Spenders. The thrill of risk & promise of reward is a pleasure.
     - Cons: spend all money on the thrill or low chance of winning, financially unstable and live paycheck to paycheck.

    The Worrier: Lack confidence in own abilities to achieve financial freedom & obsess over the worst case scenario.
     - Pros: you live an average, financially stable, middle class life.
    - Cons: you never take risks so don't have many interesting experiences and worry about every small detail.

    The Investor: Invests in things that they hope will go up in value (eg shares)
    - Pros: Can secure money & make decisions in companies
     - Cons: Can lose a lot of money if they make a bad investment. 

    The Compulsive Spender: Spend money on things you don't need & have an outgoing personality and love treating people to something special.
         - Cons: you spend all your money, you have no money saved
     - Pros: you buy many extravagant experiences & items; may have lots of 'friends'


    Student notes The ‘Labour Market’ by Ken, Justin, Andre

    Prompts: How is the world of work changing? (part-time vs full time work, new types of job, quantity of low paid work and who does it, skills & qualifications needed by school leavers, distribution of income and wealth.

    The labour market is where you can find jobs you are excellent at eg if you love cooking you can make a cooking website, like how to cook or make recipes.

    A labour market is the place where workers and employees interact with each other. In the labour market, employers compete to hire the best, and workers compete for the best job. Services of human labour are bought and sold like other commodities.

    In the labour market there are many people competing to get jobs and some people are offering to get paid lower with the same amount of work and quality of work.

    Part-time vs Full time work.
    Part time workers have less working hours than a full time job.
    Precarious is another word for unsafe or insecure job. Nowadays, precarious work is happening a lot more. 


    Student notes Earning income - Alicia, Ahmed, Ram, Tarek

    Prompts: the main types of income, how they work with examples (eg commission, salary, wages) and types of job that receive each, advantages and disadvantages of each income type.

    Ways of making income
    - Online
    - Get a undergraduate job
    - Gamble 
    - Start your own business
    - Save money
    - Make money properly (By Working)
    - Become a trademe seller
    - Take paid online surveys
    - Start a Service Business
    - Become a freelance writer 
    - Start a service business  
    - Selling stuff you don’t use any more 
    - Baby sit 

    Different types of Income 

    Wages are money earned by the hour (more hours worked = more money). It can be unstable. 
    Salary is a yearly amount earned, paid weekly or fortnightly. It is a fixed and so secure form of income. 
    Commission is a percentage of the value of the item sold received.
    Interest When you put money in a bank account, you receive interest (eg 5%) as a 'thankyou' for using their bank.
    Investments
    Gifts 
    Allowance/Pocket Money 
    Government Payments

    Highly Paid Job examples

    Cardiologist - $351,827 a year.
    Anesthesiologist - $326,296 a year.
    Orthodontist - $264,850 a year.
    Psychiatrist - $224,577 a year.
    Surgeon - $216,248 a year.