Lesson 5: A Penny Saved is a Penny Earned...or Not!

Activity 5.1: Learn About What You Earn!

These gold coins represent the money that people earn from doing their jobs and can be considered a type of income. What you do with your income is one of the basic functions of economics.

Contrary to what many people think, there is more than one type of income! The American colonists were experts in earning money (a type of income) and wisely using their income. In this lesson you will learn about the different types of income and the different ways that income can be used.

Benchmark:

5.2.2.2.1: Describe various uses of income and discuss advantages and disadvantages of each.

Learning Target:

I can...describe the different types and uses of income.

Essential Question:

What are various uses of income and what are advantages and disadvantages of each type of income?

To complete Activity 5.1 please follow the steps below:

STEP 1: Read through the 3 Types of Income website and respond to the questions below.

1. What are the three different types of income?

2. Describe each of the three types of income?

3. What are some things that generate earned income?

4. What are the disadvantages of earned income?

5. What are the benefits (advantages) of earned income?

6. What are some things that generate portfolio income?

7. What are the disadvantages of portfolio income?

8. What are the benefits (advantages) of portfolio income?

9. What are some things that generate passive income?

10. What are the disadvantages of passive income?

11. What are the benefits (advantages) of passive income?

STEP 2: When complete submit ALL of your work in the ONLINE TEXT SUBMISSION BOX.