EARN­ING, SPEND­ING / PRO­DUC­ING, CON­SUM­ING

The Hamilton Spectator - - SPORTS -

From beads to bank notes, money has changed a lot. Now that you know a lit­tle about the his­tory of money its time to learn about how to­day’s money makes the world go round. • How do most peo­ple get money? • What do peo­ple spend their money on? • Am I a con­sumer or pro­ducer? Read on to find an­swers to th­ese ques­tions and more.

Mak­ing Money (no not print­ing it, earn­ing it!)

When you were very young you may have thought that ev­ery­one could press some but­tons on an Au­to­mated Teller Ma­chine and money would pop out. The fact is, money does not grow on trees and money does not just pop out of an ATM au­to­mat­i­cally! Peo­ple need to earn money. If you are old enough you may have a part-time job, or you may have earned money rak­ing leaves, babysit­ting or de­liv­er­ing news­pa­pers. Money earned from all of th­ese ac­tiv­i­ties is called in­come. You can also earn in­come if you keep money in the bank or pur­chase some in­vest­ments that earn in­ter­est. Even $20 from your aunt on your birth­day can be called in­come. Most adults get their money by work­ing for it. A per­son who works for some­one else is an em­ployee. The com­pany or per­son that an em­ployee works for is the em­ployer. An em­ployer pays a salary or a fixed sum of money to its em­ploy­ees on a reg­u­lar ba­sis.

Good­byes or Good Buys?

Have you ever bought any­thing? Junk food? A pair of jeans? Mu­sic? Have you ever paid for a hair­cut or a bus ride? If so, you are a con­sumer – some­one who uses or con­sumes goods and ser­vices. A pro­ducer on the other hand is some­one who makes goods or pro­vides ser­vices. It is very easy to be a con­sumer but it takes some think­ing to be a smart con­sumer. To get the most for your dol­lar:

• Be aware and com­pare

That is, be­come a com­par­i­son

shop­per. Read la­bels, check in­gre­di­ents, and don’t be taken in by pack­age size – com­pare the amount of con­tents con­tained within the pack­ag­ing. At the gro­cery store check the shelf la­bels which will tell you how much a prod­uct costs per gram or litre. For big ticket items like elec­tron­ics and ap­pli­ances com­pare the war­ranty of­fered with each prod­uct. Some­times a prod­uct that costs more may be a bet­ter deal be­cause it comes with a bet­ter war­ranty. A war­ranty is a guar­an­tee that the com­pany who made the prod­uct or the busi­ness that sold it will fix or re­place the item if any­thing goes wrong within a cer­tain amount of time.

• Be­ware of mis­lead­ing ad­ver­tis­ing

Ad­ver­tise­ments ap­pear in news­pa­pers and mag­a­zines, on bill­boards and buses, on tele­vi­sion and on ra­dio, on street benches and be­fore movies or video streams. They are EV­ERY­WHERE! Al­though ads can be use­ful they can also be mis­lead­ing. For in­stance is that pic­ture of a ham­burger in the news­pa­per ad re­ally the size of the ham­burger you would pur­chase at the res­tau­rant ad­ver­tis­ing the food prod­uct? Is the claim made by a com­pany that, “Ev­ery­one is buy­ing their per­fume” re­ally true? Does the com­mer­cial or print ad use words like: “Part of...”“The taste of real...”“Nat­u­ral...”“New, bet­ter tast­ing ..... ” “Be­cause we care...”There are hun­dreds of th­ese de­cep­tive say­ings – be­ware! • Un­der­stand your needs and wants

This is another key point about be­ing a smart con­sumer. You need to be able to un­der­stand what is im­por­tant to you and why. What are the things that you ab­so­lutely can­not live with­out and what are the things that would be nice to have but are not re­quired for your sur­vival? Save, Spend, or Share? When you have money, the first choice you need to make is whether or not to spend it. How much you spend and how you spend it is up to you. Whether or not you save some and how much you save is also up to you - as is any de­ci­sion you might make about shar­ing some of your money. You might choose to share some of your money by spend­ing it on a birth­day gift for a friend, par­tic­i­pat­ing in a fundraiser or do­nat­ing some to a char­ity. The choices peo­ple make about money are very per­sonal. What one per­son deems is im­por­tant may not be as im­por­tant to another. Gen­er­ally though, peo­ple look to pay for their needs first then make de­ci­sions about spend­ing their money on wants and/ or shar­ing their money. You will learn more about this in the next in­stal­ment when we take a look at bud­get­ing!

News­pa­per Ac­tiv­i­ties

1. Con­sumers have many wants and needs. The things we must have to re­main healthy and safe are needs while other things that make life eas­ier or pro­vide en­joy­ment are wants. Look in your news­pa­per for pic­tures of five things that you would clas­sify as needs and five things you would clas­sify as wants. Post in a class­room dis­play and com­pare with those your class­mates col­lected. 2. Do you re­mem­ber read­ing about farm­ers, car­pen­ters, black­smiths, pot­ters, weavers and sim­i­lar trades peo­ple? Al­though some of those trades ex­ist to­day there are many more that didn’t ex­ist even 100 years ago or even 50 years ago. Was there such a thing as an air­line pi­lot in 1920? How about an as­tro­naut? Web de­sign­ers, soft­ware de­sign­ers and com­puter tech­ni­cians were jobs that did not ex­ist in 1965 – do you know why? Look in the help wanted ads in to­day’s pa­per and on Workopo­lis. What jobs are listed there? Which jobs might not ex­ist 20 years from now? 50 years from now? Dis­cuss as a class.

Fundrais­ing Plan

Speak­ing about jobs, spend­ing and shar­ing money, take some time to re­view the notes you recorded for your fundrais­ing plan ear­lier. Who will do what? Your task to­day is to as­sign jobs. Start by com­ing up with a list of jobs and what re­spon­si­bil­i­ties each of those jobs en­tail. For ex­am­ple: • Event Facilitators (run any games/events you plan to have) • Col­lec­tors (col­lect items needed for any of the games/

events you plan to have) • Set-up and Take-down crew (set up and take down all

ma­te­ri­als re­quired for games/events) • Dec­o­rat­ing/Sig­nage Team (cre­ate and put up any sig­nage

or dec­o­ra­tions re­quired at event(s) Then work back­wards from the sched­ule you cre­ated ear­lier to de­ter­mine dead­line dates for each job/task. Record th­ese on chart pa­per. (Note that each of you will also be part of the mar­ket­ing team that will be de­sign­ing a cam­paign to pro­mote your fundraiser but this will be ad­dressed in the next in­stall­ment of Money $1.01)

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