Studyfin
✨ Sign up free
Hi there! I'm Studyfin, and today we're going to explore how money works in our daily lives. Let's learn about the money we earn and how we choose to spend it!
Every day, people make choices about money. The money we receive is called income, and the money we spend is called an expense. Balancing these two is the secret to healthy saving!
Income is the money you earn or receive. This could be from doing a job, receiving an allowance for chores, or getting a cash gift for your birthday. Watch how income makes your piggy bank grow!
An expense is money you spend. When you buy a tasty snack, pay for a movie ticket, or purchase school supplies, money flows out of your wallet. We want to make sure our expenses aren't bigger than our income!
Maya earned $15 for washing her family's car (income). She then spent $6 on a new book (expense). How much money does Maya have left over to save?
- Identify the income: Maya earned $15, which is positive money (+ $15).
- Identify the expense: Maya spent $6, which is negative money (- $6).
- Set up your math equation: Income minus Expenses equals Savings (Leftover Money).
- Subtract the expense from the income: $15 - $6 = $9.
- Maya has $9 left over to put into her savings!
