What Can You Do with Money?: Earning, Spending, and Saving (Lightning Bolt Books - Exploring Economics)

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Jennifer S. Larson

s

Lerner Publications Company Minneapolis

h a i a s I For

Copyright

© 2010 by Lerner Publishing Group, Inc.

All rights reserved. International copyright secured. No part of this book may be reproduced, stored in a retrieval system, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise —without the prior written permission of Lerner Publishing Group, Inc., except for the inclusion of brief quotations in an acknowledged review. Lerner Publications Company A division of Lerner Publishing Group, Inc. 241 First Avenue North Minneapolis, MN 55401 U.S.A. Website address: www.lernerbooks.com

Library of Congress Cataloging-in-Publication Data Larson, Jennifer S., 1967– What can you do with money?: earning, spending, and saving / by Jennifer S. Larson. p. cm. — (Lightning bolt booksTM— Exploring economics) Includes index. ISBN 978–0–7613–3910–6 (lib. bdg. : alk. paper)  1. Wages—Juvenile TOâ•‹COMEliterature. 2. Income— Juvenile literature. 3. Consumption (Economics)— Juvenile literature. I. Title. HD4909.L25 2010 331.2’1—dc22 2009027468 Manufactured in the United States of America 1 — BP — 12/15/09

eISBN 978-0-7613-5953-1

Contents Earning Money

page

4

Goods and Services

page

6

Many Kinds of obs

Making Choices

page

12

page

18

Spending Money

page

22

Activities page

28

Glossary Further Reading Index page

30

page

31

page

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Earning Money Have you ever sold lemonade or cookies? Did you make some money? When someone works at a paid job, he or she earns money.

4

This money is called income.

This man is working. The income he earns at work may also be called wages.

People trade the work they do for income.

5

Goods and Services People use their income to buy goods and services. Goods

are the things we eat, wear, and use. A good is something you can touch.

6

A cookie is a good.

Services are work done by people for others. Selling cookies to someone is a service.

7

Do you like to make things? When you make something, you create a good. This boy made a sea life scene.

8

Many people have jobs making goods.

These people are painting pottery. Pottery is a good.

9

Do you like to help other people? When you do something for someone else, that’s a service.

Babysitting is a service.

10

Many people have jobs providing a service.

Your teacher provides a service—teaching you!

11

Many Kinds of obs How many workers does it take to make a carton of strawberries? A lot! Farmers grow the strawberries.

12

Workers pick the strawberries. Then train and truck drivers deliver the fruit to a factory.

13

Factory workers sort the strawberries. Next, they put them in packages. Grocery store workers put the packages on display in the store.

14

A checkout clerk sells the strawberries to your family.

All of these workers earn wages.

15

People don’t always earn money for their work.

s . id e m e ov h o at

o m or m r u o Y da g o o d s a n d se rv d pr ice s

16

Dinner is a good . Washing the dishes is a service !

17

Making Choices Each family chooses how to use its income. First, a family spends money on the goods and services it needs. Food is a good we need.

18

This woman is making a budget. A budget helps a family figure out how to use its income.

Ca r e f r

om

a se a d o c t o r is r vi ce w e n ee d .

19

Is there any money left after the family pays for its needs? If so, the family might decide to donate money. That means they give money to someone else who needs it.

20

The family might also choose to save some money. You can save money in a piggy bank or a jar. A bank is another place to save your money.

21

Spending Money A family could decide to spend their extra money on something they want. A ski trip is a want. A kitchen table is a want. They may have to choose between the vacation and the table.

22

This family is buying a new bed.

We see things to buy almost everywhere. We can buy toys, an apple, or a ride on a roller coaster. How do we decide? 23

Think carefully about your choices. Is there something you’d like to buy? Is it worth spending your money on?

Or should you save your money?

Would you buy this giraffe? Or would you save to buy a different toy?

24

If you save, you might be able to buy something better later on. You can make a list of what you’d like! 25

t e a g n s a ll o d i k w e an m o you ? D o c S e. An allowance is money that adults in some families regularly give to the kids.

26

Or maybe you earn wages doing chores for a neighbor. What will you do with your money?

27

Activities

Wants and Needs Look at the pictures below. Which ones are needs? Which ones are wants? Write your answers on a separate sheet of paper.

28

Save or Spend? You just got ten dollars for your birthday! Should you save it or buy a toy? Make a list. What are some good reasons for saving? For spending? Here is a sample list to get you started. My Money? h it w o D I ld u o What Sh



Save

de o ga m e I ca n bu y a vi la te r.

sa ve m on ey. I’m le ar ni ng to ha ve to o M om th in ks I m an y to ys . e m on ey to I w ill ha ve m or ti on . sp en d on va ca

Buy a toy



th e to y. I re al ly w an t so m et hi ng fu n I w an t to bu y ay m on ey. w it h m y bi rt hd

ie nd s ha ve So m e of m y fr lo ok s re al ly it d th is to y, an fu n. la st a lo ng T he to y w ill ill pl ay w it h ti m e, an d I w it a lo t.

29

Glossary allowance: money that adults in some families regularly give to the kids

donate: to give money to someone who needs it earn: to get money for work done good: a thing you can touch that can be bought and sold

income: money a person earns or receives need: goods and services people must have to live save: to keep money for later service: work done by people for others wages: money a person makes for working at a job

want: goods and services people do not need to live

30

Further Reading Bair, Sheila. Isabel’s Car Wash. Morton Grove, IL: Albert Whitman & Company, 2008. Enchanted Learning: Budget http://www.enchantedlearning. com/economics/budget Hill, Mary. Spending and Saving. New York: Children’s Press, 2005. Larson, Jennifer S. Do I Need It? Or Do I Want It?: Making Budget Choices. Minneapolis: Lerner Publications Company, 2010. Nelson, Robin. What Do We Buy?: A Look at Goods and Services. Minneapolis: Lerner Publications Company, 2010.

31 31

Index allowance, 26

needs, 18–20, 28

donate, 20

saving, 21, 24–25, 29 services, 7, 10–11, 16–19 spending, 18, 22–24, 29

earning, 4–5, 15–16, 27 goods, 6, 8–9, 16–18

wages, 5, 15, 27 wants, 22, 28

income, 5–6, 18 jobs, 4–5, 9, 11–15

Photo Acknowledgments The images in this book are used with the permission of: © Todd Strand/Independent Picture Service, pp. 2, 4, 7, 10; © iStockphoto.com/redmal, p. 5; © iStockphoto.com/ Kativ, p. 6; © iStockphoto.com/Donna Coleman, p. 8; © Poppy Betty/CORBIS, p. 9; Yellow Dog Production/Digital Vision/Getty Images. P 11; © Karen Kasmauski/CORBIS, p. 12; © Ed Kashi/CORBIS, p. 13; © Chris Sattlberger/The Image Bank/Getty Images, p. 14; © Jack Hollingsworth/Photodisc/Getty Images, p. 15; © Pascal BRONZE/ONOKY/ Getty Images, p. 16; © Gary John Norman/The Image Bank/Getty Images, p. 17; ©Cathy Yeulet/Glowimages.com, p. 18; © Bambu Productions/Iconica/Getty Images, p. 19; © Christopher Griffin/StockphotoPro.com, p. 20; © David Fischer/Photographers Chioce RF/Getty Images, p. 21; © iStockphoto.com/kristian sekulic, p. 22; Reflexstock/ © Juice Images, p. 23; Reflexstock/Corbis RF/© Tim Pannell, p. 24; © Julie Caruso, p. 25; © Jacobs Stock Photography/Digital Vision/Getty Images, p. 26; © Julie Caruso/ Independent Picture Service, p. 27; © iStockphoto.com/Mark Evans, p. 28 (robot); © iStockphoto.com/Photographer, p. 28 (skateboard); © iStockphoto.com/redmonkey8, p. 28 (chocolate bar); © matka Waraitka/Shutterstock Images, p. 28 (shoes); © Guido Oesterlein/Shutterstock Images, p. 28 (apple); © Jose AS Reyes/Shutterstock Images, p. 28 (bed); © Brie Cohen/Independent Picture Service, p. 29; © iStockphoto.com/ Edyta Pawtowska, p. 30, © iStockphoto.com/Nicky Gordon, p. 31. Front cover: © Todd Strand/Independent Picture Service.

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Do you get an allowance? Or have you ever been paid for doing chores? If so, you’ve earned money! Everyone has to decide what they will do with the money they earn. Will they spend it on things they want and need? Or will they save it? How can you decide what to do with your money? Read this book to find out.

TM

Learn all about how we earn, spend, and save in the Explorin g Economics series—part of the Lightning Bolt BooksTM collection. With high-energy designs, exciting photos, and fun text, Lightning Bolt BooksTM bring nonfiction topics to life!

Exploring Economics Do I Need It? Or Do I Want It?: Making Budget Choices What Can You Do with Money?: Earning, Spending, and Saving What Do We Buy?: A Look at Goods and Services What Is Money, Anyway?: Why Dollars and Coins Have Value Where Do We Keep Money?: How Banks Work Who’s Buying? Who’s Selling?: Understanding Consumers and Producers