Define money earned as income

Standards Alignment

• TEKS.MATH.1.09A primary
  define money earned as income;
• TEKS.MATH.1.09B primary
  identify income as a means of obtaining goods and services, oftentimes making choices between wants and needs;

Lesson Overview

This Grade 1 mathematics lesson introduces students to the concept of money earned as income and how income is used to obtain goods and services. Students will learn to define income and understand the choices between wants and needs that income allows. The lesson aligns with TEKS standards TEKS.MATH.1.09A and TEKS.MATH.1.09B and emphasizes personal financial literacy for lifetime financial security.

Learning Objectives

• Define money earned as income in their own words.
• Identify income as a way to get goods and services.
• Explain how income helps make choices between wants and needs.

Success Criteria

• Students can explain what income means.
• Students can give examples of how income is used to buy goods or services.
• Students can describe the difference between wants and needs when using income.

Prerequisite Knowledge

Students should understand the concept of money as a medium of exchange and recognize basic goods and services in their daily lives.

Key Vocabulary

• Income
• Money earned
• Goods
• Services
• Wants
• Needs

Materials and Resources

• Play money or real coins and bills
• Picture cards showing goods (e.g., toys, food) and services (e.g., haircut, bus ride)
• Chart paper or whiteboard
• Drawing paper and crayons

Teacher Preparation

• Prepare examples of goods and services with picture cards.
• Gather play money or coins for demonstration.
• Prepare a simple story or scenario involving earning money and making choices between wants and needs.

Detailed Lesson Notes

Definition of Income

Income is the money that people earn by working or doing jobs. It is the money you get that you can use to buy things you need or want. For example, when someone does chores or helps in a store, they might earn money. This money is called income.

Income as a Means to Obtain Goods and Services

Income allows people to get goods, which are things you can touch and use like food or toys, and services, which are activities done for you like a haircut or a bus ride. Income helps people decide what to buy because sometimes they have to choose between things they want and things they need.

Wants vs. Needs

Needs are things that are necessary to live, like food, clothes, and a place to live. Wants are things that are nice to have but not necessary, like toys or candy. When people use their income, they often have to choose between buying wants or needs because they may not have enough money for everything.

Using Concrete Models and Examples

Using play money and picture cards, teachers can show how income is earned and spent. For example, a student can pretend to earn money by doing a task and then use that money to 'buy' a picture card of a good or service. This helps students see the connection between earning income and making spending choices.

Common Misconceptions

Some students might think income is just money found or given freely, but it is money earned by working or providing something of value. Also, students may confuse wants and needs; it is important to clarify that needs are essential for living, while wants are extras.

Worked Examples

Classroom Activity

Students earn play money by completing a task and then select goods or services to purchase using the play money.

Guided Practice

Independent Practice

1. Foundational: What is income?
2. Developing: Name one thing you can get with income.
3. Application: If you earn $5 and want to buy a toy for $6 and a snack for $3, what can you buy?
4. Analysis: Why do people sometimes have to choose between wants and needs when they spend income?
5. Challenge: Explain how earning income helps people make choices about what to buy.

Independent Practice Teacher Answer Key

1. 1. Income is money that someone earns by working or doing a job.
2. 2. You can get goods like food or toys, or services like a haircut or bus ride.
3. 3. You can buy the snack for $3 but not the toy because you only have $5.
4. 4. Because income is limited, people cannot buy everything they want, so they must decide to buy things they need first before wants.
5. 5. Earning income gives people money to buy goods and services, but since income is limited, they have to decide what is most important to buy, choosing between wants and needs to manage their money wisely.

Guiding Questions

• What is income?
• How do people earn money?
• What can you buy with income?
• What is the difference between wants and needs?
• Why do we have to make choices when we spend money?

Common Misconceptions

• Income is sometimes thought to be money given freely, but it is money earned by working or providing value.
• Students may confuse wants and needs; needs are essential for living, while wants are extra items that are nice to have.

Differentiation

Assessment

• Observe students during role-play activities to check understanding of income and spending.
• Ask students to explain income and the difference between wants and needs during discussions.
• Draw a picture or write a sentence about how you earn money and what you can buy with it.
• Create a simple budget using play money to decide how to spend income on wants and needs.

Answer Guide

• What is income?
  Answer: Income is money earned by working or doing a job.
• Give an example of a good and a service you can get with income.
  Answer: A good could be food or toys; a service could be a haircut or a bus ride.
• Why do people have to choose between wants and needs?
  Answer: Because income is limited, people cannot buy everything, so they must choose what is most important.

Real-Life Application

Encourage students to talk with their family about how money is earned and used at home, and identify examples of wants and needs in their household.

Homework or Home Connection

• Encourage students to talk with their family about how money is earned and used at home, and identify examples of wants and needs in their household.

Lesson Summary

In this lesson, students learned that income is money earned by working or doing jobs. They explored how income is used to buy goods and services and recognized the difference between wants and needs. Through hands-on activities and discussions, students practiced making choices about spending income, building foundational skills in personal financial literacy.

Teacher Notes

Use the exact standards alignment and retrieved-source provenance stored with this enrichment.

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