Sources of Income
What is Income?
Money received by a person for work done or from other sources.
What is Tax?
Money paid to the government for public services.
What is a budget?
A plan for how to spend and save money.
What is an Exchange Rate?
The value of one country's money compared to another.
How many hours are in one day?
24 Hours
Name three (3) main sources of income.
Wages/Salaries, Business Profits, Remittances.
What is the difference between gross and net income?
Gross=before deductions
Net=after deductions
Why is budgeting important?
It helps people control spending and avoid debt.
What is the difference between sell rate and buy rate?
Sell rate=rate at which a bank sells foreign money to you.
Buy rate=rate at which a bank buys foreign currency from customers.
What is time management?
Planning how to use your time wisely.
What is the difference between a wage and a salary?
Wage=Paid by the hour
Salary=fixed yearly or monthly
Why do teachers pay taxes?
To support education, roads, and government services.
What does the equation "Income=Expenditure + Savings" mean?
Spending and saving must equal your income - no overspending.
Why are exchange rates important for families in Samoa?
They affect how much money families get from overseas.
What is money management?
Planning hoe to spend, save and use your money wisely.
What is commission?
A percentage of sales paid to workers.
E.g., Salespeople.
What does SNPF stands for?
Samoa National Provident Fund
What does a pie chart show in budgeting?
How income is divided among different expenses.
What are remittances?
Money sent home by family members working overseas.
Why should people record how they spend their money?
It helps track spending, avoid debt, and make better budgeting decisions.
Which type of income is most common in Samoa?
Wages, Salaries, and Remittances from family overseas.
What are 3 common deductions seen on a pay slip?
Tax, NPF, Loan Repayments.
Name 3 facts to remember about budgeting.
Set priorities, Plan savings, Make wise purchases.
How do remittances help Samoa's economy?
They provide income for families and increase spending in local businesses.
What is the difference between spending wisely and wasting money?
Spending wisely means buying what you need or what brings value, while wasting money means buying things you don’t need or can’t afford.