Financial Literacy Lesson 1

Financial Literacy

Multiple Select

Which of these is a source of income?

• Inheritance

• Stock marketing – trading

• Payment for work

• Investments

Taxation

• Taxation is the means by which governments finance their expenditure by imposing charges on individuals and companies. The money raised is used to pay for the needs of the country. These charges are called taxes.

• The most common tax is called direct tax. An example of this is income tax, which is paid by individuals and companies on their earnings.

• People are required to pay a portion of their salary in tax to the government. Employers to deduct tax from employees’ pay and provide a pay slip as a record of the amount deducted. 

Its all about the money

• Forms of money

  Where do we get money from?

  What do we do with money once we’ve got it?

  Does everyone get to keep all of their money?

  
  

  
  

• What does MY money have to do with the Australian economy? 

What is an economy?

So where does financial literacy fit into this?

• Financial literacy is having the knowledge and skills to make good decisions about managing and using money.

  
  

• Financial literacy is a key skill in life and is imperative to the success of the Australian economy. It is important to understand all aspects of financial management and its application in the real world. Being financially literate allows you to manage your finances as you begin to earn money. This knowledge can be used in future to your advantage.  

Open Ended

Why is it important that people are aware of where their money comes from and where it is going?

Multiple Choice

Do we get to keep all the money we make?

• Yes

• No

Multiple Select

Where do we get our money from?

• Trees

• Working

• Investments

• It just appears in my bank account