Section 2: Resources & Income

Learning Outcome

1.1 Review the personal resources available to them to realise their needs and wants and analyse the extent to which realising their needs and wants may impact on individuals and society.

1.2 Identify and classify sources of income and expenditure, compare options available to best manage financial resources, evaluating the risks associated with each option and making informed and responsible judgements.

Introduction

In this section students consider the various types of resources available to them, recognise that choices have to be made when they use these resources in order to meet their needs and wants and understand that these choices involve cost. They will also identify sources of income and be able to classify the different types of income.

Prior learning

Students should have an understanding of the difference between needs and wants (see Section 1).

Key learning

• Recognising what is a resource
• Identifying types of resources: personal, family and household
• Appreciate that many resources are scarce or limited
• Understand that choices have to be made in order to meet needs and wants
• Understand that choices involve costs – financial and opportunity costs
• Identifying sources of income
• Distinguishing between regular and irregular income
• Classifying income as regular or irregular

Activity

This activity will help students identify the types of resources that are available and how people have to make choices when using these resources to meet their needs and wants. Before you begin, facilitate a whole class discussion to develop an understanding of what is meant by the term “resources” and explain the definition if necessary (i.e. a useful or valuable possession or quality that a person has, for example, money, time or skills).

Money Sources

1. Explain to the class that they are going to think about their own sources of income, where their money comes from.
2. Divide the class into small groups.
3. Invite each group to discuss where the money in young people’s pockets might come from.
4. Distribute a flipchart sheet and markers to each group.
5. Invite the students to graphically represent the sources of money for young people, for example pie chart or bar chart etc. and consider the amount of total income that comes from various sources.
6. Ask each group to present their completed flipchart sheet to the class.

The focus in this activity should be the source of money for young people rather than the amount of money they are given or earn.

Depending on your class possible sources of income may include some of the following: parents, extended family/relations, part-time job, gifts, pocket money, babysitting, cutting grass, other household chores etc.

Students should examine some of their own needs and wants that were identified in Section 1 and evaluate how they might apply the resources available to them to meet these needs and wants by completing the worksheet below.

Remind students that the resources available to them aren’t just financial but can include things like time and skills. So, for example, if they needed to get a job would they have the experience and skills to get one? Once students have completed their worksheets individually conduct a whole class discussion so that they can share their answers.

Student Worksheet: Needs and Wants

Activity

This activity will help students identify the types of resources that are available and how people have to use their decision-making skills when using resources to meet their needs and wants.  Before you begin, facilitate a whole class discussion to develop an understanding of what is meant by the term ‘resources’ and explain the definition if necessary (i.e. a resource is something you use to reach a goal, for example money, time, energy, skills).

Ask students to read Michelle’s case study and distinguish between the different types of resources that she has at her disposal such as use of her time, regular and irregular types of income and savings. Identify some of the financial costs associated with these resources.

Case Study: Michelle

When this activity is completed provide feedback by facilitating a classroom discussion to identify the student’s answers and assess the factors that influenced their decisions.

Possible Assessment

Watch this clip from episode 6 of the CCPC sponsored TV show ‘How to be Good with Money’ and get the students to analyse the different sources of income shown and how this income is used to meet needs and wants

Discussion & Reflections

In the above we looked at different scenarios and examined the different types of resources and income that are available. We also identified some sources of income that might be available to young people and households. Is there anything that surprised you about the types of income that are available? How do you feel about the choices you have to make when using your resources to meet your needs and wants?

Section 2: Summary

Linking Learning Outcomes

The students’ engagement and learning are optimised by a fully integrated experience of learning in Business Studies.

Learning outcome;

• 1.1 links to 1.2, 1.3 and 3.1
• 1.2 links to 1.1, 1.3, 1.11, 1.12, 1.13, 2.10, 2.11, 2.12, 3.1, 3.2, 3.4, 3.10, 3.11