1. Money and Income

2. Money
Students will have an understanding of how money has evolved – the history
Students will have a knowledge of other countries currencies and understand that each country has their own currency
Students will have understanding of the money of NZ

3. Do Now – 3 mins
Students in groups of 4 list as many terms as they can for money

4. Do Now – ANSWERS
Dough, Cash, Bills, Bucks, Dosh, Moola, Smackeroos, Bread, Stash, Loot, Wads, Lucre, Clams, Quids, Greenbacks etc…
Highlight that money is something that we hear and talk about a lot, and so it is important to understand how it works so we can make it work for us, rather than against us.

5. Money is something that we hear and talk about a lot, and so it is important to understand how it works so we can make it work for us, rather than against us.

6. The History of Money

7. In the old days people lived in small family groups and were self-sufficient. What they produced (by hunting and gathering) they consumed themselves

8. When people began to live in small settlements, they began to specialise (produce only products they were good at making) and traded for what they did not produce.

9. Trading goods for other goods is known as BARTER.

10. Because of problems with barter, people began to introduce the first forms of money as a medium of exchange. Common items used were shells, beads, precious metals and even salt.

11. But to barter effectively you need to have a DOUBLE COINCIDENCE OF WANTS.
Eg: a person who wants to trade something must find a person to trade with who has what they want and wants what they have. This is time very time consuming!

12. The form of money that began to dominate ancient societies were precious metals, such as gold and silver. These had real value, were long lasting and could be broken down into smaller amounts.

13. Early forms of money A 640 BC one-third stater coin from Lydia.
Lydia no longer exists and is now part of Turkey
A 640 BC one-third stater coin from Lydia.

14. Metals were scarce, but large amounts were heavy
Metals were scarce, but large amounts were heavy. Instead of carrying around this type of money, people began to deposit their coins with goldsmiths (which turned into banks) and used IOUs (paper notes) which could be swapped for coins at other goldsmiths.

15. QUESTION: Which country issued the first PAPER NOTE?

16. The first paper money was issued by the Chinese Ming Government in The notes were called “Great Ming Precious Notes”.

17. DO NOW: What is the currency of the following countries (In Groups of 4)
Canada
Australia
Russia
England
France
South Africa
Japan
Finland
Hong Kong
China
Russia - Ruble
Sth Africa - Rand
Samoa - Tala

18. DO NOW: What is the currency of the following countries ANSWERS
Canada – Canadian Dollar
Australia – Australian Dollar
Russia – The Ruble
England – British Pound
France – The Euro
South Africa – The Rand
Japan – The Yen
Finland – The Euro
Hong Kong – The Hong Kong Dollar
China – The Renmenbi or Yuan
Russia - Ruble
Sth Africa - Rand
Samoa - Tala

19. In the 21st century there are new ways of accessing bank accounts
EFTPOS, phone and internet banking.
Electronic Funds Transfer at Point of Sale
QUICK QUIZ QUESTION – What does EFTPOS stand for?

20. QUICK QUIZ QUESTION ANSWER Electronic Funds Transfer at Point of Sale

21. In the future all forms of physical money may be obsolete, as technology enables us to use cards, cell phones and computers to access our bank accounts

22. QUIZ In groups of 4 How much do you know about NZ Money

23. 1. What is the smallest value coin in NZ?

24. 2. What is on the front of a NZ 50 cent coin?

25. 3. Whose picture is on the back of all NZ coins?

26. 4. In what year did NZ do away with 1 and 2 cent coins?
1985
1990
1995
2000

27. 5. Whose picture is on the front of the $50.00 note?

28. 6. What is on the front of the $2.00 coin?

29. 7. In what year did NZ do away with 5 cent coin?
2003
2004
2005
2006

30. 8. What colour is the NZ $10.00 note?

31. 9. Whose signature is on every NZ bank note?

32. 10. What bird is on the back of a $5.00 note?
Yellow Eyed Penguin (or Hoiho)

33. How much do you know about NZ Money ANSWERS Swap your answers with the group next to you

34. 1. What is the smallest value coin in NZ?

35. 2. What is on the front of a NZ 50 cent coin?

36. 3. Who is on the back of all NZ coins?

37. 4. In what year did NZ do away with 1 and 2 cent coins?
b) 1990

38. 5. Who is on the front of a $50.00 note
Sir Apirana Ngata

39. 6. What is on the front of the $2.00 coin?
Kotuku – White Heron

40. 7. In what year did NZ do away with 5 cent coin?

41. 8. What colour is the $10.00 note

42. 9. Whose signature is on every NZ bank note?
The Reserve Bank Governor OR Graeme Wheeler

43. 10. What bird is on the back of a $5.00 note?
Yellow Eyed Penguin (or Hoiho)

44. Income

45. Income
Students will have an understanding of the types of income people can earn
Students will understand the types of deductions from income
Students will have understanding of term deposits and cumulative interest.

46. What is income?
Income is money received from employment, investments, or interest from deposits.

47. Scenario – READ ONLY
Arishna and Bharvna are Year 10 students who have been friends since they were in primary school. Bharvna always knows when Arishna is worried about something. ‘What’s up Arishna?’ ‘I think I need to get a job. I need more money to do the things that I want to do and I probably should be saving some money too’. ‘Have you thought about the type of job you would like?’ Bharnva asked.
‘That’s the problem. I’m not really sure what job I want. There seem to be so many things to consider. How about you Bharvna, will you be looking for a job?’ ‘Not yet – I don’t have time. But there are many ways obtaining money’.
Brainstorm in groups the different ways of obtaining money – getting an income
Identify any gaps in their knowledge and suggest any alternative ways that have not been mentioned refer following slide

48. Brainstorming - ANSWERS
Salary = a regular fixed payment received each fortnight or month regardless of how many hours you work
Wage = a regular payment received based on the hours that you work
Commission = a payment received based on the level of sales obtained
Interest on investments = money you receive from the bank on a term deposit
Allowances = pocket money from your parents
Inheritance = money you receive from someone when they die (given to you in their will)
Winning LOTTO!

49. Not everyone gets the job of their dreams straight away!

50. What they did before they were famous
Brad Pitt used to dress up as a chicken for El Pollo Loco

51. Kanye West used to work at Gap
Kanye West used to work at Gap. Kanye actually rapped about it on his debut album, in the song "Spaceship"!

52. Madonna was a Dunkin' Donuts clerk

53. Hugh Jackman used to dress up as a clown for birthday parties.

54. You tube clip – How Bizzarre 12mins

55. In groups discuss the answers to the following questions
How much did Pauly Fuemana earn from the song “How Bizarre”?
How much did his manager make?
What did he do with all the money he made?
What does bankruptcy mean?
What mistakes do you think he made and what advise would you offer?

56. Exercise: A bit of math
If Pauly Fuemana put half of the money he earned from “How Bizarre” into a term deposit account for one 5% interest per annum – how much interest would the bank have given him?
1 x 5% p.a = $ ????
If he had left the money in the bank for 2 years how much interest would he have earnt.
3 years?
4 years?
How many years would it take for him to double his initial deposit of $2.5m to $5million?

57. Exercise Answer Refer excel spread sheet for calculations
How Bizarre came out in 1995 and if Pauly had of put half into the bank that year then by 2010 he would have doubled that initial amount to $5.197m

58. How much can I expect to earn when I leave school
How much can I expect to earn when I leave school? Calculate the following
Minimum wage for 16 years+ is $13.75 per hour x 40 hours per week x 52 weeks per year = ???? per annum (year)

59. Deductions from your Income

60. Think/Pair/Share:
What types of things can be deducted from your income before it is paid to you?

61. Think/Pair/Share: ANSWERS
What types of things can be deducted from your income before it is paid to you (other than income tax)? Income tax, Student loan, Child support, Kiwisaver
NB: if you earn less than $2240 per annum you do not have to pay any tax.

62. What is income tax?
If your income is from salary, wages or benefits, tax will automatically be deducted under the PAYE (pay as you earn) system.

63. Why do you have to pay income tax?
Taxes pay for government services such as education, health, infrastructure (roads, bridges), unemployment benefits etc..

64. Income Rates for tax year 2012-2013 – for every dollar you earn
Taxable income
Income tax (PAYE) rates
up to $14,000
12.20 cents
from $14,001 to $48,000
19.20 cents
from $48,001 to $70,000
31.70 cents
$70,001 and over
34.70 cents
No-notification of tax code
46.70 cents

65. What is Kiwisaver?
KiwiSaver is a voluntary work savings scheme set up by the government to encourage NZ’ers to save for their retirement.
If you're employed, you can choose to contribute 3%, 4% or 8% of your gross (before-tax) wage or salary to your KiwiSaver account.

66. Benefits of KiwiSaver
Your employer has to contribute at least 3% of your gross wage or salary into your KiwiSaver account. That’s on top of your own contributions.
Your KiwiSaver contributions come out of your pay before you see it. This makes saving easy.
The government gives you $1,000 when you open a kiwisaver account.
KiwiSaver savings can be used as a deposit subsidy on your first home purchase.

67. Winning Lotto. NZ Herald Article http://www. nzherald. co
Big winner Trevor has family problems
Students to read article and to discuss issues that arise from winning a large amount of money

68. You don't want to win the Lotto jackpot - here's why http://www. nbr
Winner: Michael Carrol Winnings: £9.7million Year: What went wrong: 26-year-old unemployed UK man blew fortune on drugs, gambling and "thousands of prostitutes." Wife left, taking child. Where is he now?: Back on the dole, taking home £42 per week.
Winner: Billie Bob Harrell Jr Winnings: $31 million Year: What went wrong: Texas lottery winner's spending and lending to friends, and fellow members of his church, got out of control. Strain then ruined his marriage. Where is he now?: Committed suicide 20 months after winning.

69. Winner: Abraham Shakespeare Winnings: $31 million Year: What went wrong: A woman who had befriended him - and fleeced him for $1.8 million, say police - has been charged in connection with his murder." Where is he now?: Found buried under a concrete slab.
Winner: Callie Rogers Winnings: £1.9million Year: What went wrong: Ms Rogers - 18 at the time of her win - spent the money on cocaine, breast implants, cars, gifts and holidays. Where is she now?: Broke, working as a maid. Attempted suicide twice.

70. How much can I expect to earn after 5 years working in the following industries? Calculate the following using the previous formula
Hotels and Restaurants - $16.20 per hour
Retail - $17.18 per hour
Arts and Leisure - $21.86 per hour
Construction - $23.31 per hour
Manufacturing - $23.70 per hour
Transportation - $24.10 per hour
Real Estate - $25.16 per hour
Mining of Forestry - $25.68 per hour
Technical or Science - $29.72 per hour
Education - $30.78 per hour
Telecommunications $32.47 per hour
Finance and Insurance - $35.37 per hour

71. Sending money home to the islands
Sending Money home video – 1.48mins

72. Sending money home comparison
Show the students the difference in fees between all the places that can transfer money overseas.