MONEY AND BUSINESS

Unit 4

1. How can we save and spend money?

Ways of saving

SAVING ACCOUNTS

You put your money into the account,

and the bank pays interest on it.

INVESTING MONEY

When you invest, you buy

something to sell it later for more

money (shares or bonds)

MONEY BOX

Yoy can put money into a money box

whenever you want.

Ways of spend money

CASHCREDIT CARDS

The bank lend us money and we pay it

back later. We pay interest to

the bank.

DEBIT CARDS

The money leaves our bank account

inmmediately.

2. How do we spend money?

We spend money on consumer products and services

Where do we spend money?- Town centres- Shopping centres- The Internet

HIGH ORDER PRODUCTS

-They have a high price (cars, houses, fridges, computers…)

-We don`t buy them regularly.

LOW ORDER PRODUCTS

-They have a lower price (food, drinks, medicines…)

-We buy them regularly.

3. What is a budget?

It`s the amount of money that we have to spend.

Examples: household budget, business budget

4. What types of companies are there?

SOLE TRADEROne person

owns and directshis or herCompany.

PARTNERSHIP

Two or more peopleown and direct thecompany together.

COOPERATIVE

All the people working in the company are

owners.

CORPORATIONIt is owned by the peoplewho have shares in the

company.