UNIT 8FINANCIAL EDUCATION

KEY VOCABULARY

ExchangeProductServiceBarterCoinNoteMoneyValueBuySellCost

PART 1. MONEY

1.1. What is money?

1.2. Income: spending and saving

1.3. Purchasing strategies

1.4. A personal budget

Cash: coins and notes that people carry with them.

1.1. WHAT IS MONEY?Money is a means of payment that allows goods and services

to be exchanged.

There are several ways to pay for our purchases:

Bank card: a magnetic tool that allows us to pay without cash. The amount of the purchase is charged to a bank account.

Electronic payment: a payment transaction conducted over the Internet.

1.2. INCOME

INCOME is all the money we receive

How can we get income?

In exchange for work

For selling products and

services

When we get a loan from the

bank

From doing extra jobs

When we receive a gift in

the form of money

1.2. INCOME

INCOME is all the money we receive

How can we get income?

In exchange for work

For selling products

and servicesWhen we get a loan from the

bank

From doing extra jobs

When we receive a gift in the form of money

1.2. INCOMEWhat can we do with it?

• Expenses: money that is used to buy products and services.SPEND

• Saving: money reserved for a future need.SAVE

• Investment: money invested in something with the hope of making a profit.

INVEST

1.3.PURCHASING STRATEGIES

Can we buy everything we want?

Can we buy everything we need?

How can we earn money?

How can we save money?

What do you spend money on?

1.3. PURCHASING STRATEGIES

1.4. A PERSONAL BUDGETA personal budget helps us to manage our income and expenses and plan what we want to buy.* Page 133 n 6

PART 2. COMPANIES

2.1. What is a company?

2.2. Types of companies

2.3. Company organisation

What is a company?A company is an organisation that manufactures products (e.g. pencils, computers or cars) and/or provides services (cinema, amusement park, transport) in exchange for financial benefit.

Also, there are organisations whose main objective is not to obtain money, but to do something positive for society. For example: NGOs.

Companies need:- Material resources: raw materials and tools.- Human resources: employees- Financial resources: money

2.1. WHAT IS A COMPANY?

Types of companiesWe can classify companies according to different criteria.

1) According to their size, they can be:

2) According to the economic sector they are part of:

2.2. TYPES OF COMPANIES

NAME NUMBER OF EMPLOYEESMicroenterprises From 1 to 10 employeesSmall businesses From 10 to 50 employeesMedium-sized companies From 50 to 250 employeesLarge companies Over 250 employees

primary secondary tertiary

* Page 135 n 4

2.3. COMPANY ORGANISATION-Some small companies are owned and managed by a single person.-Larger companies are usually owned and managed by several people. These companies contain various departments:

DEPARTMENT DESCRIPTIONManagement They organise and coordinate different areas.Production They make the product or service.Marketing They promote the product or service.Sales They sell the product or service.Finance They deal with moneyHuman resources They organise and manage contracts for workers.

* Exercise: page 133 n 7

A GAMEIn which department do I work?

1. We need 3 new employees in our company. Today I have to interview 10 people.

2. We are preparing a TV commercial to show everybody our new invention.

3. Last year we saved 5.000.000€. We want to invest 2.000.000€ in new technological equipment.

4. First, we have to take these logs, cut them into thin pieces, add the graphite…

5. Everyday I have to deal with lots of customers. Today I have sold 300 sausages.

6. We have set up new objectives for this year. I have to talk with the representative of each department to communicate this information.