Income, Gifts, Wants, and Needs
Some money is income. Some money is a gift. We can tell which is which.
• Income is money people earn when they work.
• A gift is money that someone gives. No one works to get a gift.
Did Kim work for it? No. Grandma gave it to her.
The money is a gift. It is not income.
If Kim rakes leaves for pay, that money is income.
We can tell wants from needs.
• A need is something people must have to live. Food, water, clothes, and a home are needs.• A want is something people like to have. They can live without it. Toys, bikes, and candy are wants.People use income to buy what they need. They use it to buy what they want too.
Milk is food. People need food to live. Milk is a need.
A teddy bear is a toy. People can live without toys. The teddy bear is a want.
Mom used her income to buy both. It paid for a need and a want.