Money Doesn't Grow on Trees

Have you ever heard someone say "Money doesn't grow on trees." Usually it comes as a reply to someone always asking for money. Money is a common medium of economic exchange. We use money to buy the goods and services we need. But how do we acquire the money we need to do that? You may be lucky and win a large amount of money or someone might give you some as a gift but most people get their money by working for it. The money people earn is called an income. Having a job that pays you money on a regular basis can be a really important way of acquiring the income you need to purchase the goods and services you want to have.There are two basic ways to earn money. One way is to make or gather something that others are willing to buy. This is called a good. The other way is to do work that others are willing to pay you to do. This work is called a service. Maybe your family gives you money for doing household chores like washing the dishes or feeding a pet.What do you do with the money you earn? Do you spend it or do you save it?  Let's say you want to make your money grow. You might put it in a money box, deposit it in a bank or invest it. Successful savings depends on three elements: setting a goal; creating a place to put savings; making saving money a habit.

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If you deposit your money into a savings account with a bank, the compound or simple interest you are paid helps your money grow. The interest is the amount of money that is calculated on a percentage of your savings. Practise calculating interest by doing some exercises .

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QUIZ ANSWERS

1. A severe cold weather event

2. St George

3.New York Giants



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