Business Studies · 3rd Year · Personal Finance · Summer Term

Managing My Money: Income and Expenditure

Learn to identify different sources of income and track your spending. Understand the difference between essential needs and optional wants to make smarter financial choices.

TL;DR:We all handle money, but do we really know where it comes from and where it goes? This topic turns students into financial detectives, uncovering their own spending habits.

• NCCA Curriculum Specifications
• Junior Cycle Business Studies Specification: Personal Finance Strand, LO 1.1, 1.2

About This Topic

This topic, 'Managing My Money: Income and Expenditure', is a cornerstone of the Personal Finance strand within the Junior Cycle Business Studies specification. It provides foundational knowledge that is essential for students as they begin to navigate their own financial lives. The focus is on practical, real-world skills, aligning with the Junior Cycle's emphasis on wellbeing and preparing students for life beyond the classroom. By getting to grips with the core concepts of where money comes from (income) and where it goes (expenditure), students are empowered to make more conscious financial decisions. The distinction between needs and wants is a critical element, encouraging students to think critically about consumerism and prioritisation. This topic serves as a crucial stepping stone to more complex financial literacy concepts they will encounter later, such as budgeting, saving for long-term goals, understanding credit, and the importance of financial responsibility. The skills developed here are not just academic; they are life skills that contribute to a student's ability to manage their resources effectively and plan for their future.

Key Questions

1. Identify the various sources of income available to an individual.
2. Explain the difference between a 'need' and a 'want' using personal examples.
3. Analyse a personal spending diary to identify patterns and areas for potential savings.

Learning Objectives

• Identify at least three different sources of personal income.
• Distinguish clearly between a financial 'need' and a 'want', providing personal examples for each.
• Categorise items of expenditure from a simple spending diary.
• Analyse personal spending patterns to identify areas where savings could be made.
• Define key financial terms such as income, expenditure, budget, and savings.

Key Vocabulary

Income	All money received on a regular basis, from work, pocket money, or other sources.
Expenditure	The action of spending money; an amount of money spent on goods or services.
Need	Something that is essential for survival and wellbeing, such as food, water, or a place to live.
Want	Something that people desire to have, but is not essential for survival.
Budget	A plan that estimates income and expenditure for a set period of time.
Savings	The portion of income not spent, which is set aside for future use.

Watch Out for These Misconceptions

Common Misconception

All income comes from having a job.

What to Teach Instead

A job provides a wage or salary, which is one type of income. However, income is any money you receive, which can also include pocket money, gifts, government benefits like Children's Allowance, or profit from selling something.

Common Misconception

If I have enough money to buy something, it must be a need.

What to Teach Instead

Affordability is different from necessity. A need is something essential for survival, like food, water, and shelter. A want is something you would like to have but could live without. You might be able to afford a new video game, but it's a want, not a need.

Common Misconception

A budget is just about stopping you from spending money.

What to Teach Instead

A budget isn't about restriction; it's about control. It's a plan that helps you see where your money is going so you can make sure you're spending it on the things that are most important to you, including saving for future goals.

Active Learning Ideas

Stations Rotation

Needs vs. Wants Card Sort

Provide pairs of students with a deck of cards, each featuring an item or service (e.g., 'rent', 'new runners', 'cinema ticket', 'groceries'). Students must sort these cards into two columns, 'Needs' and 'Wants', and be prepared to justify their more contentious choices to the class.

20 min·Pairs

Stations Rotation

The One-Week Spending Diary

Students are given a simple template to track all their spending for one week. They then categorise each expense as a 'need' or a 'want' and total the amounts to see where their money is actually going.

15 min·Individual

Stations Rotation

Income Sources Brainstorm

In small groups, students use a large sheet of paper to mind-map all the possible sources of income for a teenager. Challenge them to then create a separate mind-map for the income sources of a typical adult.

15 min·Small Groups

Real-World Connections

• Creating a personal budget to save up for a specific goal, like a new phone or a ticket to a match.
• Understanding a payslip from a first part-time job in a local shop or cafe.
• Making smarter choices while shopping by prioritising needs over wants.
• Planning for the costs of a school trip or a debs.
• Beginning to understand the financial planning needed for major life events like going to college or buying a car.

Assessment Ideas

Exit Ticket

Use an exit ticket where students must list one personal need, one personal want, and one source of income they have.

Peer Assessment

Students complete a project where they create a one-month budget for a given scenario (e.g., a teenager with a part-time job), justifying their spending and savings decisions.

Quick Check

Students use a simple rubric to review their own spending diary, rating their ability to identify spending patterns and find potential savings.

Frequently Asked Questions

Is a mobile phone a need or a want?

This is a great question and it depends. A basic phone for communication and safety could be argued as a need in today's world. However, the latest, most expensive smartphone model is definitely a want, as a cheaper one would do the same basic job.

What's the difference between wages and income?

Wages are a specific type of income you get from an employer for the work you do. Income is the bigger-picture word for all the money you receive from any source, including wages, pocket money, or gifts.

Why is it so important to track my spending?

It's often a surprise to see where your money actually goes! Tracking your spending is the first step to taking control of your finances. It helps you identify your spending habits, see where you can save, and make a realistic plan (a budget) to reach your financial goals.