People earn an income when they are hired by an employer to work at a job. Income is earned as a wage, a salary or a sales commission.
Let’s look at an example of each:
Andrew works as a waiter at the Pancake Hut. He earns a wage. A wage is a set amount of money per hour of work. Andrew’s wage is $12 per hour.
Ellie works as a scientist. She earns a salary. A salary is a set amount of money per year. Ellie’s salary is $50,000 per year. If she adds up all her paycheques this year, the total will equal $50,000.
Toby works as a real estate agent. He earns a sales commission. A sales commission is an amount of money based on part of a sale amount. Tony is helping a family sell their house. The family agrees to pay Tony 5% of the house’s sale price. Tony sells the house for $200,000. The family pays him $10,000, which is 5% of the $200,000 sale.
1. List three different ways an employer can pay you for working at a job.
2. What is the difference between a wage and a salary?
3. A is income based on part of a sale amount.
4. What would Andrew have to do to earn more money at his job? What would Toby have to do?
5. Bonus Question: A wage, a salary and a sales commission are all ways to earn income at a job.
What is another way to earn income?
Use these materials as an additional resource to go along with the video and article. These can be used in your classroom, at home or even just for you!