Hey there, my friends! Now, let’s talk about how people make money. People need money to buy things and do fun stuff. There are different ways to get money.
1. Working for someone else.
This means you have a job, and your boss, called an employer, pays you a salary. Your parents might have jobs like this. What do your parents do for a living? Do you know what you’d want to be when you grow up? Some jobs pay more money but might need more schooling and training.
When picking a job, it’s not just about the money. You should also choose something you enjoy doing. Remember this saying “If you love what you do, you’ll never work a day in your life.”
2. Working for yourself.
This means you have your own business, like an e-store like mine, shop, or restaurant. People who do this are called self-employed or business owners. They make money, called profit, by selling things or services higher than the costs to run the business.
To figure out profit, you take all the money made from selling stuff (that’s called revenue) and subtract all the money spent to run the business (that’s called expenses). If there’s more money coming in than going out, you have a profit! Profits help the business grow and get bigger.
But if the expenses are more than the revenue, the business has a loss. This means more money is spent than made. Nobody wants that, because if it keeps happening, the business might have to close down.
So, remember, whether you work for someone else or have your own business, it’s important to manage your money well and choose something you love doing!
