Once you leave school, you’ll likely join the workforce, if you haven’t already started working while studying. Most people work to earn a wage , which helps them a certain standard of living. Entrepreneurs also work to make money, and they usually pay themselves a salary . Some people earn a wage based on how many hours they work, while others get a salary, which is a ýxed amount, no matter how many hours they work. But money can come from many places, not just jobs. Some of these sources are shown in TABLE1 .
SkillBuilder discussion Communicating 1. How does having a job help someone earn income? 2. What types of goods and services can be purchased with income from a job? 3. Why is income important for meeting daily needs andwants?
FIGURE3 Jobs provide income that is used to buy goods and services.
TABLE1 Alternative sources of income Alternative source of income Description Superannuation
Superannuation is the money that people save for their own retirement. Money is transferred from a person’s weekly income and placed into a superannuation fund. People are able to access their superannuation upon retirement. Given that Australia’s population is ageing, superannuation is an increasingly important form of income. People such as real estate agents may earn a commission. This means that for every sale they make, they receive a small percentage of the money made. The more they sell, the larger the commission they receive. People may receive a welfare payment for a range of different reasons. Some retired people receive a pension to help them with their living expenses. Other people may receive a welfare payment if they are unemployed or if they are not working for some other reason (such as illness). Many people in Australia own an investment property. An investment property is one that the owners do not live in. Instead, they rent it out to tenants. The rent payments received from tenants provide an alternative source of income for the owners of the property. Some people choose to invest in companies. To do this they buy a ‘share’ in the company. These people will then become part owners of the business. They are known as shareholders. When the company makes a proýt, it distributes some of the proýt to the shareholders, and this is called a dividend.
Commission
Welfare payments
Rental income
Dividends
TOPIC17 Working for a living 601
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