This document discusses key concepts related to personal finance including income, expenses, budgets, and savings. It defines income as money earned from work or gifts and expenses as things purchased for personal use like food or school fees. Fixed income comes regularly from a job, while variable income fluctuates. The document stresses the importance of tracking expenses and having a budget to control spending and avoid debt. It also explains that savings involves spending less than earned and putting money aside, while investments allow earning more through opportunities like property rentals.

1. Economics and
Management Science
Grade 7
By: Mr N Mboniswa
Financial literacy: Accounting concepts

2. Module outcomes
Fully understand the following:
 Personal income and expenses.
 Types of personal income
 Budgets.
 Savings.

3. Personal incomes and expenses
 Income is the money coming in and personal income is your own money that
you have earned or have been given.
 For example, some of the learners receive pocket money from their parents
and some learners have part-time jobs to earn money which they can
generally describe it as their personal income.
 Personal expenses are the things on which you spend money such as school
fees, food or rent.

4. Types of personal income
 FIXED INCOME includes the amounts that are received regularly by someone
such as salary.
 VARIABLE INCOME is an uncertain form of income.

5. Expenses
 Expenses is the money that goes out of your income or saving due to personal
use.
 Personal expenses
 These are regarded as things you spend money on for personal use.
 Many people live with debt, a debt basically means you owe someone money.
 Calculate late your personal expense by adding up the cost of everything you
buy.
 It is important for you to know how to control your money and limit your
expenses.
 Many people live in debt due to this (Discussed in SAVINGS)

6. Personal expenses…(continuation)
 Due to the inability to control their finances and end up overspending.
 They end up borrowing money from the bank or money lenders.
 Thus being in debt, this is an expense.

7. Questions
 Why do you think people overspend their money?
 Have you ever overspent money? And did you learn a lesson about it?

8. Savings and investments
 SAVINGS is spending less than you generally earn.
 Put a bit of it aside for rainy days.
 INVESTMENT is earning more income by making your money work for you.
 By this we mean maybe by putting your money in a new concept,
 A new spaza shop to sell snacks, by this you earn profit.
.

9. Three different types of investment.
 Pension: A portion of your monthly earnings is invested and when you retire
the pension fund pays you back in monthly instalments.
 Rentals: This is in form of property which is a good investment as it can be
rented out while earning and repaying the loan.
 It will provide an income once paid off.
 Fixed deposit savings account: This is for when you want to save money for a
fixed given period of time during which you cannot withdraw.
 The longer you wait, the higher the return.

10. Budgets
 It is a written plan that shows anticipated income and estimated expenses.
 For example the national budget (speech).

11. Activity
Column A Column B
1. Money spent for personal use. A. Expenses
2. Money one has saved through a bank/official
scheme
B. Income
3. Costs needed to live. C. Budget
4. Difference between revenue and costs. D. Personal expense
5. Estimate of income and expenditure for a set
time period.
E. Savings