Income facts for kids
Income is the money people or businesses earn, usually from working or selling things. For most people, income means the wages or salary they get from their job. It's the money you receive regularly that helps you pay for things you need and want.
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What is Income?
Income is basically the total amount of money you get from different sources. Think of it as all the cash flowing into your pocket or bank account. This can come from your job, but also from other ways, like selling something you made, or even from investments.
Income for Individuals
When you work, your employer pays you a salary (a fixed amount each year) or wages (money based on the hours you work). This money is your income. Before you even see it, some money might be taken out for things like taxes. The amount you get before any money is taken out is called your gross income. The money you actually receive after everything is taken out is often called your net income or "take-home pay."
Income for Businesses
Businesses also have income. For a company, income is the money it earns from selling its products or services. In the United States, when people talk about a company's income, they often mean the money left over after the company has paid for all its costs, like paying employees and buying materials. Outside the U.S., this is more commonly called profit or earnings. It's the money a business has made after all its expenses are covered.
Why is Income Important?
Income is super important because it allows people and families to buy food, pay for housing, and cover other daily expenses. It also lets people save money for the future, like for college or a new car. For businesses, income shows how well they are doing and helps them grow, create more jobs, and develop new products.
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