Outline the various types of income an individual can earn.
Income is the money an individual gains from different sources to pay for things. Income that is not spent is kept and collected as savings.
Working for wages or a salary - Wages are best connected with employee compensation based on the amount of hours worked multiplied by an hourly rate of pay. A salary is paid by your employer. A salary is best corresponded with employee payment given and quoted on an annual basis. The positives of this ensures that -
The person receives a steady income
They earn a set of money each week, month or year regardless of how many hours that have or haven't worked. This means they are never likely to run out of money and they can plan buying things around when their payment is received.
Employers are able to quit their jobs at any time to move to another.
Being on a salary enable you to be more flexible so that the employee can take absences from work when needed without being paid less.
However the negatives of working for a salary or wage are -
There is considered to be a disadvantage for hourly workers, they suffer when they work fewer hours and are given less holidays or sick leave.
Those that are paid annually or monthly have to wait before they are paid, meaning if they are not wise with their purchases during …show more content…
People save for many reasons whether that is for the unfortunate event that you become sick or injured, you lose a job and cannot support yourself with a steady income anymore or just to create a piece of mind of financial security. Others may save to have money for when they retire or to leave time to be sure about a large purchase they are making. The savings can be kept to put towards investing in earning an interest or to be spent in the future. People save at all different ages depending on what they want to buy and the amount of money needed to afford that
Income is the money an individual gains from different sources to pay for things. Income that is not spent is kept and collected as savings.
Working for wages or a salary - Wages are best connected with employee compensation based on the amount of hours worked multiplied by an hourly rate of pay. A salary is paid by your employer. A salary is best corresponded with employee payment given and quoted on an annual basis. The positives of this ensures that -
The person receives a steady income
They earn a set of money each week, month or year regardless of how many hours that have or haven't worked. This means they are never likely to run out of money and they can plan buying things around when their payment is received.
Employers are able to quit their jobs at any time to move to another.
Being on a salary enable you to be more flexible so that the employee can take absences from work when needed without being paid less.
However the negatives of working for a salary or wage are -
There is considered to be a disadvantage for hourly workers, they suffer when they work fewer hours and are given less holidays or sick leave.
Those that are paid annually or monthly have to wait before they are paid, meaning if they are not wise with their purchases during …show more content…
People save for many reasons whether that is for the unfortunate event that you become sick or injured, you lose a job and cannot support yourself with a steady income anymore or just to create a piece of mind of financial security. Others may save to have money for when they retire or to leave time to be sure about a large purchase they are making. The savings can be kept to put towards investing in earning an interest or to be spent in the future. People save at all different ages depending on what they want to buy and the amount of money needed to afford that