Income, spending and saving choices
Every pound earned involves a choice: spend it now, save it, or something in between. Those choices add up over a lifetime.
Part of your national curriculum
- Financial capability: Understand income, spending, saving and the choices involved in managing personal finances
Lesson overview
What you'll learn in this lesson
Understand income, spending, saving and the choices involved in managing personal finances
Key learning points
- • Where income comes from
- • Needs versus wants
- • The power of saving early
This lesson at a glance
- 20 minutes
- 17 parts to scroll through
- 3 quick checks
- Marked quiz at the end
- Gentle pace: short sittings with pauses
Words to know
Scroll down — the lesson carries on below
Watch & discover
Part 1 of 17
Visual introductionPicture this
Income, spending and saving choices
Every pound earned involves a choice: spend it now, save it, or something in between. Those choices add up over a lifetime.
In a nutshell
Understand income, spending, saving and the choices involved in managing personal finances
Learning cycle
Part 2 of 17
Learning cycle 1 of 2
Part 1 · Where income comes from
A short piece of teaching, then a check to make sure it has landed.
Explore the idea
Part 3 of 17
Learn
Where income comes from
For teenagers, income might come from pocket money, part-time jobs, or gifts; adults earn income mainly through wages or salaries, but also through benefits, pensions or investments. Understanding gross pay (before deductions) versus net pay (after tax and National Insurance) matters once you start earning regularly.
Reset break
Part 4 of 17
Pause
That's sitting 1 of 4 done
Stretch, get a drink, look out of the window. There is no timer and nothing is counting down — your place is saved, so you can come back in five minutes or tomorrow.
Explore the idea
Part 5 of 17
Learn
Needs versus wants
Needs are things essential for living, such as food, shelter and travel to school or work, while wants are things that are nice to have but not essential, like the latest trainers or a games subscription. Prioritising needs before wants is a core budgeting skill, especially when income is limited.
Quick check
Part 6 of 17
Quick check
Part 7 of 17
Reset break
Part 8 of 17
Pause
That's sitting 2 of 4 done
Stretch, get a drink, look out of the window. There is no timer and nothing is counting down — your place is saved, so you can come back in five minutes or tomorrow.
Learning cycle
Part 9 of 17
Learning cycle 2 of 2
Part 2 · The power of saving early
A short piece of teaching, then a check to make sure it has landed.
Explore the idea
Part 10 of 17
Learn
The power of saving early
Money saved earns interest over time, and starting to save early — even small amounts — means those savings have longer to grow through compound interest, where interest is earned on both the original amount and previously earned interest. This is why financial advisers often say 'time in the market' matters more than the size of the first deposit.
Quick check
Part 11 of 17
Reset break
Part 12 of 17
Pause
That's sitting 3 of 4 done
Stretch, get a drink, look out of the window. There is no timer and nothing is counting down — your place is saved, so you can come back in five minutes or tomorrow.
Challenge round
Part 13 of 17
Game · Sort it
Which of these are true?
Drag each card into the right column. Tap a card first if dragging is fiddly.
True
Not true
Challenge round
Part 14 of 17
Game · Fill the gaps
Finish the sentences
Choose the word that belongs in each gap.
For teenagers, ____ might come from pocket money, part-time jobs, or gifts; adults earn income mainly through wages or salaries, but also through benefits, pensions or investments.
Challenge round
Part 15 of 17
Game · Recall cards
Increase 240 by 15%.
Card 1 of 4
Mastery quiz
Part 16 of 17
Marked quiz
End of lesson quiz: Income, spending and saving choices
4 questions, marked with the reasoning shown. No timer.
1. Increase 240 by 15%.
2. A count drops from 200 to 150. The percentage decrease is…
3. Which multiplier applies a 7% decrease?
4. What is the difference between gross and net pay?
Lesson round-up
Part 17 of 17
Lesson round-up
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Ask LunaPart 1 of 17 · Watch & discover
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Understand income, spending, saving and the choices involved in managing personal finances