Economy
Primary 4 · Social and Religious Studies
Economy
Lesson 4 of 5
13 min
It is Saturday, and Umutoni goes to the market with her mother. Her mother has a small list: beans, cooking oil, soap and a pen for Umutoni. At the market, a trader shouts, "Beautiful new dresses! Cheap, cheap!" Umutoni pulls her mother's hand. Her mother smiles and shows her the list. "First the list," she says. "Then we will see."
| Factor | Example |
|---|---|
| Income: how much money a family earns | A family that earns more can buy more. |
| Prices | When the price of beans goes up, the same money buys fewer beans. |
| Size of the family | A big family needs more food and more school uniforms. |
| Needs and priorities | If someone is sick, medicine comes first. |
| Time of year | Families spend more at the start of the school year and at festivals such as Christmas and Eid. |
| Adverts and friends | An advert or a friend can make you want something you do not need. |
Keza has 1,000 Frw. She needs an exercise book (300 Frw) and a pen (200 Frw). She would also like a packet of sweets (500 Frw).
Needs first: 300 + 200 = 500 Frw. Money left: 1,000 − 500 = 500 Frw.
Now Keza can choose: spend the 500 Frw on sweets, or save it. Either way, her needs are already paid for!
Tip
Need it? Buy it. Want it? Wait for it. A want that is still important next week is worth saving for.
Answer: Any four of: food, rent, school, health, clothes, transport, water and electricity, farming, helping others, savings.
Answer: Any two of: income, prices, family size, needs and priorities, time of year, adverts and friends.
Answer: It helps you buy your needs first and not waste money on things you do not need.
Answer: 600 Frw.
Answer: Keep using his old boots and save for new ones later, if he still wants them.
What you learned today
Sources and credits
Written by Ganzaa.
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