Money Matters

Bartering is a form of trading, it involves swapping something you have for something you want. In the olden days, things such as animals, corn, grain and tools were traded.

Coins were introduced becuase people became sick of weighing things over and over again. It was easier to weigh a single piece of metal and put a marking on it. A little piece of metal was also nice and easy to carry

• Money must be:
• Divisible- can be easily divided into different portions
• Accepted & recognised- widely recognised as a form of payment
• Secure- difficult to be copied
• Portable- easy to carry and send to others

• Cheques are a non cash form of payment, that are like a promise to pay a certain amount of money. The amount is written down and this piece of paper is the cheque.
• Advantages: can be sent safely through the mail, and is relatively secure
• Disadvantages: takes time to process, and can be used to cheat other people

• These are a non cash form of payment, based on a credit contract that allows users access to a line of credit. In return, they pay high amounts of interest if they dont pay it back on time.
• Advantages: quick and convenient, no waiting through the process of getting a loan when making certain purchases
• Disadvantages: high cost of operating, and can end up paying huge sums

• Eftpos is a non cash form of payment, that allows users to transfer money from one account to another
• Advantages: low cost, relatively secure, and its your money not the bank's so no big interest ot fines
• Disadvantages: some stores dont take eftpos, plus you have to keep track of how much is in your account

• This is another form of non cash payment, involving transactions completed over the computer.
• Advantages: a very quick way to make payments
• Disadvantages: one wrong click on the computer can result in serious mistakes to do with your money

• Money, in the form of notes and coins. Its quick and easy to use, and the most popular method of payment
• Advantages: usually can be used everywhere
• Disadvantages: can be easily lost of stolen, also it can be hard to keep records of cash

• Date
• Payee (person cheque is made out to)
• Detail (reminds you of what the cheque was for)
• Fwd. (how much $ you have in your account before the cheque was written)
• Chq. (amount of cheque)
• Bal. (The balance in your account once the cheque is written)

This is the account you use to do all your daily transactions and where most of your income would go. Money goes in and out of it quite frequently and so there's not huge amounts of interest that can be earned in everyday accounts

This is an account where you put your money away if you want it to grow. There is normally a high amount of interest and this then builds up and up with your savings, so you're money is growing.

• The interest and benefits the bank provides
• The fees and charges that apply to that account

Designed for people who dont need immediate access to their money. It is kept locked away for a period of about one to two years, earning a higher amount of interest than normal

• Wages- earnings (from casual work at places such as bakeries, supermarkets) where you are paid by the hour
• Salary- salary earners are people with full or part-time jobs, and are entitled to sick leave, superannution and long service leave
• Commision- people such as real estate agents or car yard sales assitants may be paid according to how many sales they make
• Fee- payment for a service performed, such as a doctor or dentist's fee
• Royalties- earnings made by musicians, artists and writers
• Rent- tenants living in property that belongs to you must pay rent or board

Money you put away while you're still earning, that can also get interest and grow. Usually you add to it, and so does your employer, so when you retire you will be able to live off this money

A fixed expense is an amount you spend that remains the same every time, for example, rent each month or a monthly mobile phone plan. A variable expense is something that changes over time or may be a one-off puchase, such as the cost of petrol or groceries that is always different, or the cost of buying a DVD player one month

A budget is financial plan that helps people get the most out of their income. When drawing up a budget, you must list your income in one column and list your expenditure in another column with a total down the bottom.

Tax is collected from individuals and from businesses

• Local: property rates (based on the value of house and land)
• State- payroll tax, stamp duty, land tax and special purpose levy (eg: emergency services)
• Federal- income tax, company tax, GST, fringe benefits tax, Medicare, capital gains tax, customs duty, excise, departure and special purposre levy (eg: air passengers)

Assessable income is the money you earn which tax must be paid on. It includes money earned from wages, salaries, welfare benefits and also money earned from rent, interest, dividends or capital gains. Other money you get such as inheritance or in a gift or lottery winning is not classified as assessable income.

The expenses incurred while earning your income. These allowable deductions can be subtracted from your assessable income to find your taxable income. To claim deductions in order to reduce the amount of tax you must pay, there must be a legitimate link between the expenses and your work. Private expenses aren't allowable deductions

A Tax File Number is the first step in becoming part of the tax system. It is a unique 9-digit number issued by the tax office to an individual or business to identify them as a tax payer.

This form, which is used to calculate the correct amount of tax your employer must withhold from your pay, includes your TFN and says whether you will be claiming the tax-free threshold. If you don't fill out a TFN declaration form, your employer will have to withhold 46.5% of your pay as tax.

A tax return is a document you submit to the Tax Office to tell them how much income you earned throughout the financial year, and any tax deductions or offsets you will be claiming.

The Medicare Levy is 1.5% of your taxable income. It goes towards maintaining the public health system. The medicare levy may be reduced for those with low incomes.

The Goods and Services Tax is a tax of 10% that is paid on all the things we consume. It is included in the price of the product. Exempt from this are basic foods, child-care, education, and some health care goods and services.

This is a tax you must pay on the profit made from disposing of certain assets. The capital gain is added to the other assessable income and taxed at the normal income tax rates. If you have owned the asset for at least 12 months, a 50% discount can apply.