UNIT 4. Money and business

UNIT 4. MONEY and BUSINESS

The test will be next:

SPEDING MONEY We can spend money on consumer products and services. We can use:

Cash
Debit cards: the money leaves our bank account inmediatly.
Credit cards: the money doesn´t leave our bank account inmediatly. The bank lends money and we pay this money back later on. Sometimes we have to pay an interest to the bank.

SAVING MONEY We can save money for different reasons: to buy a house, pay for a holiday… We can use:

INVESTING MONEY We can invest money, that means that we buy something in order to make more money. We can buy:

Shares: you invest money in a business, you buy part of a company
Bonds: you lend money to the government or a company and they pay you interest.
Houses or flats: you can rent the house and earn money.

HOW DO WE SPEND MONEY?

What can we buy?
HIGH-ORDER PRODUCTS	LOW-ORDER PRODUCTS
These products have a high price. We don´t buy them regularly. Examples: house, cars, clothes...	These products have a low price. We buy them every week. Examples: food, drinks...

Where we can spend money?
TOWN CENTRES	SHOPPING CENTRES	THE INTERNET
In the centre of the town we can find specialist shops with high-order and low-order products.	We can find big shops and supermarkets and some other services: cinemas and resturants. We can buy high-order and low-order products.	Many retail shops offer online shopping. We can buy high-order and low-order products

Bills: monthly payments that we have to do to pay for services such as: gas, electricity, water…

BUDGETS

A budget is a plan of how much money we can spend and how we are going to spend it. There are:

HOUSEHOLD BUDGETS: to buy fod, clothes and for planning holidays.
BUSINESS BUDGETS: to plan how much they will spend on costs and the salaries they have to pay.

Having BUDGETS help us to save money and to controls our money.

COMPANIES
SELF-EMPLOYED	SMALL BUSNIESS	COOPERATIVE	CORPORATION
They work for themselves. Examples: plumber, electrician...	They have a small number of people working. Example: transport or retail	All the people working in the company own it together. The objective is to make money.	People who have shares in the company.