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Making Money

It's A Money Thing

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Different Ways to make Money: Wage, Salary and Commission

People earn an income when they are hired by an employer to work at a job. Income is earned as a wage, a salary or a sales commission.

Let’s look at an example of each:

Andrew works as a waiter at the Pancake Hut. He earns a wage. A wage is a set amount of money per hour of work. Andrew’s wage is $10 per hour.

Ellie works as a scientist. She earns a salary. A salary is a set amount of money per year. Ellie’s salary is IAMT Jr - Making Money Square1$50,000 per year. If she adds up all her paychecks this year, the total will equal $50,000.

Toby works as a real estate agent. He earns a sales commission. A sales commission is an amount of money based on part of a sale amount. Tony is helping a family sell their house. The family agrees to pay Tony 5% of the house’s sale price. Tony sells the house for $200,000. The family pays him $10,000, which is 5% of the $200,000 sale.

Questions:

  1. Can you list three different ways an employer can pay you for working at a job?
  2. What is the difference between a wage and a salary? 
  3. A  ______   is income based on part of a sale amount.
  4. What would Andrew have to do to earn more money at his job? What would Toby have to do?
  5. Bonus Question: A wage, a salary and sales commission are all ways to earn income at a job. What is another way to earn income?

 


Activity

What do you want to be when you grow up? You can access the printable PDF version here. 

IAMT Jr - activity sheet


IAMT Jr - Making Money Comic


Get money smart, one topic at a time! Our It's A Money Thing topics will help you interpret key financial information in order to make sense of your money. For more videos and helpful financial articles visit our  It's A Money Thing home page.  Check back, new topics will be introduced regularly!

Topics Covered

  • It's A Money Thing Junior

Related Lessons

It's A Money Thing Junior 2 min
Giving Money
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Borrowing Money

Oregonians Credit Union

6915 SE Lake Road, Milwaukie, OR 97267 

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