Module II: Sources of Income

Introduction:

Module II is entitled “Sources of Income.” This module aims to show the

participants what can be the different sources of income.

It is important to know these things because it is in these sources that one gets
his income and his provision for expense.

This session is made up mainly of a lecturette that will tackle the different
sources of income.

Time allotment:

Introduction 5 minutes

Priming Activity 5 minutes

Main Activity 15 minutes

Lecture 15 minutes

Reflection 5 minutes

Total 45 minutes

General Objectives:

At the end of this session, the participants will be able to identify the different
sources of income and also have an initial knowledge of what really is their source of
income.

Specific Objectives:

 Have an overview of the different sources of income

 Differentiate earned and unearned income

Materials Needed:

Play Money

Bond Paper

Pen

Pencil

Laptop

Projector

Priming Activity:

“Income Word Game”

1. The facilitator will hand out printed papers and pens/pencils to the
participants.
2. The participants will try to look for as many words as they can related to
income.
3. The facilitator will then relate these words to the discussion.

Main Activity:

“Change Maker”

1. Distribute the play money to the participants.

2. The amount given to them is the amount of their piggy bank.
3. They would have to purchase something from the store and should tell the
vendor how much change he should get.
4. If the answer is right, the amount of change would be an addition to the piggy
bank.
5. If the participant is unable to answer correctly, the amount of change would
be subtracted from the piggy bank.
Processing questions:

1. How was the activity?

2. Were you able to have an initial glimpse of income and its sources?

Lecturette:

Sources of income would simply mean where the money came from. It is the
source or origin and it is where we get our money to provide for us and for our family.
Examples would be our job and our investments. These things are considered as
sources of income.

I. Define and Differentiate Earned and Unearned Income

Unearned income - is income from investments and other sources unrelated

to employment. Examples of unearned income include interest from savings
accounts, bond interest, alimony, and dividends from stock. Unearned income,
known as passive income, is income not acquired through work.

Earned Income - is income gained from employment, work, or through

business activities. It includes wages, salaries, tips, and self-employment income.

II. Government Grants and Others

Government grant - is a financial award given by the state local government

authority for a beneficial project of some sort. It is effectively a gift: It does not
include technical assistance or other financial assistance, such as a loan or loan
guarantee, an interest rate subsidy, direct appropriation, or revenue sharing.
The grantee is not expected to repay the money.
 Home Based Business – a business whose primary office is in the owner's
home. The business can be of any size or any type as long as the office itself is
located in a home.

Reflection:

1. Do I have a source of income?

2. Is it adequate for me and for my family?
3. How do I increase my income?

References:

Home Based Business. Retrieved from

https://www.entrepreneur.com/encyclopedia/home-based-business

Kagan, J. (2020). Unearned Income. Retrieved from

https://www.investopedia.com/terms/u/unearnedincome.asp

Segal, T. (2019). Government Grant. Retrieved from

https://www.investopedia.com/terms/g/government-grant.asp