Ages 7+ · Money · Earning and jobs
What a shopkeeper earns
The big ideaA shop earns what is left after its costs. Coins in, minus coins out.
How it works
A shop has coins coming in and coins going out.
Coins that come in are called income. Coins that go out for things are called costs.
Profit is what is left: income minus costs. That is what the shop really earns.
Some days there is a profit, and some days the shop is short.
Example 1: Income
- Each bunch sells for 2 coins.
- Nico sells 7 bunches.
- 2 + 2 + 2 + 2 + 2 + 2 + 2 = 14
- 14 coins came in.
Example 2: Costs
- Flowers cost 6 coins, ribbon 2 coins and paper 1 coin.
- 6 + 2 = 8
- 8 + 1 = 9
- 9 coins went out.
Example 3: Profit
- 14 coins came in and 9 went out.
- 14 − 9 = 5
- The profit is 5 coins. That is what the shop really earned.
Example 4: A slow day
- On Tuesday Nico sold 3 bunches, so 6 coins came in.
- 9 coins still went out.
- 9 − 6 = 3
- He was 3 coins short, which can happen in a shop.
Words to know
- income
- Coins that come in.
- costs
- Coins that go out for things.
- profit
- What is left: income minus costs.
- till
- A box for coins.
Watch out
- Income is not profit. The 14 coins that came in are not all Nico's.
- Costs still have to be paid on a slow day.
- Profit is income minus costs, not income plus costs.
Try it
- A shop takes in 14 coins and pays out 9. What is the profit?
- Are coins paid to the flower farmer income or costs?
- 10 coins come in and 9 go out. How many are left?
- 6 coins come in and 9 go out. How many coins short?
Answers: 1. 5 · 2. Costs · 3. 1 · 4. 3
Try at homeWith a grown-up, visit a shop and ask the shopkeeper what the shop has to pay for. The shopkeeper keeps what is left.
For grown-upsVisit a shop with your child and ask the shopkeeper what the shop has to pay for. The shopkeeper keeps what is left after the costs.