Understanding Types of Income

Curriculum Alignment

Australian Curriculum (Year 9) – Economics and Business

• Content Descriptor: AC9HE9K01 – Identify the different ways people generate income and explain the role of work in society.
• General Capability Focus: Numeracy, Critical and Creative Thinking, Ethical Understanding

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Lesson Overview

In this engaging 60-minute lesson, students will explore the various types of income sources available in Australia. Through interactive discussions, group activities, and relevant real-world examples, students will gain a strong understanding of employment income, investment income, passive income, and government benefits.

By the end of the lesson, students should be able to:

• Identify and describe different types of incomes in Australia.
• Analyse how different types of incomes impact lifestyle and financial security.
• Discuss the importance of diversifying income sources for future financial stability.

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Lesson Structure (60 minutes)

1. Introduction – "Where Does Your Money Come From?" (10 mins)

• Teacher Prompt: "Imagine you have just turned 18. Apart from working a job, where else might you get money from?"
• Think-Pair-Share Activity:
  • Students brainstorm different income sources and discuss with a partner.
  • Teacher writes responses on the whiteboard under different categories (e.g., wages, investments, government benefits).
• Mini-Discussion:
  • Teacher provides real-world examples (e.g., AFL players earning sponsorship deals vs. a casual retail worker’s weekly earnings).

2. Types of Income Breakdown (15 mins)

• Direct Instruction: Explain each income type with Australian-specific examples:

  Income Type	Definition	Example
  Earned Income	Money received from employment (wages, salaries, commissions).	Part-time job at Coles, Uber driving
  Business Income	Profits made from running a business.	A small business selling handmade candles on Etsy
  Investment Income	Money earned from investments.	Dividends from shares in Commonwealth Bank
  Passive Income	Money earned with little or no effort after the initial work is done.	Renting out an investment property
  Government Payments	Financial support from the government.	Centrelink Youth Allowance or JobSeeker

• Class Discussion:

  • Ask students: Which types of income do you think are the most stable? Which ones are the most risky?

3. Group Challenge – "Design a Financial Future" (20 mins)

• Activity:

  • Divide students into small groups of 4-5.
  • Each group receives a fictional profile (e.g., a university student, an apprentice, a start-up founder, a full-time office worker).
  • They must identify which types of incomes their person has and suggest ways to grow their income source.
  • Each group presents to the class in 2-minute quick pitches.

• Teacher Facilitation:

  • Provide feedback on the financial plans, asking guiding questions:
    • "Are all income types reliable in the long run?"
    • "How might income types change throughout life?"

4. Real-World Reflection (10 mins)

• Independent Task:
  • Students write a short reflection on:
    1. Which type of income they would prefer in the future and why.
    2. One action they could take now to start earning a new type of income.
• Class Wrap-Up: Summarise key learnings and ask volunteer students to share their reflections.

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Assessment & Homework Extension

In-Class Assessment:

• Teacher observes participation in discussions and group work.
• Collects and quickly reviews students’ written reflections.

Optional Homework Extension:

• Research one Australian entrepreneur or influencer who has multiple income sources and prepare a short summary of their earnings model (e.g., Kylie Jenner with cosmetic sales, social media brand deals, and investments).

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Resources & Materials Needed

✅ Whiteboard and markers
✅ Scenario cards for group activity
✅ Printed summary table on types of income
✅ Student journals or devices for reflections

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Teacher Reflection & Next Steps

• Did students engage in deeper critical thinking about income sources?
• Were students able to make connections between income diversification and financial security?
• How can this lesson be extended to include budgeting and money management in future classes?

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Final Thought for Students

"The money you earn today is important, but the way you grow it over time can shape your future lifestyle. Think beyond wages—how else can you create income for yourself?"