Grade 9 Araling Panlipunan: Relationship Between Income, Savings, and Consumption

This set explores the economic relationship between income, savings, and consumption, including banking habits, investment types, and the role of financial institutions.

Income

The amount received by a person in exchange for products or services they have provided, such as salaries for employees.

Consumption

The act of using money to purchase goods and services to satisfy needs and wants.

Savings (Roger E. A. Farmer)

According to the book Macroeconomics (2002), this is a method of postponing spending.

Savings (Meek, Morton, & Schug)

Income that is not used for consumption or spent on immediate needs.

Investment

Savings that are utilized in a way that allows them to earn or generate profit.

Economic Investment

The act of placing money specifically into a business.

Financial Assets

Specific categories where an individual can place their savings, such as stocks, bonds, or mutual funds.

Financial Intermediaries

Institutions, such as banks, that serve as mediators between individuals who save money and those who wish to borrow or take a loan.

Borrower

An individual who takes a loan to purchase assets with economic value or to use as additional capital for a business.

Inflation

The continuous increase in the general price level of goods and services in an economy, which can decrease the value of money over time.

Philippine Deposit Insurance Corporation (PDIC)

An organization that guarantees bank deposits up to the amount of $Php500,000$ per depositor.

Bank Records

Sensitive items that must be kept safe and updated, including a passbook, Automated Teller Machine (ATM) card, certificate of time deposit (CTD), and checkbook.

Unsound Banking Practices

Illegal or fraudulent activities, such as laundered money or dinayang accounts, which are not covered by PDIC insurance.

Impulsive Buyer

A person who buys things based on whim as long as they have money, often neglecting actual needs until the funds are exhausted.

Factors of Production

Resources originating from the household including land, labor, capital, and entrepreneurial ability.