Time needed: 20–30 minutes
Part of financial literacy is learning the two ways people make money. Earned income is when people earn money when they’re hired to work. Unearned income is when people receive income that is not related to payment for work. In this financial literacy activity, high school Girl Scouts will learn about the difference between earned and unearned income by looking at examples of income and sorting them into “earned” or “unearned.”
Have a discussion with Seniors (9th and 10th graders) about wealth. Say: “Wealth is the value of everything someone owns. Some people have wealth, which is passed down, such as an inheritance. Some have wealth because they’re able to save. Some have wealth from income from jobs. What other ways can people have wealth?” (Answers might include: A pro athlete signing a deal for a contract)
What’s the difference between your wealth and being wealthy? (Answers could be: Wealth is the net worth, that includes all assets—the value of everything a person owns. Wealthy is when a person accumulates a lot of money, has financial freedom, and is free of debt.)
Ask Seniors: “What would you do with your wealth? Do you want to own a business; work toward something you’re passionate about; or have the freedom to do things you enjoy, like travel?”
Then have Seniors pair up to answer U (unearned) or E (earned) next the items on the list.
Have the pairs share their answers with the group. If they aren’t sure about an answer, ask them to look it up.
Earned/Unearned Income list for printouts:
Answer key for volunteer:
1-E, 2-U, 3-U, 4-E, 5-E, 6-E, 7-U, 8-U, 9-U, 10-U
Troop Leaders: The instructions for all badge steps are available free of charge in your Girl Scout Volunteer Toolkit.
Girl Scout Activity Zone activities have been adapted from existing Girl Scout programming.