📖 Chapter 4 of 11 · Smart Money Basic (Multi Indian Language) · Class 4–7
Chapter 3 · Earning, Saving and Spending
Now that you remember what money is and the difference between needs and wants, it is time to learn the three biggest activities you will do with money — for the rest of your life. They are called earning, saving, and spending.
1. Earning means receiving money in return for work or effort. Your parents earn by going to a job, running a shop or a farm. You may earn pocket money by helping at home, doing well in studies, or by selling things you have made.
2. Saving means keeping some of the money you earn safely aside, instead of spending all of it. The money you save today is your friend tomorrow — it can be used for an emergency, a special goal, or a big dream.
3. Spending means using money to buy things. Smart people always spend on their needs first, save some money next, and only then spend on wants.
Story Time — Meera's Tiffin Service
Meera · Pune, Maharashtra
Meera was twelve years old. Her family lived in a small flat in Pune. After her father's job hours were cut, money at home became tight. Meera's mother started a small lunch-tiffin service for office-goers in the building next door.
Every morning before school, Meera helped her mother pack the dabbas — three rotis, one sabzi, a small katori of dal, and a piece of jaggery. Each tiffin sold for ₹80, and her mother delivered fifteen tiffins a day.
One Saturday, her mother gave Meera ₹150 for her help all week. “This is your share, beta. You earned it.” Meera was thrilled. But then she had a choice. She could go straight to the shop and buy a big bar of chocolate for ₹100, or she could think a little harder.
Meera divided the ₹150 into three small pouches — ₹75 to save in her piggy bank, ₹45 to spend on a small snack she really enjoyed, and ₹30 to keep aside for her brother's birthday gift next month. “Earned, saved, and shared — all from one week's help!” her mother smiled.
Solved Examples
Think first, then read the answer!
1. Meera earned ₹150 in one week. If she works the same way for 4 weeks, how much will she earn in a month?
Show answer
Answer: Earning in 4 weeks = ₹150 × 4 = ₹600. Meera will earn ₹600 in one month.
2. Meera saves ₹75 every week. How much will she have saved in 12 weeks?
Show answer
Answer: Total saving = ₹75 × 12 = ₹900. That is a small fortune for a 12-year-old!
3. Out of ₹150, Meera spent ₹45 on snacks. What fraction and what percentage did she spend on snacks?
Show answer
Answer: Fraction = 45 ÷ 150 = 3/10. Percentage = (45 ÷ 150) × 100 = 30%. She spent 3/10 (or 30%) on snacks.
4. Meera's mother sells 15 tiffins a day at ₹80 each. What is her daily earning? If ingredients cost ₹600 a day, what is her daily profit?
Show answer
Answer: Daily earning = 15 × ₹80 = ₹1,200. Profit = Earning − Cost = ₹1,200 − ₹600 = ₹600.
Key Word
PROFIT = Money received − Money spent. If money received is less than money spent, that is a LOSS.
Check Your Understanding
Q1. Define earning, saving and spending in your own words.
Q2. Name three ways a child of your age can earn small amounts of money in an honest manner.
Q3. If you earn ₹400 in a month and save half of it, how much will you have saved in one year?
Q4. A vegetable seller sells ₹250 worth of vegetables in a day. His cost is ₹160. What is his profit?
Q5. Should we spend everything we earn? Give two reasons for your answer.
Q6. In Meera's story, what fraction of her earning did she give towards her brother's gift?
Check your understanding — Chapter 3
Tap an answer to check it instantly. These are for practice — nothing is saved or sent.
Q1. What does “earning” mean?
- Receiving money in return for work or effort
- Keeping money in a piggy bank
- Buying things at a shop
Show answer
A. Receiving money in return for work or effort
Q2. Earning ₹1,200 with a cost of ₹600 gives a profit of —
- ₹1,800
- ₹600
- ₹1,200
Show answer
B. ₹600
Q3. Should we spend everything we earn?
- Yes, spend it all
- No — save some for tomorrow first
Show answer
B. No — save some for tomorrow first
✎ Activity
Make three small paper envelopes. Label them EARN, SAVE and SPEND. For the next four weeks, divide every rupee that comes into your hands into these envelopes. At the end of the month, see which envelope is the fullest!