Money

Habari Mwanafunzi! Let's Talk About Pesa!

Welcome to an exciting lesson all about Money! In Kenya, we call it pesa. It's in our pockets, in our parents' M-Pesa accounts, and it helps us buy everything from a smokie pasua after school to the new school shoes you need. Understanding money is a superpower! It helps you shop smartly, save for your dreams, and even start your own small business one day. So, are you ready to become a money master? Let's begin!

Getting to Know Our Coins and Notes

The money we use in Kenya is called the Kenyan Shilling (Ksh). It comes in two forms: coins for smaller amounts and notes for larger amounts. Let's meet them!

• Coins: We have the 1 shilling (bob), 5 shillings, 10 shillings, and 20 shillings coins. They are great for buying sweets, a single mandazi, or paying for short matatu trips.
• Notes: These are the colourful paper money! We have the 50, 100, 200, 500, and the big 1000 shillings note. These are used for weekly shopping, paying bills, or buying bigger things like a new school bag.

Image Suggestion: A bright, top-down photograph of all the current Kenyan Shilling notes and coins neatly arranged on a wooden table. The notes should be crisp and the coins shiny, with a vibrant, colourful, and educational style.

ASCII Art: Our Coins
  .--.      .--.      .--.
 / 1  \    / 5  \    / 10 \
| Ksh |   | Ksh |   | Ksh  |
 \    /    \    /    \    /
  `--'      `--'      `--'

Let's Do the Math! Everyday Money Calculations

Math and money go together like ugali and sukuma wiki! You use it every single day without even thinking. Let's break it down.

1. Addition and Subtraction (Shopping at the Duka)

This is what you do when you buy items and get your change back.

Real-World Scenario: Your mum gives you a Ksh 200 note and sends you to the local duka. She asks you to buy a loaf of bread for Ksh 65 and a packet of milk for Ksh 60. How much will you spend, and how much change will you bring back?

Step 1: Find the total cost of the items (Addition).

   65  (Cost of bread)
+  60  (Cost of milk)
------
  125  (Total cost in Ksh)

Step 2: Find the change (Subtraction).

  200  (Money you had)
- 125  (Money you spent)
------
   75  (Your change in Ksh)

Well done! You will bring back Ksh 75 to your mum.

2. Multiplication and Division (Planning and Sharing)

Multiplication helps you find the cost of many items, while division helps you share costs.

Real-World Scenario: A new exercise book for school costs Ksh 40. You need to buy 5 of them for your different subjects. How much money do you need?

Calculation (Multiplication):

Cost of one book: Ksh 40
Number of books:    5

Total Cost = 40 x 5 = 200

You will need Ksh 200 to buy all the books.

The World of Business: Profit and Loss

Have you ever thought about selling something to make money? That's business! In business, there are two very important ideas: Profit and Loss.

• Buying Price (BP): The money you spend to buy or make something. This is your cost.
• Selling Price (SP): The money you get when you sell that item.

If your Selling Price is more than your Buying Price, you have made a PROFIT! 🎉 (SP > BP = Profit)

If your Selling Price is less than your Buying Price, you have made a LOSS. 😟 (SP < BP = Loss)

Image Suggestion: A simple, clear infographic with two paths. Path 1: "Buying Price (Ksh 100)" leads upwards with a green arrow to "Selling Price (Ksh 150)" and a big smiley face labeled "PROFIT!". Path 2: "Buying Price (Ksh 100)" leads downwards with a red arrow to "Selling Price (Ksh 80)" and a sad face labeled "LOSS!".

Let's Help Juma: Your friend Juma decides to sell mangoes. He buys a bag of 10 mangoes from the market for Ksh 150 (this is his Buying Price). He then sells each mango for Ksh 20. Did he make a profit or a loss?

Step 1: Find Juma's total Selling Price (SP).
He has 10 mangoes and sells each for Ksh 20.
Total SP = 10 x 20 = Ksh 200

Step 2: Compare the SP and BP.
Selling Price (SP) = Ksh 200
Buying Price (BP) = Ksh 150

Since SP (200) is greater than BP (150), Juma made a PROFIT.

Step 3: Calculate the profit.
Profit = Selling Price - Buying Price
Profit = 200 - 150
Profit = Ksh 50

Fantastic! Juma made a profit of Ksh 50 for his hard work.

Smart Money: Your First Budget

A budget is simply a plan for your money. It tells your money where to go instead of you wondering where it went! It's the first step to saving for something you really want, like a new football or a storybook.

Let's create a simple weekly budget for your pocket money.

Scenario: You receive Ksh 250 for the week as pocket money. You know you need money for a snack every day at school and for your transport on Friday. You also want to save some money.

+------------------------------------+
|   MY WEEKLY BUDGET (Total: Ksh 250)  |
+----------------------+-------------+
|        EXPENSE       |  AMOUNT (Ksh) |
+----------------------+-------------+
| Daily Snack (20x5)   |     100     |
| Friday Matatu Fare   |      50     |
| Treat (Ice Cream)    |      50     |
| Savings for my Goal! |      50     |
+----------------------+-------------+
|         TOTAL        |     250     |
+----------------------+-------------+

Look at that! By planning, you can cover all your needs, have a small treat, and still save Ksh 50! That's how you become a smart money manager.

You Are Now a Money Master!

Amazing work! Today, you have learned how to identify our Kenyan currency, use it in calculations, understand the basics of business with profit and loss, and even create your first budget. Money is a tool, and now you have the skills to use it wisely. Keep practicing every time you go to the shop or handle your pocket money. You are on your way to becoming a financial guru!

Habari Mwanafunzi! Let's Talk About Money!

Have you ever saved up your pocket money to buy a new storybook, a cool toy, or maybe some tasty snacks like smokie pasua after school? Of course, you have! The coins and notes you use are what we call money. But money is more than just paper and metal; it's a powerful tool for measuring the value of things. In Kenya, our money is the Shilling (Ksh). Today, we're going to become experts at understanding and using it. Let's get started!

Our Kenyan Shillings and Cents

Just like we measure distance in metres and centimetres, we measure money in shillings and cents. Remember this important fact: 100 cents make 1 Shilling.

Our currency comes in two forms:

• Coins: These are the metal pieces we use for smaller amounts. We have coins for 1 shilling, 5 shillings, 10 shillings, and 20 shillings.
• Notes: These are the colourful "paper" money for larger amounts. We have notes for 50, 100, 200, 500, and 1000 shillings.

   +-----------------+         /------------------\
   |      KSH        |        (      KENYA       )
   |       1         |        |       KSH        |
   |     SHILLING    |        |        50        |
   +-----------------+        |                  |
       (A Coin)               |   SHILINGI       |
                              |     HAMSINI      |
                              \__________________/
                                   (A Note)

Image Suggestion: A vibrant, top-down photograph of all the current Kenyan currency notes (50, 100, 200, 500, 1000) and coins (1, 5, 10, 20) neatly arranged on a wooden table. The lighting should be bright and clear.

Everyday Math: Working with Money

Using money involves the same math skills you use every day: addition, subtraction, multiplication, and division. Let’s see how.

Real-World Scenario: A Trip to the Duka

Amina is sent to the local duka (shop) by her mother. She needs to buy a loaf of bread for Ksh 60, a packet of milk for Ksh 55, and two pencils that cost Ksh 10 each. Her mother gives her a 200 shilling note. How much change will she get?

Let's break this down step-by-step!

Step 1: Calculate the total cost of the items.
   - Cost of 2 pencils: 2 x Ksh 10 = Ksh 20
   - Total Cost = (Cost of Bread) + (Cost of Milk) + (Cost of Pencils)
   - Total Cost = Ksh 60 + Ksh 55 + Ksh 20
   - Total Cost = Ksh 135

Step 2: Calculate the change.
   - Change = (Money Given) - (Total Cost)
   - Change = Ksh 200 - Ksh 135
   - Change = Ksh 65

Answer: Amina will get Ksh 65 in change.

The Language of Business: Profit and Loss

Have you ever thought about how shopkeepers make money? They use the concepts of Profit and Loss. It's simple!

• Cost Price (C.P.): This is the price a seller buys an item for.
• Selling Price (S.P.): This is the price the seller sells the item for.

If the Selling Price is higher than the Cost Price, the seller makes a Profit. If it's lower, they make a Loss.

Formula for Profit:
Profit = Selling Price (S.P.) - Cost Price (C.P.)

Formula for Loss:
Loss = Cost Price (C.P.) - Selling Price (S.P.)

Example: Juma's Mandazi Business

Juma buys ingredients to make 50 mandazis. The ingredients cost him Ksh 250 in total (this is his Cost Price). He sells each mandazi for Ksh 10. Did he make a profit or a loss, and by how much?

Step 1: Find the total Selling Price (S.P.).
   - He sold 50 mandazis at Ksh 10 each.
   - Total S.P. = 50 x 10 = Ksh 500

Step 2: Find the Cost Price (C.P.).
   - The cost of ingredients was Ksh 250.

Step 3: Compare S.P. and C.P. to find the profit.
   - The S.P. (Ksh 500) is greater than the C.P. (Ksh 250), so Juma made a profit.
   - Profit = S.P. - C.P.
   - Profit = 500 - 250 = Ksh 250

Answer: Juma made a profit of Ksh 250. Well done, Juma!

Image Suggestion: A warm and inviting illustration of a young Kenyan entrepreneur like Juma, smiling behind a small table selling delicious-looking mandazis to other students during a school break time.

Everyone Loves a Discount!

A discount is a reduction in the normal price of an item. You often see signs like "20% OFF!" during sales. Let's learn how to calculate your savings.

Imagine you want to buy a pair of shoes that costs Ksh 2,000. The shop has a 15% discount. How much will you pay?

Step 1: Calculate the discount amount.
   - Discount = 15% of Ksh 2,000
   - Discount = (15 / 100) * 2000
   - Discount = 0.15 * 2000
   - Discount = Ksh 300

Step 2: Calculate the new price.
   - New Price = Original Price - Discount Amount
   - New Price = 2000 - 300
   - New Price = Ksh 1,700

Answer: You will pay Ksh 1,700 for the shoes. You saved Ksh 300!

Making Your Money Grow: Simple Interest

What if you want to save your money for something big in the future? You can put it in a bank or a Sacco. To thank you for saving with them, they give you a little extra money called Interest. The easiest type to calculate is Simple Interest.

Here are the key terms:

• Principal (P): The starting amount of money you save.
• Rate (R): The percentage of interest given per year (%).
• Time (T): How long you save the money for, in years.

[Start with Principal (P)] --> [Save for Time (T) years] --> [At an Interest Rate (R)%]
         |                                                               |
         |                                                               V
         +-------------------> [Calculate Interest (I = P*R*T / 100)] ---+
                                                                         |
                                                                         V
                                        [Total Amount = Principal + Interest]

Let's say you save Ksh 5,000 (P) in a Sacco that gives you a rate of 8% per year (R). You leave it there for 3 years (T). How much interest will you earn?

Formula: Simple Interest (S.I.) = (P x R x T) / 100

Step 1: Substitute the values into the formula.
   - S.I. = (5000 x 8 x 3) / 100

Step 2: Calculate the result.
   - S.I. = 120,000 / 100
   - S.I. = Ksh 1,200

Step 3: Find the total amount in your account.
   - Total Amount = Principal + Interest
   - Total Amount = 5000 + 1200 = Ksh 6,200

Answer: After 3 years, you will have earned Ksh 1,200 in interest, and your total savings will be Ksh 6,200! Your money grew without you doing any extra work!

You are now a Money Master!

Fantastic work! Today, you've learned how to perform calculations with money, understand the business ideas of profit and loss, find the best deals with discounts, and even how to make your money grow with simple interest.

Money is an important part of our lives, and knowing how to manage it is a superpower. Keep practicing, stay curious, and you'll be making smart money decisions for the rest of your life. Hongera! (Congratulations!)

Pesa Mfukoni! A Guide to Mastering Money

Habari mwanafunzi! Welcome to a very exciting topic: Money. We use it every single day. From buying a snack at the school canteen, paying your bus fare (nauli), to saving up for that new pair of shoes you want. Understanding money is not just about counting; it's a superpower that helps you make smart decisions in life. Let's dive in and learn how to become a master of the Kenyan Shilling (Ksh)!

Image Suggestion: A vibrant and colourful illustration of a Kenyan marketplace. In the foreground, a student is happily receiving a coin as change from a friendly Mama Mboga (vegetable vendor). In the background, there are matatus, people using M-Pesa on their phones, and various shops, all under a bright Kenyan sun.

The Building Blocks: Coins and Notes

In Kenya, our money, the Shilling, comes in two forms: coins (sarafu) and notes (noti). It's important to know them all!

• Coins: We commonly use 1 shilling, 5 shillings, 10 shillings, and 20 shillings coins.
• Notes: You will see 50 shillings, 100 shillings, 200 shillings, 500 shillings, and the big 1,000 shillings note.

    +------+          +-----------------+
    |      |          |                 |
    | (20) |          |      Ksh 50     |
    | Ksh  |          |                 |
    +------+          +-----------------+
     A Coin               A Bank Note

Everyday Math: Addition, Subtraction, and Change

This is where your math skills come alive! Every time you buy something, you are doing addition and subtraction.

Scenario: Juma goes to the local duka (shop) to buy a few items for his mother. He buys a packet of milk for Ksh 60, a loaf of bread for Ksh 55, and a packet of biscuits for Ksh 25.

1. How much will Juma pay in total? (Addition)

To find the total cost, we add the price of all the items.

    Step 1: List the prices of the items.
    Milk      = 60/=
    Bread     = 55/=
    Biscuits  = 25/=

    Step 2: Add the numbers together.
      60
      55
    + 25
    ----
     140

    Answer: Juma will pay a total of Ksh 140.

2. Calculating Change (Subtraction)

Juma gives the shopkeeper a Ksh 200 note. How much change should he get back?

    Step 1: Note the amount paid and the total cost.
    Amount Paid    = 200/=
    Total Cost     = 140/=

    Step 2: Subtract the cost from the amount paid.
    Change = Amount Paid - Total Cost
    Change = 200 - 140

      200
    - 140
    -----
       60

    Answer: Juma should receive Ksh 60 in change.

Profit and Loss: The Heart of Business

Have you ever wondered how shopkeepers make money? They use the concepts of Profit and Loss. It's simple!

• Buying Price (BP): The price at which a seller buys goods. This is their cost.
• Selling Price (SP): The price at which the seller sells the goods to customers.

A profit is made when the Selling Price is higher than the Buying Price (SP > BP). It's the extra money earned!

Example: Mama Aisha makes delicious mandazi. She spends Ksh 200 on flour, sugar, and oil to make a batch. After selling all the mandazi, she has made Ksh 350.

    Formula: Profit = Selling Price (SP) - Buying Price (BP)

    Calculation:
    Profit = 350 - 200
    Profit = 150

    Answer: Mama Aisha made a profit of Ksh 150. Well done!

A loss happens when the Selling Price is lower than the Buying Price (SP < BP). This means the seller lost money.

Example: Mr. Omondi, a farmer, buys a crate of tomatoes for Ksh 500 to sell at the market. It rains heavily, and not many customers come. To sell them before they spoil, he sells the whole crate for Ksh 400.

    Formula: Loss = Buying Price (BP) - Selling Price (SP)

    Calculation:
    Loss = 500 - 400
    Loss = 100

    Answer: Mr. Omondi made a loss of Ksh 100.

Image Suggestion: A split-screen digital art image. On the left side, a smiling Mama Aisha is standing by her stall of mandazi, with a bright green upward arrow and the text 'PROFIT! Ksh 150'. On the right side, a slightly sad Mr. Omondi is looking at his crate of tomatoes under a rainy cloud, with a red downward arrow and the text 'LOSS. Ksh 100'.

Discounts: The Joy of a Good Bargain!

Who doesn't love a sale? A discount is a reduction in the usual price of an item. It's often given as a percentage (%).

Scenario: It's "Back to School" season! A school bag that normally costs Ksh 1,200 is being sold with a 10% discount. What is the new price?

    Step 1: Find the discount amount.
    Discount Amount = 10% of Ksh 1,200
                    = (10 / 100) * 1200
                    = 0.1 * 1200
                    = 120

    The discount is Ksh 120.

    Step 2: Find the new price.
    New Price = Original Price - Discount Amount
              = 1200 - 120
              = 1080

    Answer: The new price of the school bag is Ksh 1,080.

Simple Interest: Watch Your Money Grow!

Saving money is a very wise thing to do. When you put your money in a bank or a Sacco, they pay you a small amount extra for keeping it with them. This is called Interest.

• Principal (P): The initial amount of money you save.
• Rate (R): The percentage at which the interest is calculated per year.
• Time (T): The duration for which the money is saved (in years).

The formula for Simple Interest is one of the most famous in mathematics!

    Simple Interest (I) = Principal × Rate × Time
                      I = P × R × T

    Note: The Rate is usually a percentage, so you must write it as a fraction.
          e.g., 5% = 5/100

Example: Fatuma wins Ksh 5,000 in a school competition. She deposits it in a bank account that offers a simple interest rate of 4% per year. How much interest will she earn after 2 years?

    Step 1: Identify P, R, and T.
    Principal (P) = 5,000
    Rate (R)      = 4% = 4/100
    Time (T)      = 2 years

    Step 2: Use the formula I = P * R * T
    Interest = 5000 * (4/100) * 2
             = (5000 * 4 * 2) / 100
             = 40000 / 100
             = 400

    Answer: Fatuma will earn Ksh 400 in interest after 2 years.

    Step 3 (Bonus!): What is the total amount in her account?
    Total Amount = Principal + Interest
                 = 5000 + 400
                 = 5400

    After two years, Fatuma will have Ksh 5,400 in her account!

    ASCII Diagram: Growing Savings

    Year 0             Year 1             Year 2
    +-------+          +-------+          +-------+
    | Ksh   | --TIME-> | Ksh   | --TIME-> | Ksh   |
    | 5,000 | +Interest| 5,200 | +Interest| 5,400 |
    +-------+          +-------+          +-------+
    (Principal)      (Grows...)         (Final Amount)

You are a Money Master!

Congratulations! You have just learned the essential mathematics of money. From calculating your change at the duka, understanding how businesses work with profit and loss, finding the best deals with discounts, to even learning how to grow your savings with interest. This knowledge is powerful!

Keep practicing these skills. The more you use them, the more confident you will become. Remember, being smart with money starts with understanding the math behind it. Go on and be a financial whiz!