Co-funded by the Erasmus+ Programme of the European Union Project No.: 2024-1-PL01-KA220-YOU-000251498
GAMEY Project: Gamified Approach to Money Education for Youth
MODULE 4: TYPES OF INCOME AND TAX EDUCATION
Let's go!
Agenda
- Module’s Objective
- Types of Income
- How to manage income
- Understanding Taxes
- Wrap-Up – What Did We Learn?
Continue
What will you learn?
Knowledge:
- The elements of personal finance including income, expenses, savings
- The basic concepts of taxation and its role in society
- The different types of income and the taxes related to them
- Various financial instruments and how they relate to income generation
- The fundamentals of financial psychology (behavioural aspects of earning, spending, saving)
Continue
What will you learn?
Attitudes:
- Empathy for others and social responsibility
- Ethics and integrity in financial decisions
- Patience, curiosity, and a willingness to update financial knowledge
- Clear communication about money matters
- Active engagement in learning and exploring new financial tools
Continue
What will you learn?
Skills:
- Understand key tax laws and mechanisms that affect individuals and households
- Identify one’s duties as a taxpayer and how taxes are collected and used by the state
- Understand the risks of tax evasion and the difference between legal tax avoidance and illegal tax evasion
- Track and manage one’s income, separate needs, wants and savings, and monitor expenses
Continue
Module's Objective
The goal of Module 4: Types of Income and Tax Education is to help learners understand how money moves in real life — how it is earned, managed, and shared through taxes for the common good. Through Rob’s story and interactive activities, learners will: - Recognize different types of income — earned, portfolio, and passive — and understand how each contributes to personal financial stability.
- Learn how to manage income wisely by distinguishing between needs, wants, and savings, and by tracking personal expenses to make responsible spending choices.
- Explore the purpose of taxes — why citizens pay them, how they are collected, and how they fund essential public services such as education, healthcare, and infrastructure.
- Identify different forms of taxation, including direct and indirect taxes, and understand their relationship to fairness, equality, and responsible citizenship.
- Reflect on ethical and social aspects of finance, recognizing that responsible earning and fair tax contribution build stronger, more equitable communities.
Continue
Types of Income
Continue
Rob just started his first part-time job. He’s earning money — but now he’s hearing about “income types” and “taxes.” Help Rob understand how money flows and why it matters!
Income is the money you earn or receive from work, investments, or other sources. It’s what allows you to spend, save, and plan for your goals.
Taxes are the part of your income that you contribute to society. Governments use taxes to build schools, hospitals, roads, and services for everyone.
Use this side of the card to provide more information about a topic. Focus on one concept. Make learning and communication more efficient.
Tax
Title
Income
Write a brief description here
Continue
Types of Income
Not all income is the same — can you tell which type each one is?
📈 Portfolio Income
💼 Earned Income
🏠 Passive Income
Continue
Income is more than just money you earn — it’s the starting point of your financial journey. It determines how you live today and how much freedom you’ll have tomorrow. Economists define income as the money or value you receive over time for providing labor, owning assets, or making investments. In practice, there are three main engines of income — each plays a different role in your life: 1️⃣ Earned Income – “Work for Money” 2️⃣ Portfolio Income – “Money Works for You” 3️⃣ Passive Income – “Systems That Keep Paying” Together, these income types create financial resilience — if one source stops, others keep supporting you. Diversifying your income is like planting different seeds: some grow fast, others slowly, but all contribute to your garden of financial security.
Continue
Types of Income in detail
EARNED INCOME
CAPITAL INCOME
BUSINESS INCOME
OCCASIONAL OR OTHER INCOME
PENSION INCOME
Derives from the holding of capital or investments, such as bank interest, stock dividends, or rent received.
Income received in exchange for work. It can be from employment (salary) or self-employment (fees, fees, compensation).
Generated by an entrepreneurial activity, in which the economic risk is assumed by the person carrying out the activity.
Received by those who have ceased working after accruing social security contributions.
Refers to non-continuous income, such as winnings, prizes, or the sale of non-routine goods.
Continue
From Earning to Managing: The Smart Way to Use Your Income
Continue
Rob’s First Paycheck: Spend or Plan?
Rob has just received his first salary: €1,000 from his new part-time job. He feels great! He’s thinking about: 🧥 Buying new clothes 🎮 Getting a game console 💳 Paying rent and food 💰 Saving for a trip with friends But Rob can’t afford everything.
Continue
Continue
After thinking it through, Rob decided not to spend all his €1,000 at once. He realized that some expenses are essential, others are optional, and part of his income should be saved for the future. This is how he discovered the 3 Golden Rules of Managing Income
Needs
Wants
Savings
Continue
Continue
How to Track Your Expenses
Rob has learned how to plan his income — now he wants to see where his money actually goes each month. Tracking expenses helps you stay in control, spot habits, and reach your goals faster.
Continue
Understanding Taxes: Where Does Our Money Go?
Continue
After tracking his expenses for a month, Rob notices something strange on his payslip —a part of his income is missing!
TAXES
Continue
Continue
Continue
Rob now understands why we pay taxes — but he’s curious about how they work. There are different kinds of taxes, each serving a different purpose. Let’s explore them in his next mission!
Continue
DIRECT TAX
INDIRECT TAX
DUTIES
TAXES
Continue
Types of Taxes: How the System Works
Income Tax
Social Contributions
Local & Environmental Taxes
VAT (Value Added Tax)
Continue
DIRECT TAX
INDIRECT TAX
💼 Income Tax
🏠 Property Tax
🏢 Corporate Tax
🛍️ Value Added Tax (VAT)
⛽ Excise Duty
🧾 Customs Duty
Continue
00:10
Continue
Fiscal Education: goals
Knowledge of tax laws
Knowledge of one's duties as a taxpayer
Recognize the social and ethical consequences of tax evasion.
Knowledge of the mechanisms that regulate the collection and use of taxes by the State.
Continue
Continue
'Paying taxes is not a burden, but an investment in the future of all of us'
Continue
Wrap-Up – What Did We Learn?
Continue
Congratulations! 🎉 You’ve guided Rob through his financial adventure and discovered how money really works. Along the way, you learned to: ✅ Recognize the 3 Types of Income — Earned, Portfolio, and Passive. ✅ Manage Money Wisely — Balance Needs, Wants, and Savings. ✅ Understand Taxes — Know why we pay them and how they support everyone. ✅ Be a Responsible Citizen — Use money not just for yourself, but to strengthen your community. You now understand that financial education isn’t only about earning — it’s about planning, sharing, and building a fair future.
Continue
Resources
- OECD – Financial Literacy for Youth: Clear explanations and activities that help young people understand money, saving, and responsible financial choices.
- European Money Quiz (EBF): A fun online quiz to test your knowledge about income, spending, and saving. Perfect for students!
- Practical Money Skills: Games, videos, and lessons that teach budgeting, spending, and taxes in a simple way.
- Junior Achievement Europe – Financial Education Programs: Real-world financial learning experiences for young people across Europe.
- OECD Tax and You – For Students: Learn what taxes are, why we pay them, and how they build our societies.
- European Commission – Taxes in the EU: Simple overview of tax systems in Europe, including direct and indirect taxes.
- Your Europe – Starting Work Guide: Everything young citizens need to know about working legally, payslips, and taxes.
Continue
Co-funded by the Erasmus+ Programme of the European Union Project No.: 2024-1-PL01-KA220-YOU-000251498
Thank you!
Start
Earned Income
Money you receive in exchange for your work or time. It’s your salary, hourly wage, or freelance payment. Rob earns €1000 per month working at a café.
Portfolio Income
Money that comes from your investments — when your money works for you. It includes profits from stocks, dividends, or interest on savings. Rob earns €50 in interest from his savings account. Remember: Portfolio income often requires knowledge and patience, but it can grow over time.
Passive Income
Money that keeps coming in after the initial work is done. You earn even when you’re not actively working. Rob rents his old bike for €10 a week. Others earn passive income from renting property or selling digital products. Remember: Passive income gives freedom and stability, but it takes effort to build first.
Needs – The Must-Haves
These are things you can’t live without. Rent, food, transportation, basic bills, school materials. They keep your life stable and secure.
Wants – The Nice-to-Haves
Things that make life more enjoyable but aren’t essential. New clothes, snacks, concerts, games. It’s okay to spend on wants :)
Savings – The Future You
Money you keep for future goals or emergencies. A trip, a course, or even unexpected expenses. Saving regularly helps you build freedom and peace of mind.
Write it down
Use a small notebook or notes app. Write every time you spend — even small amounts. Seeing your expenses makes them real.
Use a simple app
Free apps like Money Manager, Wallet, or even Google Sheets help you track and total your expenses automatically.
Review & adjust
At the end of each week, check your spending. Are your wants growing too much? Can you save more next month? Small changes make big differences.
What Are Taxes?
Taxes are mandatory payments that citizens and businesses make to the government. They’re part of a social agreement: we all contribute a little so that everyone can benefit from essential public services. Without taxes, governments couldn’t fund schools, hospitals, or safety systems. Taxes are a way of transforming private income into public good.
Why Do We Pay Them?
Taxes are used to finance the common needs of society — education, healthcare, infrastructure, and social protection. Every time you walk on a road, visit a public park, attend a public school, or see a doctor, taxes are at work. Paying taxes is how citizens share responsibility for the well-being of their community.
How Do They Work?
People contribute based on how much they earn — this is called progressive taxation. Those who have more, contribute more, ensuring fairness and social balance. Governments then distribute these funds to provide services for everyone. When taxes are used wisely and transparently, they help create equality and trust between citizens and institutions.
Income Tax
This is the tax on the money you earn from work or other sources. The more you earn, the more you contribute — this is called a progressive system. For example, Rob pays a small percentage of his salary to help fund schools and healthcare. People with higher incomes pay a larger percentage so that everyone can have access to essential services.
VAT (Value Added Tax)
Every time you buy a product or service, a small part of the price goes to taxes. This is called Value Added Tax (VAT). It’s included in most prices — from your snack to your concert ticket. It helps fund public infrastructure and community projects. Rob pays VAT when he buys his new bike helmet or eats at a restaurant.
Social Contributions
These are taxes that go directly to social security systems — pensions, unemployment benefits, and healthcare. When Rob’s parents go to the doctor or receive family support, it’s funded by these contributions. Paying them helps protect people when they are sick, unemployed, or retired.
Local & Environmental Taxes
These taxes are collected by local governments to keep cities running smoothly — like waste collection, public transport, and green spaces. They can also include taxes on pollution or fuel to encourage environmentally friendly behavior. Rob pays these indirectly when he uses public transport or enjoys a clean park.
4. GAMEY Project - reviewed
Linking Foundation
Created on November 17, 2025
Start designing with a free template
Discover more than 1500 professional designs like these:
View
Smart Presentation
View
Practical Presentation
View
Essential Presentation
View
Akihabara Presentation
View
Flow Presentation
View
Dynamic Visual Presentation
View
Pastel Color Presentation
Explore all templates
Transcript
Co-funded by the Erasmus+ Programme of the European Union Project No.: 2024-1-PL01-KA220-YOU-000251498
GAMEY Project: Gamified Approach to Money Education for Youth
MODULE 4: TYPES OF INCOME AND TAX EDUCATION
Let's go!
Agenda
Continue
What will you learn?
Knowledge:
Continue
What will you learn?
Attitudes:
Continue
What will you learn?
Skills:
Continue
Module's Objective
The goal of Module 4: Types of Income and Tax Education is to help learners understand how money moves in real life — how it is earned, managed, and shared through taxes for the common good. Through Rob’s story and interactive activities, learners will:- Recognize different types of income — earned, portfolio, and passive — and understand how each contributes to personal financial stability.
- Learn how to manage income wisely by distinguishing between needs, wants, and savings, and by tracking personal expenses to make responsible spending choices.
- Explore the purpose of taxes — why citizens pay them, how they are collected, and how they fund essential public services such as education, healthcare, and infrastructure.
- Identify different forms of taxation, including direct and indirect taxes, and understand their relationship to fairness, equality, and responsible citizenship.
- Reflect on ethical and social aspects of finance, recognizing that responsible earning and fair tax contribution build stronger, more equitable communities.
Continue
Types of Income
Continue
Rob just started his first part-time job. He’s earning money — but now he’s hearing about “income types” and “taxes.” Help Rob understand how money flows and why it matters!
Income is the money you earn or receive from work, investments, or other sources. It’s what allows you to spend, save, and plan for your goals.
Taxes are the part of your income that you contribute to society. Governments use taxes to build schools, hospitals, roads, and services for everyone.
Use this side of the card to provide more information about a topic. Focus on one concept. Make learning and communication more efficient.
Tax
Title
Income
Write a brief description here
Continue
Types of Income
Not all income is the same — can you tell which type each one is?
📈 Portfolio Income
💼 Earned Income
🏠 Passive Income
Continue
Income is more than just money you earn — it’s the starting point of your financial journey. It determines how you live today and how much freedom you’ll have tomorrow. Economists define income as the money or value you receive over time for providing labor, owning assets, or making investments. In practice, there are three main engines of income — each plays a different role in your life: 1️⃣ Earned Income – “Work for Money” 2️⃣ Portfolio Income – “Money Works for You” 3️⃣ Passive Income – “Systems That Keep Paying” Together, these income types create financial resilience — if one source stops, others keep supporting you. Diversifying your income is like planting different seeds: some grow fast, others slowly, but all contribute to your garden of financial security.
Continue
Types of Income in detail
EARNED INCOME
CAPITAL INCOME
BUSINESS INCOME
OCCASIONAL OR OTHER INCOME
PENSION INCOME
Derives from the holding of capital or investments, such as bank interest, stock dividends, or rent received.
Income received in exchange for work. It can be from employment (salary) or self-employment (fees, fees, compensation).
Generated by an entrepreneurial activity, in which the economic risk is assumed by the person carrying out the activity.
Received by those who have ceased working after accruing social security contributions.
Refers to non-continuous income, such as winnings, prizes, or the sale of non-routine goods.
Continue
From Earning to Managing: The Smart Way to Use Your Income
Continue
Rob’s First Paycheck: Spend or Plan?
Rob has just received his first salary: €1,000 from his new part-time job. He feels great! He’s thinking about: 🧥 Buying new clothes 🎮 Getting a game console 💳 Paying rent and food 💰 Saving for a trip with friends But Rob can’t afford everything.
Continue
Continue
After thinking it through, Rob decided not to spend all his €1,000 at once. He realized that some expenses are essential, others are optional, and part of his income should be saved for the future. This is how he discovered the 3 Golden Rules of Managing Income
Needs
Wants
Savings
Continue
Continue
How to Track Your Expenses
Rob has learned how to plan his income — now he wants to see where his money actually goes each month. Tracking expenses helps you stay in control, spot habits, and reach your goals faster.
Continue
Understanding Taxes: Where Does Our Money Go?
Continue
After tracking his expenses for a month, Rob notices something strange on his payslip —a part of his income is missing!
TAXES
Continue
Continue
Continue
Rob now understands why we pay taxes — but he’s curious about how they work. There are different kinds of taxes, each serving a different purpose. Let’s explore them in his next mission!
Continue
DIRECT TAX
INDIRECT TAX
DUTIES
TAXES
Continue
Types of Taxes: How the System Works
Income Tax
Social Contributions
Local & Environmental Taxes
VAT (Value Added Tax)
Continue
DIRECT TAX
INDIRECT TAX
💼 Income Tax
🏠 Property Tax
🏢 Corporate Tax
🛍️ Value Added Tax (VAT)
⛽ Excise Duty
🧾 Customs Duty
Continue
00:10
Continue
Fiscal Education: goals
Knowledge of tax laws
Knowledge of one's duties as a taxpayer
Recognize the social and ethical consequences of tax evasion.
Knowledge of the mechanisms that regulate the collection and use of taxes by the State.
Continue
Continue
'Paying taxes is not a burden, but an investment in the future of all of us'
Continue
Wrap-Up – What Did We Learn?
Continue
Congratulations! 🎉 You’ve guided Rob through his financial adventure and discovered how money really works. Along the way, you learned to: ✅ Recognize the 3 Types of Income — Earned, Portfolio, and Passive. ✅ Manage Money Wisely — Balance Needs, Wants, and Savings. ✅ Understand Taxes — Know why we pay them and how they support everyone. ✅ Be a Responsible Citizen — Use money not just for yourself, but to strengthen your community. You now understand that financial education isn’t only about earning — it’s about planning, sharing, and building a fair future.
Continue
Resources
Continue
Co-funded by the Erasmus+ Programme of the European Union Project No.: 2024-1-PL01-KA220-YOU-000251498
Thank you!
Start
Earned Income
Money you receive in exchange for your work or time. It’s your salary, hourly wage, or freelance payment. Rob earns €1000 per month working at a café.
Portfolio Income
Money that comes from your investments — when your money works for you. It includes profits from stocks, dividends, or interest on savings. Rob earns €50 in interest from his savings account. Remember: Portfolio income often requires knowledge and patience, but it can grow over time.
Passive Income
Money that keeps coming in after the initial work is done. You earn even when you’re not actively working. Rob rents his old bike for €10 a week. Others earn passive income from renting property or selling digital products. Remember: Passive income gives freedom and stability, but it takes effort to build first.
Needs – The Must-Haves
These are things you can’t live without. Rent, food, transportation, basic bills, school materials. They keep your life stable and secure.
Wants – The Nice-to-Haves
Things that make life more enjoyable but aren’t essential. New clothes, snacks, concerts, games. It’s okay to spend on wants :)
Savings – The Future You
Money you keep for future goals or emergencies. A trip, a course, or even unexpected expenses. Saving regularly helps you build freedom and peace of mind.
Write it down
Use a small notebook or notes app. Write every time you spend — even small amounts. Seeing your expenses makes them real.
Use a simple app
Free apps like Money Manager, Wallet, or even Google Sheets help you track and total your expenses automatically.
Review & adjust
At the end of each week, check your spending. Are your wants growing too much? Can you save more next month? Small changes make big differences.
What Are Taxes?
Taxes are mandatory payments that citizens and businesses make to the government. They’re part of a social agreement: we all contribute a little so that everyone can benefit from essential public services. Without taxes, governments couldn’t fund schools, hospitals, or safety systems. Taxes are a way of transforming private income into public good.
Why Do We Pay Them?
Taxes are used to finance the common needs of society — education, healthcare, infrastructure, and social protection. Every time you walk on a road, visit a public park, attend a public school, or see a doctor, taxes are at work. Paying taxes is how citizens share responsibility for the well-being of their community.
How Do They Work?
People contribute based on how much they earn — this is called progressive taxation. Those who have more, contribute more, ensuring fairness and social balance. Governments then distribute these funds to provide services for everyone. When taxes are used wisely and transparently, they help create equality and trust between citizens and institutions.
Income Tax
This is the tax on the money you earn from work or other sources. The more you earn, the more you contribute — this is called a progressive system. For example, Rob pays a small percentage of his salary to help fund schools and healthcare. People with higher incomes pay a larger percentage so that everyone can have access to essential services.
VAT (Value Added Tax)
Every time you buy a product or service, a small part of the price goes to taxes. This is called Value Added Tax (VAT). It’s included in most prices — from your snack to your concert ticket. It helps fund public infrastructure and community projects. Rob pays VAT when he buys his new bike helmet or eats at a restaurant.
Social Contributions
These are taxes that go directly to social security systems — pensions, unemployment benefits, and healthcare. When Rob’s parents go to the doctor or receive family support, it’s funded by these contributions. Paying them helps protect people when they are sick, unemployed, or retired.
Local & Environmental Taxes
These taxes are collected by local governments to keep cities running smoothly — like waste collection, public transport, and green spaces. They can also include taxes on pollution or fuel to encourage environmentally friendly behavior. Rob pays these indirectly when he uses public transport or enjoys a clean park.