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LESSON: MY ROWS AND PILES OF
COINS
Lesson Summary
Saruni
empties his secret money box and arranges the coins into piles and the
piles into rows. He is saving to invest in something special. How happy
and proud he will be when he can help his mother carry heavy goods to
market on his very own bicycle!
Concept: Investing
Definition: Investing occurs when people and
businesses use money to purchase capital goods or to increase the
skills and abilities of workers.
Comprehension Questions
How did
Saruni obtain his money?
His mother gave him the coins for the
services he provided by helping her with market work on
Saturdays.
What
were some of the goods Saruni could buy in the market with his
money?
He could buy roasted peanuts, chapati, rice cakes, sambusa,
wooden toy trucks, kites, slingshots, and marbles, or he could save
the money to buy a bicycle.
What
kind of special good is the bicycle?
The bicycle is a capital
good.
How is
a capital good different from the other consumer goods in the
market?
Capital goods are used to produce other goods and services.
The bicycle would help Saruni's mother sell more of her goods in the
market.
What
good did he decide to buy?
He decided to invest his savings by
buying a bicycle to help his mother carry the heavy goods to the
market.
Did
Saruni buy the bicycle?
No
How did Saruni get the
bicycle?
The price was too high. His father, Murette, took
Saruni's money and gave him his old bicycle because Murette had
bought a new motorbike. However, through Yeyo, Murette gave the money
back to Saruni.
How did
Saruni plan to use the bicycle?
He used it to help his mother
carry heavy goods to market. He purchased a capital good by investing in
the bicycle.
Was
Saruni happy with just a bicycle?
No, he would also like to have a
cart to pull behind his bicycle so that he could lighten his mother's
load. Saruni would like to invest in another capital good.
Other Concepts: Market, Goods and
Services, Opportunity
Cost, Trade and
Money, Capital Resources
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