Costs & Revenue

CONCEPTUAL

Life Skills›Entrepreneurship|Ages 7—9|ID: mt_9gpUHWVKMR

It costs money to make things (costs/expenses); you earn money by selling them (revenue); if revenue is more than costs, that's profit; if costs are more, that's a loss

Mastery Evidence

Explain what costs, revenue, and profit mean using a simple example
Calculate profit from a given scenario (e.g. spent £3 on ingredients, sold cakes for £8, profit = £5)
Explain what happens if costs are higher than revenue (you make a loss)

Assessment Prompt

“If [child] spent £4 on supplies for a lemonade stand and earned £10 selling lemonade, could they tell you how much profit they made?”

Prerequisites3

Making Change
softAges 7—9
Making a Simple Plan
hardAges 7—9
Buyers & Sellers
hardAges 5—7

Show full prerequisite tree

Making Change soft
Cross-domain: making change skills (Money & Finance) support profit calculation
- Money Addition & Subtraction soft
  Curriculum money problem-solving (Maths Y2) provides arithmetic foundation for making change
  - Adding money and giving change hard
    Solving money problems requires ability to combine coins
    - Addition as combining or putting together two soft
      Combining coins involves addition
      - How Many in Total? hard
        Understanding addition as combining groups requires knowing numbers represent quantities (cardinality)
        
        One-to-one counting hard
        Cardinality principle builds on one-to-one correspondence — you must count correctly to know the last number tells 'how many'
    - Pounds & Pence Notation hard
      Finding coin combinations requires knowing coin values and symbols
      - Coin Values hard
        Using £ and p symbols extends Y1 recognition of coin values
        
        Reading and writing numbers to 20 hard
        Recognising coin values requires reading numerals (1, 2, 5, 10, 20, 50)
        
        How Many in Total? hard
        Reading/writing numerals 0–20 requires understanding that numerals represent quantities (cardinality)
        
        One-to-one counting hard
        Cardinality principle builds on one-to-one correspondence — you must count correctly to know the last number tells 'how many'
        
        Writing digits 0-9 hard
        Writing numerals requires the motor skill of forming digits 0-9 (taught in English handwriting)
        
        Sitting and holding a pencil soft
        Same motor skills for digit formation
  - Subtraction as taking away or separating hard
    Giving change involves subtraction
    - How Many in Total? hard
      Understanding subtraction as taking away requires knowing numbers represent quantities (cardinality)
      - One-to-one counting hard
        Cardinality principle builds on one-to-one correspondence — you must count correctly to know the last number tells 'how many'
- Adding money and giving change soft
  Finding coin combinations (Maths Y2) supports change calculation
  - Addition as combining or putting together two soft
    Combining coins involves addition
    - How Many in Total? hard
      Understanding addition as combining groups requires knowing numbers represent quantities (cardinality)
      - One-to-one counting hard
        Cardinality principle builds on one-to-one correspondence — you must count correctly to know the last number tells 'how many'
  - Pounds & Pence Notation hard
    Finding coin combinations requires knowing coin values and symbols
    - Coin Values hard
      Using £ and p symbols extends Y1 recognition of coin values
      - Reading and writing numbers to 20 hard
        Recognising coin values requires reading numerals (1, 2, 5, 10, 20, 50)
        
        How Many in Total? hard
        Reading/writing numerals 0–20 requires understanding that numerals represent quantities (cardinality)
        
        One-to-one counting hard
        Cardinality principle builds on one-to-one correspondence — you must count correctly to know the last number tells 'how many'
        
        Writing digits 0-9 hard
        Writing numerals requires the motor skill of forming digits 0-9 (taught in English handwriting)
        
        Sitting and holding a pencil soft
        Same motor skills for digit formation
- Coins & Notes hard
  Must recognise coin/note values before calculating change
  - Coin Values soft
    Curriculum coins/notes recognition (Maths Y1) underpins exploratory coin knowledge
    - Reading and writing numbers to 20 hard
      Recognising coin values requires reading numerals (1, 2, 5, 10, 20, 50)
      - How Many in Total? hard
        Reading/writing numerals 0–20 requires understanding that numerals represent quantities (cardinality)
        
        One-to-one counting hard
        Cardinality principle builds on one-to-one correspondence — you must count correctly to know the last number tells 'how many'
      - Writing digits 0-9 hard
        Writing numerals requires the motor skill of forming digits 0-9 (taught in English handwriting)
        
        Sitting and holding a pencil soft
        Same motor skills for digit formation
  - What Money Is hard
    Must understand what money is before learning to recognise specific coins and notes
- Buying Things hard
  Must understand buying transactions before calculating change
  - Coins & Notes hard
    Must recognise coins/notes and their values before practising buying transactions
    - Coin Values soft
      Curriculum coins/notes recognition (Maths Y1) underpins exploratory coin knowledge
      - Reading and writing numbers to 20 hard
        Recognising coin values requires reading numerals (1, 2, 5, 10, 20, 50)
        
        How Many in Total? hard
        Reading/writing numerals 0–20 requires understanding that numerals represent quantities (cardinality)
        
        One-to-one counting hard
        Cardinality principle builds on one-to-one correspondence — you must count correctly to know the last number tells 'how many'
        
        Writing digits 0-9 hard
        Writing numerals requires the motor skill of forming digits 0-9 (taught in English handwriting)
        
        Sitting and holding a pencil soft
        Same motor skills for digit formation
    - What Money Is hard
      Must understand what money is before learning to recognise specific coins and notes
  - What Money Is hard
    Must understand money as exchange medium before practising transactions
Making a Simple Plan hard
Must understand planning before learning about costs and revenue
- Budgeting Pocket Money soft
  Cross-domain: budgeting pocket money (Money & Finance) provides planning foundation
  - Needs & Wants hard
    Must understand needs vs wants to make budget trade-offs
    - What Money Is hard
      Must understand money exists and is limited before distinguishing needs from wants
  - Buying Things soft
    Buying experience helps with realistic budgeting
    - Coins & Notes hard
      Must recognise coins/notes and their values before practising buying transactions
      - Coin Values soft
        Curriculum coins/notes recognition (Maths Y1) underpins exploratory coin knowledge
        
        Reading and writing numbers to 20 hard
        Recognising coin values requires reading numerals (1, 2, 5, 10, 20, 50)
        
        How Many in Total? hard
        Reading/writing numerals 0–20 requires understanding that numerals represent quantities (cardinality)
        
        One-to-one counting hard
        Cardinality principle builds on one-to-one correspondence — you must count correctly to know the last number tells 'how many'
        
        Writing digits 0-9 hard
        Writing numerals requires the motor skill of forming digits 0-9 (taught in English handwriting)
        
        Sitting and holding a pencil soft
        Same motor skills for digit formation
      - What Money Is hard
        Must understand what money is before learning to recognise specific coins and notes
    - What Money Is hard
      Must understand money as exchange medium before practising transactions
  - Saving Money hard
    Must understand saving concept before budgeting a fixed amount
    - Needs & Wants soft
      Understanding needs vs wants helps motivate saving decisions
      - What Money Is hard
        Must understand money exists and is limited before distinguishing needs from wants
    - What Money Is hard
      Must understand what money is before learning to save it
- Having a Business Idea hard
  Must have a business idea before making a plan for it
  - Making Something to Sell hard
    Must have experience making something to sell before generating business ideas
    - Needs & Wants soft
      Cross-domain: needs vs wants (Money & Finance) helps understand what makes a product desirable
      - What Money Is hard
        Must understand money exists and is limited before distinguishing needs from wants
    - Goods & Services hard
      Must know what goods are before creating a product to sell
    - Buyers & Sellers hard
      Must understand exchange before making something to sell
      - Goods & Services hard
        Must understand goods and services before grasping buying and selling
      - What Money Is soft
        Cross-domain: understanding what money is (Money & Finance) supports grasping exchange
  - Who Is a Customer? hard
    Must understand customers before spotting problems to solve for them
    - Making Something to Sell soft
      Making a product helps understand what customers want
      - Needs & Wants soft
        Cross-domain: needs vs wants (Money & Finance) helps understand what makes a product desirable
        
        What Money Is hard
        Must understand money exists and is limited before distinguishing needs from wants
      - Goods & Services hard
        Must know what goods are before creating a product to sell
      - Buyers & Sellers hard
        Must understand exchange before making something to sell
        
        Goods & Services hard
        Must understand goods and services before grasping buying and selling
        
        What Money Is soft
        Cross-domain: understanding what money is (Money & Finance) supports grasping exchange
    - Buyers & Sellers hard
      Must understand buyers and sellers before exploring customer concept in depth
      - Goods & Services hard
        Must understand goods and services before grasping buying and selling
      - What Money Is soft
        Cross-domain: understanding what money is (Money & Finance) supports grasping exchange
Buyers & Sellers hard
Must understand buying/selling exchange before grasping revenue concept
- Goods & Services hard
  Must understand goods and services before grasping buying and selling
- What Money Is soft
  Cross-domain: understanding what money is (Money & Finance) supports grasping exchange

Unlocks2

Scaling Up
hardAges 9—11
Supply Chains
hardAges 9—11