Posted by It's a Money Thing Team ● Sep 4, 2020 10:00:00 AM

Making Money - Junior Edition

Different Ways to Make Money: Wage, Salary and Commission

People earn an income when they are hired by an employer to work at a job. Income is earned as a wage, a salary, or a sales commission.

Let's look at an example of each: 

Andrew works as awaiter at the Pancake Hut. He earns a wage. A wage is a set amount of money per hour for work. Andrew's wage is $10 per hour. 

Ellie works as a scientist. She earns a salary. A salary is a set amount of money per year. Ellie's salary is $50,000 per year. If she adds up all her paychecks this year, the total will equal $50,000.

Toby works as a real estate agent. He earns a sales commission. A sales commission is an amount of money based on part of a sale amount. Tony is helping a family sell their house. The family agrees to pay Tony 5% of the house's sale price. Tony sells the house for $200,000. The family pays him $10,000, which is 5% of the $200,000 sale. 


  1. List three different ways an employer can pay you for working at a job.
  2. What is the difference between a wage and a salary?
  3. A _________ is income based on part of a sale amount. 
  4. What would Andrew have to do to earn more money at his job?
    What would Toby have to do?
  5. Bounus Question: A wage, a salary and a sales commission are all ways to earn
    income at a job. What is another way to earn income?