What Is Profit?
The extra that stays in your pocket
▸ Story
Your child gets £5 pocket money.
They buy a toy for £3. They still have £2 left.
Later, they sell the toy to a friend for £4.
Now they have £2 leftover plus £4 from selling the toy—a total of £6.
They started with £5. Now they have £6. The extra £1 is profit.
In trading: you start with an account, say £50. You make a trade. If it works, your account might become £52. That extra £2 is profit.
★ Key idea
Profit = “More money than you started with after a trade.”
✦ Quick quiz
1. In the pocket money story, how much profit did we make?
2. If we sold the toy for £2 instead of £4, would we have profit or loss?
3. In trading, when you have profit, what happens to your account number?
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Wild and Wise
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