Gross income: The full picture of your earnings 

By Tracy Rabi

Gross income is the total amount of money you earn before any deductions. Imagine selling snacks at school—your gross income is the full amount collected before subtracting costs for ingredients.

Imagine you help your parents with chores all week — you clean your room, wash the dishes, and feed the dog. At the end of the week, your parents give you 10,000 shillings. That full 10,000 shillings is your gross income. It’s the total money you made for all your hard work.

But sometimes, before you can spend all your money, you might need to set some aside. For example, maybe you agree to put 1,000 shillings into your savings account every week, or maybe you have to pay back a small loan you took from your sister. After you take money out for those things, what’s left is called your net income.

For adults, gross income includes salaries, bonuses, and business earnings before taxes and expenses. If a boda boda driver makes Tsh40,000 daily, that’s their gross income. But after fuel and maintenance, their net income is less.

Knowing your gross income helps in planning and budgeting. Always aim to grow it through smart financial choices.

So, if you ever hear someone say, "My gross income is 100,000 shillings a month," it means that’s the full amount they make before paying for anything like taxes, savings, or expenses.

And guess what? Even grown-ups have to understand gross income to manage their money well — so you’re already on your way to being a money master!

Tracy Rabi is a children's author and the founder of Kids Finance with Tracy and the Tanzania Youth Entrepreneurship Experience.