Lesson Plan

• Describe what secondary income is and distinguish it from primary income.
• Identify the main types of secondary income and classify each as an inflow or outflow.
• Calculate net secondary income and explain its effect on the current‑account balance.
• Analyse how changes in secondary‑income flows can influence exchange rates and overall economic performance.

• Projector and screen
• PowerPoint slides summarising definitions and examples
• Printed worksheet with a balance‑of‑payments table
• Calculators
• Whiteboard and markers
• Handout of past‑paper exam questions

Begin with a short story about a migrant worker sending money home, asking students how that money appears in national accounts. Recall that the current account records all transactions that affect a country's income and expenditure. Explain that today they will learn the secondary‑income component and the success criteria: they will be able to define, classify, and calculate its impact on the balance of payments.

1. Do‑now (5’): Quick quiz on the three components of the current account (goods, services, secondary income).
2. Mini‑lecture (10’): Define secondary income, show examples (remittances, aid, pensions, interest/dividends, private transfers) and distinguish inflows vs. outflows.
3. Guided practice (12’): Students complete a BOP table, placing each example in the correct inflow/outflow column.
4. Calculation activity (8’): Using the formula Net Secondary Income = Receipts – Payments, calculate the net figure and insert it into the overall CAB formula.
5. Exam‑style practice (10’): Work in pairs on two past‑paper questions, then peer‑check answers.
6. Check for understanding (5’): Whole‑class summary of key points; teacher asks rapid‑fire questions.

Recap the definition, types, and accounting treatment of secondary income and how it shifts the current‑account balance. Students complete an exit ticket stating one way a rise in remittances could affect exchange rates. For homework, assign a short worksheet requiring calculation of net secondary income from a new set of data.