2.  Successful Marriages/Relationships require respect, compromise, and team work!  Combined Income ◦ “With greater power comes greater responsibility”  Important to remember financial decisions can effect more than just yourself

3.  Big difference between WANTS vs NEEDS  WANTS include items that are not a necessity, luxury to own ◦ Examples: Snowmobile, Netflix, Ipad, etc.  NEEDS include items that are essential for living ◦ Examples: Heat/Air Conditioning, Food, Rent Money

4.  Gross Salary – All the money you make before deductions have been made for taxes, social security, health insurance, etc.  Net Salary – Take home pay, after all deductions have been made  Income Tax – Government levy on tax payers, amount varies depending on the amount of income (State and Federal) ◦ Use 30% income tax for equations

5.  Montana Minimum Wage $8.05 per hour  Full time: 40 hours per week  Gross Pay: ◦ Hourly Wage x 40 hrs x 4 weeks  Example Gross Pay & Net Pay ◦ $8.05 x 40 hours per week x 4 weeks: ??

6.  Salary job is based on a 12 month period  Does not take into account hours per week  Monthly Gross Pay: ◦ Salary / 12 months  Monthly Net Pay: ◦ Gross Pay x Income Tax ◦ Gross Pay – Income Tax $$  Example using National Average: ◦ $45,000

7.  Employers will provide benefits or ‘Salary Packaging’  Compensate cash wages with various benefits  Usually cheap rates with company/business rather than individual  Examples: ◦ Vision ◦ Medical Insurance ◦ Paid Time Off (PTO) ◦ Sick Leave ◦ Dental Insurance ◦ Retirement Plans

8.  High School Dropout – $22,000  High School Diploma - $30,000  Associates Degree (2 years of College) – $38,000  Bachelors Degree (4 years of College) - $49,000  Masters Degree (2 years beyond Bachelors) – $60,000  Doctorate Degree - $110,000

9.  Bachelors Degree: ◦ Earned twice as much as those without a high school diploma ◦ 62 percent more than high school diploma ◦ 29 percent more than associate's degree  Master’s degree: ◦ 23 percent more than median earnings for young adults with a bachelor's degree

10.  Calculate the Net Salary for each Education Income Average category (HS dropout, HS diploma, Associates Degree, etc.)  SHOW ALL WORK  Label the Gross Salary, Income Tax, and Net Salary when working out your problems