1. Salary deductions

2. Review What is salary or wage? When do you get a salary or wage? What is ‘paid by the hour’? How do you figure out how much money you made if you are paid by the hour?

3. Paid by the Hour AMOUNT OF MONEY YOU MAKE PER HOUR AMOUNT OF hours YOU work HOW MUCH MONEY YOU MADE THAT WEEK OR 2 WEEKS

4. Do you get to keep all that money? NO!!!!!!! You do not get to keep all the money you make when you work!

5. Salary deductions What does the word ‘deduction’ mean? Deduction = taken away Salary deduction = money is taken away from your salary What kinds of salary deductions are there?

6. Types of salary deductions  TAXES TAXES The government takes away money from you pay The money goes to the government The money is used for things like schools, hospitals, roads, etc. The Quebec government AND the Canadian government take money from your pay

7. Types of salary deductions  PENSION PENSION Pension is money that is taken away from you salary and is put away for you by the government. You get this money after you retire from working. You get paid after you retire  the money you gave while you were working comes back to you.

8. Types of salary deductions  UNION DUES UNION DUES Sometimes when you work, you are part of a union A union is a group that protects workers Money is needed for the union to run properly So if you are part of a union, you give money to the union when you get paid The money you give is called UNION DUES

9. Types of salary deductions  INSURANCE INSURANCE Some jobs have insurance. Insurance is a plan that helps people pay for things like medicine, dentist appointments and other medical expenses Money gets taken off each pay and is given to the insurance company

10. Gross pay VS. Net pay GROSS PAY means how much money you make BEFORE any deductions. NET PAY means how much money you get after ALL the deductions.

11. GROSS PAY DEDUCTIONS NET PAY

12. Example #1 Jerry earns $10.65 per hour at his job at the swimming pool. Last week he worked 27 hours. The Quebec government taxed him $25.00, the Canadian government taxed him $15.00 and he had to pay $13.00 in union dues. WHAT WAS JERRY’S GROSS PAY? WHAT WAS JERRY’S NET PAY?

13. Example #2 Jennifer earns $9.56 per hour at her part time job at the bowling alley. Last week she worked 15 hours and the week before she worked 12 hours. The Quebec government taxed her $49.00, the Canadian government taxed her $30.00 and he had to pay $13.00 in union dues. Jennifer’s job also has medical insurance of $10.00 each week. WHAT WAS JENNIFER’S GROSS PAY? WHAT WAS JENNIFER’S NET PAY?

14. Personal Budgets 1

15. What is a personal budget? A budget helps you plan how much money you can and want to spend on something or on several things. You need to think about how much money you make first You need to see how much money are able to spend You need to make choice about what you spend your money on. You need to think about what is a “NEED” and what is a “WANT”

16. What is a “NEED”? A “NEED” is something that you must have in order to survive and / or live your life There are some needs that are more important than others Here are the most important needs: – Water – Food – Shelter When you plan your budget, these things should be the first things you think about

17. What is a “NEED”? Here are some other “NEEDS” that are also important: – Electricity – Heating – Telephone – Transportation – Internet These should be important parts of your budget

18. What is a “WANT”? A “WANT” is something you may want, but you do not need to live and survive Here is a list of things of “WANTS”: Cable / satellite television Buying the most expensive clothes Going out to restaurants Video games DVDs The most expensive cell phones Jewlery

19. How do I figure out what my budget is? STEP 2: Figure out how much money you must spend on what you NEED. Add up all the things you need to spend money on. Make sure you think about what is NEEDED.

20. How do I figure out what my budget is? STEP 1: Figure out how much money you make each month Once you figure out how much money you make, you will know how much money you can spend Make sure you know what your NET PAY is. NOT your GROSS PAY

21. How do I figure out what my budget is? STEP 3: Subtract how much you need to spend each month from how much money you make. These are called “COSTS” Make sure you spend less than you make. If you are spending more money than you make, you will need to change something.

22. How do I figure out what my budget is? STEP 4: After you subtract your COSTS from how much money you make, you can see if you have money left over. You can use this money for things that you want MORE IMPORTANTLY, you can save some of this money in your bank account

23. EXAMPLE #1 Amanda makes $350.00 each week this month (4 weeks) Amanda spends $300.00 on rent Amanda spends $200.00 on groceries Amanda spends $125.00 on her bus pass Amanda spends $100.00 on her cell phone Amanda spends $90.00 on her cable and internet Amanda spends $100.00 on restaurants Amanda spends $200.00 on going out to movies and amusement parks with friends Amanda spends $350.00 on clothes Amanda spends $200.00 on