1. Part 1 Intro: Working and Earning Goal: Describe the factors that influence an individual’s income. Brainstorm…… individual skills and abilities, work ethic and market conditions

2. Working and Earning Earning Statements Key Ideas Employee earning statements include information about………………. gross wages, benefits, taxes and other deductions Gross vs. Net – define? Take home pay

3. Deductions Define…. money that is taken out of an employees gross pay for different purposes

4. Example: Pete earns a salary of $45,000/year and gets paid every 2 weeks. Then, money is deducted for health insurance ($100/pay) 401k (10% of gross) Social Security (7% of gross) federal income tax (20% of gross) state income (4% of gross) local income taxes (2% of gross)

5. Deductions Other Examples: – health insurance (medical, dental, vision) – retirement contributions – annuities/loan payments – garnishment (for unpaid child support, owed back taxes, etc.) – taxes - federal, state and local Social Security, federal income, state income, local income

6. Financial Responsibility and Money Management: Personal Budgeting What is a Budget? - brainstorm Big Ideas Responsible personal finance decisions are based upon reliable information and used to reach personal goals A personal financial plan includes financial goals and a budget. A Budget includes ……? spending on goods and services, savings and investments, insurance and philanthropy