Paycheck Basic
Why might your paycheck be smaller than expected
because of tax deductions
what are taxes used for
to fund public services like roads, schools and safety programs
what's the purpose of a checking account
used for every day spending
What's a smart first paycheck decision?
Treat yourself to something small, but save most of it
what's the difference between gross pay and net pay
gross pay is total of earnings, net pay iOS what u take home
how much do taxes and benefits usually take out of your paycheck
20-30%
what's a savings account for?
To store money you don't want to spend right away and earn interest
How can saving $20 every paycheck help long term?
It builds habits and adds up big savings over time
what are pay roll deductions
what's an example of where taxes go
publics schools, roads and police or fire department
What's a 50/30/20 rule used for?
A budgeting rule: 50% needs, 30% wants, 20% savings
Why is tracking your money important?
If you don't know where it goes, you can't manage it.
what is "net income"
your total earnings after taxes and deductions
what's the difference between benefits and taxes
taxes go to government programs; benefits are job related perks like health insurance
What are federal taxes used for?
Supporting the government and programs such as public education and natural disaster relief.
How do you find out your net income?
Gross income = Payroll withholding
what personal info found on a paycheck
The employee's name, address, and SS
what form do you use to report income
w-2
What's the best way to start saving regularly?
Set up automatic transfers or put aside a small amount from each paycheck
What are a few examples of Payroll Deductions?
FICA
Federal withholding
State Withholding