Fiscal Literacy

Income is tied to your career Experience Education

Key to finding the right career Interests Abilities Values Personality Limits (Weaknesses)

More Education = Less Unemployment Less Education = More Unemployment

Reality Check Figure out how much money you spend a month and how much you need to make to support yourself.

Income Terms Earned Income: Total wages or salary and benefits. Gross Pay: Total wages or salary before deductions. Net Pay: Total wages or salary after deductions.

Taxes Provide money for the government to operate and provide services to you and others. What are some types of services? How much you pay depends on your filing status i.e. married or single, and the number of dependents you claim.

Tax Refund The government refunds you the money you overpaid during the year. It may be better for YOU to have the money during the year, so you can SAVE it. You can reduce some of the payroll taxes by making contributions to a retirement plan.

Benefits You may need to work a certain number of hours per week to be eligible for benefits. Insurance: Your employer may have negotiated with a health insurance company to cover all their employees. This rate may be lower than you getting it on your own. Retirement account: Some employers match your contributions. Contribute at least the amount that they will match. Paid Time Off: Vacation, holiday, or sick pay.

Pay Stubs

2016 Tax Rates Taxable Income Tax Rate $0—$9,275 10% $9,276—$37,650 $927.50 plus 15% of the amount over $9,275 $37,651—$91,150 $5,183.75 plus 25% of the amount over $37,650 $91,151—$190,150 $18,558.75 plus 28% of the amount over $91,150 $190,151—$ 413,350 $46,278.75 plus 33% of the amount over $190,150 $413,351—$415,050 $119,934.75 plus 35% of the amount over $413,350 $415,051 or more $120,529.75 plus 39.6% of the amount over $415,050

Having good Credit Keep balances low on credit cards and other "revolving credit".... (What is revolving credit?) Pay off debt rather than moving it around. Don't close unused credit cards as a short-term strategy to raise your scores. Don't open a number of new credit cards that you don't need, just to increase your available credit.

Credit Unions and Banks For-profit companies owned by shareholders Not-for-profit institutions owned and controlled by their own customers, who are known as members Managed by a paid board of directors elected by the bank’s shareholders Managed by a member and volunteer board of directors, who are elected by other members Offer their services to everyone; anyone can become a customer Offer their services to special groups of people and may be employer-, church-, community-, or alumni-sponsored (among others); customers must qualify for credit union membership through their membership with these special groups of people

Credit Unions and Banks Owned by shareholders; customers do not have ownership or voting privileges unless they also own stock in the bank Owned by each credit union member, who has equal ownership and one vote, regardless of how much money a member has on deposit Profits benefit a small group of stockholders Profits are returned to members in the form of lower fees and loan rates and higher interest on deposits Accounts are federally insured up to $100,000 by the Federal Deposit Insurance Corporation (FDIC) Accounts are federally insured up to $100,000 by the National Credit Union Administration (NCUA)

When You Open an Account You deposit money in the account. You can add or take out money at any time. The savings institution is allowed to use your money to invest and earn a profit. You are paid a small amount of interest for depositing your money. Your money is insured against loss.

Keep credit card balance under 30% of your credit limit Pay off your balance every month Never Skip a payment Never Make Monthly minimums ONLY

So What? Now What? How can you use this information to positively impact your income? Take a moment to think seriously about what you can do today, next week, or next month to identify the career you want and the education you’ll need to reach your dream and then write it down.