Income Monday, Jan 13 th

Priorities Priority 1 Essential to life Priority 2 Not essential to life, but important Priority 3 Neither essential, nor important

Needs VS Wants In a well developed paragraph, explain how the media turns wants into needs through advertising.

Story What sources of income was Rio planning to have as a professional athlete? What are some other sources of income that a professional athlete or celebrity could have? Rio talked about making 2 million a year, how much money do you think sport figured and celebrities make?

Story Does that sound like enough money to meet Rio’s, or another celebrity’s, needs and wants? How does Rio’s dream compare with that of a business owner, a professional, a trade-worker, or a student?

Student Sources of Income Typical sources of student income include: Allowances and gifts Wages and tips Payments for occasional work Income from personal business Income from government sources Income from investments

Pay Stub General Information: name, employee number, pay period, cheque number, etc. Earnings: type of earnings (regular, overtime, etc.) hours or days worked amount earned in a current period year-to-date (YTD).

Pay Stub Deductions: income tax, employment insurance, Canadian Pension Plan may also include union dues, medical plan and extended medical coverage, life and disability insurance, savings plans, etc. Deductions = automatic payments to government and other organizations that your employer makes on your behalf to pay services or benefits

Pay Stub Vacation Pay: Employees are entitled to be paid four per cent of their total wages (six per cent after five days) for vacation pay. This lets employees take two or three weeks of vacation with pay Casual and part-time employees often receive their vacation pay on each paycheque

Pay Stub Income Tax: a portion of your income that is sent to the Governments of Canada and BC to pay for federal and provincial government services The federal, provincial and territorial governments require you to pay a portion of your income in tax so that the government will have money to operate through the year

Pay Stub Income Tax: Paid on your total income, minus a number of allowable deductions. Eg. Basic personal amount  people who have taxable income of less than $10,320 paid no tax People who earned more that that could pay between 15 and 29% of their taxable income (federal) and 5.06 to 14.7% (BC) Canada has a progressive tax system, meaning that those who have higher earnings pay a higher percentage of their income in taxes

Pay Stub Income Tax: Not always deducted at the source (by the employer) Tax may not be deducted if: Your projected income for the year is below the amount of the basic exemption You do contract work that is not regular employment Whether tax is deducted or not, you are responsible for reporting and paying any income tax you owe

Pay Stub Canada Pension Plan (CPP): Percentage of gross income paid by employees and employers to provide income when workers retire or become disabled Employment Insurance: percentage of gross income paid by employees and employers to provide temporary payments if workers become unemployed

Group Work Please get into your groups (for your characters): Luna, Nikos, Rio, Sienna, Indigo, Quinn, Kane, Gaia

Monthly Income Many paycheques are bi-weekly (every two weeks) or semi- monthly (twice a month) Other types of income may be quarterly (four times a year), annual (once a year), or irregular

Monthly Income You can convert income to a monthly amount using the following formulae: Semi-monthly income x 2 = monthly income Bi-weekly income x 2.17 = monthly income (the 2.17 comes from 26÷12) Quarterly income ÷ 3 = monthly income Yearly income ÷ 12 = monthly income How would you calculate annual income?

Group Work Handout 5-2: Use income records to complete the handout

Individually Handout 5-3: List your own income from various sources (gifts, part-time jobs, allowance, etc.) Total your income Project your income to determine an anticipated income after deductions over a month and a year.