Personal Finance Computing Compensation Key Words Key Words –Compensation –Inflation –Raise –Benefit Package –Salary

Personal Finance Computing Compensation Abstract Abstract – The student will be able to calculate salary expectations given a base salary, Inflation percentage, and raise expectation. They will also be introduced to Benefit Package verses Union Dues and what you are getting in reality.

Personal Finance Computing Compensation Materials Materials –Projector –Computer –Student Calculator –Paper & #2 Pencil

Personal Finance Computing Compensation

Even if you are more interested in having a career that is fascinating, offers a chance to help people, or lets you travel all over the world, earning enough money to support your lifestyle whatever it is – is still important.

Computing Compensation Compensation figure or base salary and given an approximate inflation figure and an approximate raise per year figure can be calculated to give the potential employee a reasonable expectation of earnings.

Computing Compensation We will be looking at 3 different jobs We will be looking at 3 different jobs –Kindergarten Teacher$37,500 –Computer Programmer$44,700 –Automotive Mechanic$27,000

How much will the Kindergarten teacher make next year if she will get base salary + 3% inflation and a 2% raise. Base Salary + 3% of the Base Salary + 2% of the Base Salary = 2 nd year earnings. Base Salary + 3% of the Base Salary + 2% of the Base Salary = 2 nd year earnings. How would you set this problem up? How would you set this problem up? Figure the answer Figure the answer

How much will the Kindergarten teacher make next year if she will get base salary + 3% inflation and a 2% raise. 37, * 3% * 2% = 2 nd year earnings 37, * 3% * 2% = 2 nd year earnings 37, , = 39,375 37, , = 39,375 Or Base Salary Times 105% Or Base Salary Times 105% 37,500 * 1.05 = 39,375 37,500 * 1.05 = 39,375

How much will the Computer Programmer make next year if he will get base salary + 3% inflation and a 2% raise. Base Salary + 3% of the Base Salary + 2% of the Base Salary = 2 nd year earnings. Base Salary + 3% of the Base Salary + 2% of the Base Salary = 2 nd year earnings. How would you set this problem up? How would you set this problem up? Figure the answer Figure the answer

How much will the Computer Programmer make next year if he will get base salary + 3% inflation and a 2% raise. 44, ,700 * 3% + 44,700 * 2% = 2 nd year earnings 44, ,700 * 3% + 44,700 * 2% = 2 nd year earnings 44, , = 46,935 44, , = 46,935 Or Base Salary Times 105% Or Base Salary Times 105% 44,700 * 1.05 = 46,935 44,700 * 1.05 = 46,935

How much will the Automotive Mechanic make next year if he will get base salary + 3% inflation and a 2% raise. Base Salary + 3% of the Base Salary + 2% of the Base Salary = 2 nd year earnings. Base Salary + 3% of the Base Salary + 2% of the Base Salary = 2 nd year earnings. How would you set this problem up? How would you set this problem up? Figure the answer Figure the answer

How much will the Automotive Mechanic make next year if he will get base salary + 3% inflation and a 2% raise. 27, ,000 * 3% + 27,000 * 2% = 2 nd year earnings 27, ,000 * 3% + 27,000 * 2% = 2 nd year earnings 27, = 28,350 27, = 28,350 Or Base Salary Times 105% Or Base Salary Times 105% 27,000 * 1.05 = 28,350 27,000 * 1.05 = 28,350

In ten years, the Computer Programmer’s salary will be? A$72, A$72, B$80, B$80, C$79, C$79, D$75, D$75, How would you find the answer? How would you find the answer? Set the problem up Set the problem up Calculate and give the correct answer Calculate and give the correct answer

In ten years, the Computer Programmer’s salary will be? Multiply current salary by 1.05 to find the salary for the first year. Then multiply that salary by 1.05 to find the second year, and so on up to the tenth year. Multiply current salary by 1.05 to find the salary for the first year. Then multiply that salary by 1.05 to find the second year, and so on up to the tenth year.

In ten years, the Computer Programmer’s salary will be? 44,700 * 1.05 = 46,935 First year 44,700 * 1.05 = 46,935 First year 46,935 * 1.05 = 49, Second year 46,935 * 1.05 = 49, Second year 49, * 1.05 = 51, Third year 49, * 1.05 = 51, Third year 51, * 1.05 = 54, Fourth year 51, * 1.05 = 54, Fourth year 54, * 1.05 = 57, Fifth year 54, * 1.05 = 57, Fifth year

In ten years, the Computer Programmer’s salary will be? 57, * 1.05 = 59, Sixth year 57, * 1.05 = 59, Sixth year 59, * 1.05 = 62, Seventh yr. 59, * 1.05 = 62, Seventh yr. 62, * 1.05 = 66, Eighth year 62, * 1.05 = 66, Eighth year 66, * 1.05 = 69, Ninth year 66, * 1.05 = 69, Ninth year 69, * 1.05 = 72, Tenth year 69, * 1.05 = 72, Tenth year

In ten years, the Computer Programmer’s salary will be? The correct answer is A $72, The correct answer is A $72, His salary increased by $28, His salary increased by $28,111.54

An auto assembly worker receives an annual benefits package, including health insurance, tuition reimbursement, and free company-run day care, worth $4,000 a year. She has deducted from her paycheck $310 a year for union dues. How much will her total employment package be worth? How do you calculate the answer? How do you calculate the answer?

An auto assembly worker receives an annual benefits package, including health insurance, tuition reimbursement, and free company-run day care, worth $4,000 a year. She has deducted from her paycheck $310 a year for union dues. How much will her total employment package be worth? Take the value of the benefit package subtract the union dues = Worth of the benefit package Take the value of the benefit package subtract the union dues = Worth of the benefit package 4,000 – 310 = 3,690 4,000 – 310 = 3,690

Go on the internet and find what your job choice is currently making as a salary. What can you expect to make next year with a 1.5% cost of living increase and a 1% raise. What can you expect to make next year with a 1.5% cost of living increase and a 1% raise. What will you make in 5 years? What will you make in 5 years? What will you make in the next 5 years if inflation raises to 3% and you get a 2% raise each year? What will you make in the next 5 years if inflation raises to 3% and you get a 2% raise each year? Due tomorrow = 100 points Due tomorrow = 100 points