1. Marriage Unit: Budgeting 101

2. Marriage Unit: Multiple Finances
Successful Marriages/Relationships require respect, compromise, and team work!
Combined Income
“With greater power comes greater responsibility”
Important to remember financial decisions can effect more than just yourself

3. Marriage Unit: Budgeting 101
Big difference between WANTS vs NEEDS
WANTS include items that are not a necessity, luxury to own
Examples: Snowmobile, Netflix, Ipad, etc.
NEEDS include items that are essential for living
Examples: Heat/Air Conditioning, Food, Rent Money

4. Marriage Unit: Income and Deductions
Gross Income – All the money you make before deductions have been made for taxes, social security, health insurance, etc.
Net Income – Take home pay, after all deductions have been made
Income Tax – Government levy on tax payers, amount varies depending on the amount of income (State and Federal)
Use 30% income tax for equations

5. Marriage Unit: Calculating Hourly Income
Montana Minimum Wage $8.05 per hour
Full time: 40 hours per week
Gross Pay:
Hourly Wage x 40 hrs x 4 weeks
Example Gross Pay & Net Pay
$8.05 x 40 hours per week x 4 weeks: ??

6. Marriage Unit: Calculating Income
Salary job is based on a 12 month period
Does not take into account hours per week
Monthly Gross Pay:
Salary / 12 months
Monthly Net Pay:
Gross Pay x Income Tax
Gross Pay – Income Tax $$
Example using National Average:
$45,000

7. Marriage Unit: Employer Benefits
Employers will provide benefits or ‘Salary Packaging’
Compensate cash wages with various benefits
Usually cheap rates with company/business rather than individual
Examples:
Vision
Medical Insurance
Paid Time Off (PTO)
Sick Leave
Dental Insurance
Retirement Plans

8. M.U.: Education Income Averages
High School Dropout – $22,000
High School Diploma - $30,000
Associates Degree (2 years of College) – $38,000
Bachelors Degree (4 years of College) - $49,000
Masters Degree (2 years beyond Bachelors) – $60,000
Doctorate Degree - $110,000

9. Bachelors Degree:
Earned twice as much as those without a high school diploma
62 percent more than high school diploma
29 percent more than associate's degree
Master’s degree:
23 percent more than median earnings for young adults with a bachelor's degree

10. Calculate!
Calculate the Net Monthly Income for each Education Income Average category (HS dropout, HS diploma, Associates Degree, etc.)
SHOW ALL WORK
Label the Gross Income, Income Tax, and Net Salary when working out your problems