1. Finalizing a job and TAxes

2. Journal (Pop Quiz)
What are the “Big Six” sources of income that we talked about in class?
What three skills should you develop now to be better able to find a job (not education)?
What is an opportunity cost?

3. Reminders
Resume and final Expense Tracker due Friday

4. Cost of Living How much it costs to exist
Varies depending on where you live/what kind of lifestyle you’re used to
Where are living costs going to be higher v. lower?
Where are jobs more likely to be available?

5. Cost of living/budgeting
For an example, let’s pretend you have graduated high school and went to work full-time in a fast food restaurant. You want to live on your own. Let’s figure out if you make enough money.
Let’s pretend.

6. Cost of living/budgeting
What is the minimum wage?
$7.25/hour
How many hours is full-time?
40 hours per week
Multiply $7.25 by 40 hours per week to see what you would earn in one week from the fast-food job.
$290.00/week
Now multiply that amount by four weeks in the month.
$1,160.00/monthly
The answers appear when you click the mouse.
Cost of living/budgeting
How much do you need?

7. Cost of living/budgeting
Not bad, but do you get to keep all that money?
Taxes have to be paid on our earnings. We will be generous today and only take out $100 for taxes. How much does that leave?
$ /monthly
Now that you have made your money, let’s figure out how to spend it.
$836.00/monthly appears with mouse click
Cost of living/budgeting
How much do you need?

8. Cost of living/budgeting
Where will you need to spend your money every month?
Place to live
Telephone
Car
Insurance
Gasoline
Clothes
Electricity
Entertainment
Food
Cost of living/budgeting
Expenses

9. Cost of living/budgeting
What kind of home will you live in? Apartment, a regular house or a mansion?
Let’s look at homes first.
Cost of living/budgeting
Housing

10. Cost of living/budgeting
How much do you think a three bedroom home in a safe neighborhood costs per month?
The average rent for a three-
bedroom home in Utah is
$1,320/month.
Do you make enough?
Click for the answer and last question.
Cost of living/budgeting
Houses

11. Cost of living/budgeting
How much is the rent for an average two-bedroom apartment in a big city like Salt Lake?
The average is about $1,200 per month
Do you make enough?
Click for answer and last question.
Cost of living/budgeting
Apartments

12. Cost of living/budgeting
What type of car would you like to drive?
Monthly payment: $965/month
Monthly payment: $360/month
Monthly payment: $170/month
Talk about the cost of each car and let them know the reality is that they would get the bottom car, if they could afford one at all.
Cost of living/budgeting
Car

13. Cost of living/budgeting
You don’t have much left over from your fast-food salary, do you?
We haven’t even begun to talk about electricity, telephone, insurance, clothes, much less your entertainment expenses.
It is expensive to live on your own, isn’t it?
It is hard to buy everything you want/need when you’re working on minimum wage.
Cost of living/budgeting
How much is left?

14. A handy tool… www.areavibes.com
Online comparison tool for different cities

15. Taxes!!!
Just to make it harder…

16. Taxes 3 levels: State, Federal, and Local
Multiple Types: Income, Sales, Property
Income: Tax on your wages
Sales: Tax on stuff you buy
Property: Tax on stuff you own (ex. Real Estate)

17. What do taxes pay for?

18. Tax Details
The average amount a family spent on income taxes in 2015 was $13,000
Varies based on how much your family makes
Free Rider- Someone who uses community goods without paying for them
Crux of a lot of controversy surrounding taxes. Does not paying solve the problem?

19. Employment Forms
I-9: Proves that you are eligible to work in the United States
W-4: How much federal tax should the government withhold from your paycheck
The fewer allowances, the more they take, but the bigger chance you have of getting a nice tax return
W-2: You get this at the start of every year. Shows how many taxes were withheld the previous year

21. Wages v. Income Wages- your pay rate (ex. $7.25/hour, $50,000/year)
Income- How much you actually take home