1. Income

2. What is income?
Money that an individual receives from various sources such as:
Wages
Salaries
Commission
Interest
Dividends
Profit sharing
Allowance
Gifts
Benefits:
Medical insurance
Paid holidays
Paid sick days
Dental plan

3. Types of Personal Income
Gross Income
Total amount of income received by a person
Example: job earns $78,000/year
Disposable Income (Net Income)
Income left after deductions (ex. income tax, pension plan, employment insurance)
Example: job earns $78,000/year but take- home pay is $47,500 after deductions

5. Types of Personal Income cont’d
Discretionary Income
Income left over after necessities have been paid for
Used to purchase “the fun stuff”
Example: after paying for mortgage, food, car insurance, etc. you are left with $2300/year.
Hand-out: Calculating Income