1. Discuss With Elbow Partner Get out “Your Budget” Worksheet
Reflection Questions:
1. Does your spending actually balance with your income? If not, where will you get the extra money from?
2. You may have some money left over, what could you do with it?
3. Discuss some ways you could increase your income. How do you think you would use this money to balance your budget?
Get out “Your Budget” Worksheet

2. Financial Report Today we will:figure out our Net monthly income
So we can: develop our budget

3. Definitions Gross Annual Income: (GAI)
How much you make each year BEFORE taxes
Gross Monthly Income:
(GMI)
How much you make each month BEFORE taxes
Net Monthly Income:
(NMI)
How much you make each MONTH after taxes
Get it? Net. haha!

4. What taxes are taken out of your paycheck?

5. Definitions Federal Income Tax Social Security Medicare
A portion of one’s personal income paid to the government
**The more you make, the more you pay**
Income tax pays for:
Social Security, Medicare, Retirement programs, Military, veterans, Interest payments on national debt, Social programs- medicaid, food stamps, unemployment, Law enforcement- prisons, FBI, CIA
Social Security
- A federal insurance program that provides benefits to retired persons, the disabled, and spouses of deceased workers.
- Provides economic security for Americans unable to work.
- Comes from workers and employers
Medicare
The federal health insurance program for people who are 65 or older or certain younger people with disabilities.

6. FICA- Federal Insurance Contribution Act
SDI- State Disability Insurance

7. Life Situation Cards
New identity

8. Then put Gender and age of child Example: Girl age 7
Your name
Circle
Then put Gender and age of child
Example: Girl age 7
Fill in information from life situation cards

9. PG 5

10. **Round to the nearest dollar**
$31,000
$2, 214
$22
$155
Leave blank
Leave blank
Net Monthly x %= Actual Spent
Example:
2,214 x 1% (.01) = 22.14
2,214 x 7% (.07)= 155
**Round to the nearest dollar**