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PERSONAL INCOME EQUATION (P.I.E). Gross Pay – Deductions = Net Pay – Expenses = Discretionary Income.

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Presentation on theme: "PERSONAL INCOME EQUATION (P.I.E). Gross Pay – Deductions = Net Pay – Expenses = Discretionary Income."— Presentation transcript:

1 PERSONAL INCOME EQUATION (P.I.E)

2 Gross Pay – Deductions = Net Pay – Expenses = Discretionary Income

3 Gross Pay Every two weeks or weekly Wages (hourly rate) Salary/year (26 or 52) Commission (% of sale) Salary + Commission Wage + Commission

4 Deductions Mandatory Income Tax Federal Provincial Employment Insurance Health Insurance Plan OHIP Workers Compensation Union Dues Canada Pension Plan

5 Deductions Cont. Voluntary Deductions Investments Insurance Premiums (house, car) Supplemental Health Insurance Optical/Dental/Life Insurance Plan Drug Plan

6 Net Pay Also called: Take home pay or Disposable Income Groceries Clothing

7 Expenses Rent Mortgage Utilities Heat Hydro Water Phone Cable

8 Expenses Conti. Food House Insurance Property Tax Clothing Transportation Public Vehicle Loan, insurance, tax, gas, repairs Household Supplies Furniture Interest Children

9 Discretionary Income Entertainment Vacations Investments Luxury (wants) Computer Education Gifts Home Improvements Memberships Pets

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