1. DO NOW SILENTLY & INDEPENDENTLY, in today’s “Terms of the Day” sheet, define the following terms, in your own words. 1. Income 2. Gross Income 3. Net Income 4. Fixed Expenses 5. Variable Expenses

2. Budgeting Making the Most of Your Money

3. OBJECTIVE SWBAT explain the difference between “gross” and “net” pay by calculating deductions

4. AGENDA 1. Careers (25 minutes)  Complete research on Google Spreadsheet  Complete “Job Announcement Criteria” sheet 2. Instruction 1.Human Capital – Invest in Yourself (5 mins) 2.Pay - Gross vs Net (5 mins) 3.Expenses - Fixed vs Variable (5 mins) 3. Payroll Activity (30 mins)

5. CAREERS 1. Complete “Career Research” on Google Drive  Share with me 2. Complete “Job Announcement Criteria”  Find 2 job announcements – 1 for current qualification, 1 for a potential future career  DO NOT PRINT ANNOUNCEMENTS!

6. Education vs. Income Activity ► Stand with your colored square Everyone standing represents people who started high school. This activity will illustrate the different paths people can choose during their lifetime and the different results.

7. Orange ► If you are holding an orange card please sit. ► These 4 people represent 14.8% of the U.S. population who did not graduate from high school or earn a GED. ► Median income is $23,608 per year, the lowest wages of all workers ► Congratulations! Everyone remaining finished high school.

8. Red ► If you are holding a red card please sit. ► These 7 people represent 28.5% of the U.S. population who graduated from high school or earned a GED. ► Median income is $32,552 per year. ► Congratulations! The remaining decided to further their education.

9. Green ► If you are holding a green card please sit. ► These 5 people represent 21.4% of the U.S. population who did have some college or training. ► Median income is $36,348 per year.

10. Yellow ► If you are holding a yellow card please sit. ► These 2 people represent 7.5% of the U.S. population who received their associate degree. ► Median income is $39,572 per year.

11. Blue ► If you are holding a blue card please sit. ► These 4 people represent 17.6% of the U.S. population who received their bachelor's degree. ► Median income is $53,300 per year, which is significantly more than a high school graduates median income.

12. Purple ► If you are holding a purple card please sit. ► These 2 people represent 7.2% of the U.S. population who have completed a Master’s degree. ► Median income is $65,634 per year.

13. Black If you are holding a black card please sit. This one person represents 3.1% of the U.S. population who have completed a Professional or Doctorate degree. Median income is $79,664 per year.

14. Human Capital ► Human Capital – skills acquired through a process of self investment ► What are examples of things you can do to increase human capital?  Summer jobs  Volunteer  Extra-curricular activities

15. Education vs. Income Higher Education = Higher Estimated Lifetime Earnings

16. DO NOW – share out SILENTLY & INDEPENDENTLY, in today’s “Terms of the Day” sheet, define the following terms, in your own words. 1. Income 2. Gross Income 3. Net Income 4. Fixed Expenses 5. Variable Expenses

17. Income (Gross Pay vs. Net Pay) Income is any money that you receive ► Gross Pay – Income BEFORE deductions ► Net Pay – Income AFTER deductions (take- home)

18. Four required tax deductions 1. Federal Income Tax  tax levied by the federal government on all earned income ► Based on income level, marital status, & allowances 2. Social Security Tax  federal old-age (retirement), survivors and disability income ► 6.2% of GROSS PAY 3. Medicare Tax  health insurance for the aged and disabled ► 1.45% of GROSS PAY

19. Deductions ► Other deductions could include:  Local Taxes  Retirement  Health Insurance  Savings  Donations ► Amounts vary for these….many based on your personal financial plan/goals

20. Expenses ► Fixed Expenses – monthly expenses that remain constant ► Variable Expenses – monthly expenses that fluctuate ► Periodic Expenses – expenses that do not occur on a regular basis

21. Expenses ► Which type would these be? Groceries Magazine Subscription renewal Dinner and a Movie Car Payment GasClothing

22. PAYROLL ACTIVITY 1. Calculate the payroll (net pay) for the 5 examples listed on your sheet. 1.Federal Income Tax - Based on income level, marital status, & allowances 2.Social Security Tax - 6.2% of GROSS PAY 3.Medicare Tax - 1.45% of GROSS PAY 2. Then choose your “future” job from the “Job Announcement” worksheet you completed earlier and calculate the “Net Pay”