Introduction to Financial Literacy/Analyzing Income


Introduction | Trends in the Workplace | Employment Benefits | Income & Taxes | Review


Introduction

Financial literacy in basic terms is about your ability to manage the money that you earn. Most people work hard for the money they earn and want it to last a long time so that they are able to live comfortably. Although living comfortably may mean different things to different people, everyone wants to take care of their basic needs as well as things that they want.

Becoming money smart by engaging strategies and discipline that will support you in saving, spending, and managing your money wisely including:

The stability of the economy rests on the ability to maintain a low unemployment rate and provide a safe, secure workplace. Employees benefit from an enjoyable workplace, and in turn businesses save money. When a solid relationship exists between the individual and her working environment, society benefits overall as well. Capozzi (2019)

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Trends in the Workplace

What do you want to be when you grow up? You've probably been asked that question before but the answer might not yet exist. Perhaps the occupation of your future is yet to be thought of. For example, when I was in second grade I told my mom that I wanted to be a teacher. Teaching is obviously not a new profession but back in the 1970's no one thought schools would be teaching students virtually! According to freelance writer, educator, and nonprofit consultant Alyssa Walker, "... what's here today could change in just a few short months. What's the catalyst? Technology, the flow of information, our growing screen-dependency, and a desire to do the things we've always done in new ways."

These new jobs include:

How Much Does an Uber Driver Make in 2019?

So you have a driver's license. You have a vehicle. Now you have to pay for the vehicle, insurance, gas, and the occasional oil change and other various maintenance. You need a job! What about putting that new (to you) vehicle to work and become an Uber or Lyft Driver, one of the jobs that didn't exist 10 years ago. But before you sign on the contractual dotted line, read the article How Much Does an Uber Driver Make in 2019?.

Assignment: Uber Article Review Questions

Directions: After reading the article How Much Does an Uber Driver Make in 2019? answer the questions in itsLearning.

Assignment: Occupational Necessities Assignment

Directions: Close your eyes and imagine the world had to start all over.  All that exists are water, land, trees, animals, and 50 people whose ages range from 10 to 50. You are put in charge of selecting the seven most necessary occupations to get the world going again. No training for any of these occupations is necessary. List the seven occupations and the reasons why you would select each one.

Put your numbered list and explanations directly in the itsLearning textbox. Do not attach a separate document and do not link to your Google drive.


Employment Benefits

employement benefitsEmployee compensation is generally more than just the amount of dollars written on the bi-monthly paycheck or direct deposited into their bank account. Most companies also offer benefits and perks. According to Glassdoor Economic Research, the following are the core benefits that make the biggest impact on employee satisfaction:

why employees stay

In addition to benefits, some companies also offer perks like:

When evaluating a job offer, salary is not the only consideration. Most job candidates also look at location, environment, and benefits when determining whether to accept a position. Surprisingly, perks are not a strong consideration when choosing a job.

Assignment: Job Perks Discussion

Directions: CBS News' John Blackstone reports on why 2.5 million people send their resumes to the high-tech giant every year -- a company where human resources is a science. Watch the video below and then determine whether perks would influence your decision to accept a job. What perks would you consider essential and which would you simply enjoy as an employee. Post your thoughts in 3 to 5 sentences to the discussion board and then reply to at least two classmates to continue the collaborative discussion.


Income & Taxes

Income

Income is broadly defined but in general terms, it is money that is earned. When you think of income most people associate that term with a regular paycheck. However, income takes on many forms. The Internal Revenue Service (IRS) separates income into:

Earned income includes things like:

Your income is the money that you receive in exchange for work performed or investments made. Currently, most of you only have wages to worry about. Your allowance would also be considered earned income.

Unearned income (income that is not earned through wages) includes things like:

As a teenager, most of you only have interest and dividends from Certificates of Deposit and savings accounts to worry about but you should be aware that income comes from a variety of sources and the IRS expects you to report it all when you file your annual taxes return.

One of the most common goals of students after high school is to become self-sufficient and successful in life. There are varying degrees of success defined by the individual. For most individuals, this includes choosing a career that allows for earning a good income to pay all the bills, be comfortable, and enjoy life. Every decision made or not made affects your ability to pursue that dream and realize success. Sometimes those decisions affect your income and your potential to maximize it. Your career choice will likely be your primary source of income so choose wisely. There are many things that affect income including career choice, education, skills and economic conditions. When selecting the right profession and the path for achieving it, you should consider your return on investment - how much you will gain from a certain career path - if you invest in the required training such as a college degree.

ROI

Assignment: How Do You Contribute to the Economy? Discussion

Directions: Who has an income? What type of income? Is it from working? What kind of job (remember earnings from babysitting or dog walking count as income)?  Have you ever sold anything on eBay, Etsy, Amazon, or to a friend? If so, what type of income was the money received? How are you contributing to the local economy? Summarize your answers in a well-constructed post and then respond to two classmates regarding their income experiences. Post your response in 3 to 5 sentences. Respond to at least two classmates to continue the collaborative discussion.


Taxes

Cash is not a common method of paying employees due the difficulties in accurate and legitimate recording keepingYou are so excited to get you first real job and it is time to get that coveted paycheck. You were probably disappointed to see that your paycheck is less than what you were expected.

Income taxes in the United States are imposed by the federal, most state, and many local governments. The income taxes are determined by applying a tax rate, which may increase as income increases, to taxable income, which is the total income less allowable deductions.

The federal and the state governments require employers to compensate employees for time worked. The federal government requires employers to withhold federal income tax, Medicare tax and Social Security tax from an employee's income, unless the employee is exempt from taxation. You will be asked to complete a form W-4 for federal income tax withholding purposes. You must include your withholding conditions on the form, such as number of allowances and filing status, which helps the employer determine the amount of federal income tax to withhold from your paychecks. If you fail to complete the W-4, your employer is required to withhold taxes as the highest rate.

Your employer will generally withhold the following taxes (click on each to learn more about them):

The taxes that are withheld from your paycheck are sent to the federal and state governments. Federal income tax, also known as personal income tax, is the federal government's leading source of income while most states are supported by state sales tax in addition to the state income tax. Unlike Georgia, not all states have state income tax and rely heavily on the state sales tax.

Assignment: Calculating Wages

Directions: If you are an hourly worker, your gross pay is calculating by taking the number of hours worked times the amount you earn per hour. For example, if you earn $10 an hour and you worked 30 hours, your gross pay is $300. But the law requires your employer to withhold state and federal taxes from the money you earn. If your employer deducted $18 for state withholding, $27 for federal withholding, and $22.95 for FICA (Social Security & Medicare), your net pay would be $232.05.

Practice calculating gross pay and net pay by completing the Calculating Wages worksheet in itsLearning.

Assignment: FBLA Discussion

Directions: Future Business Leaders of America-Phi Beta Lambda, Inc. (FBLA-PBL) is the largest career student business organization in the world. Each year, FBLA-PBL helps over 230,000 members prepare for careers in business.

View the FBLA Fact Sheet [PDF] and the PBL Fact Sheet [PDF] for more information.

After watching the FBLA promotional video explain in this discussion how you think this student organization will benefit you now and in the future? Post your response to the discussion board in itsLearning and reply to at least two classmates.


Review

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Resources

If you are having problems viewing this page, opening videos, or accessing the URLs, the direct links are posted below. All assignments are submitted in itsLearning. If you have having problems, contact Mrs. Rush through the itsLearning email client.

Eight Jobs That Didn't Exist Ten Years Ago: https://www.masterstudies.com/article/eight-jobs-that-didnt-exist-ten-years-ago/

The Importance of Employment & Workplace in the Society: https://bizfluent.com/info-8296076-importance-employment-workplace-society.html


Credits

Employees Benefits Image, SmallBizDaily

Return on Investment Image, Bureau of Labor Statistics


Transcript of this lesson