My Pay, My Money
What is money?Before money there
was barter (trading)Governments print
money to make buying easier
Gold coins are worth something since people like gold
Paper money is worth something since we all agree on its value
Always remember: Money is not the goal, we simply think that money can give us what we want.
Inflation: The tendency of prices to rise
The overall price of things tend to go up about 2-3% each year
If your wage does not go up – it has actually gone down
Over many years this change in price can be drastic
Payment methodsHourlySalaryPieceworkCommissionContractTips
Pay PeriodsWeeklyBi-weeklyMonthlySemi-monthly
Deductions: Money that is subtracted from your pay before you get it
Gross Income: Your pay before deductions
Net Income: Your pay after deductions (what your pay check actually is)
Types of government deductions:Federal Income TaxProvincial Income TaxCanada Pension Plan
(approx. 5%)Employment Insurance
(approx. 2%)
Other deductions:Pension/ investment
RRSPRESP
Dental BenefitMedical Benefit *Life InsuranceDisability InsuranceUnion DuesCharitable Donations
Most benefits are a kind of insurance
Most employers pay part of their employees benefits
Benefits can save you thousands of dollars
Benefits become even more important when you have a family
Income tax:There are 2 kinds of
income tax – federal and provincial
They each set their own rates (as a % of income)
The less money you earn, the lower the percentage of tax you will pay
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