We moved to our next topic.... income. We discussed getting a job, working some hours, and earning a wage.
We learned how to find our GROSS pay by multiplying our hours by our wage. Then we realized the awful truth.... that what we earned... is NOT what we will receive!
We remembered that we have to take out payroll taxes (income tax, Social Security, and Medicare taxes). Once those are taken out, what is left, is what we receive.... our NET income!
After going through some examples, I asked the kids to do a quick writing assignment:
Summarize the lesson by explaining the role taxes play in gross pay and net income.