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