💼 Your First Paycheck
You earn $200 working a part-time job. Why is the check only $160?
You earned
$300
But you take home...
$247
Where the money goes:
💰 You earned (gross)$300
🏛️ Federal income tax (10%)$30
👴 Social Security (6.2%)$19
🏥 Medicare (1.45%)$4
🗽 State tax (~5%)$15
✅ Take-home pay$232
WHY THE GOVERNMENT TAKES SOME
Federal & state income tax pay for roads, schools, the military, parks. Social Security saves a portion for people who are retired or can't work. Medicare helps older folks pay for healthcare.
🌱 What to do with the take-home pay: open a Roth IRA and put some in. The earlier you start, the more tax-free growth you get. And whatever you spend — pay in CASH, not on credit. No car loans, no credit-card carries. Your paycheck should fund YOUR life, not the bank's profits.
🌱 What to do with the take-home pay: open a Roth IRA and put some in. The earlier you start, the more tax-free growth you get. And whatever you spend — pay in CASH, not on credit. No car loans, no credit-card carries. Your paycheck should fund YOUR life, not the bank's profits.