Students should know and understand the difference between gross income and net income.
Side note- just about every time I say "gross income" in class all the kids smile and giggle a little. They also ask why is it called gross income, for which I reply I don't know, I will need to look that up.
As a class we have discussed the different types of taxes that are taken out of each paycheck. We also discussed that medical insurance is usually taken out of your paycheck as well. Today we needed to review this concept.
I downloaded a pay stub, copied and then laminated it. This way students can write on the pay stub with a dry erase marker and then erase and start over with new amounts. I made "gross income" cards with various amounts as well as "deduction" cards with various types of deductions. Students were asked to pull one "gross income" card and three "deduction" cards. If any of the "deduction" cards were repeats, such as drawing two federal income tax cards, they would need to discard one and draw again. Students worked in pairs on this station and talked about their outcomes. At the end of class, students were commenting on how much of your pay is actually taken away by taxes. One student said, "Mrs. Stice, your net pay is always so much lower then the amount you really made!"
Peace, Love, Math- Jennifer