It All Starts With Income

Learning Goals/Objectives:

• Where do most people get their income?

• Where are the best resources or opportunities
to find the right career?

• What is the relationship between education and
earning income?

• When you find a job, what will your paycheck
look like?

Overview:

This lesson introduces the concept of
income, where income comes from and the relationship between education and
training and the ability to earn income.
It also introduces the “paycheck” and how a wage earner’s net income is
determined.

Students determine a monthly
budget for themselves and the income required as they seek to achieve their
budget goals. The concepts of gross and
net income are clarified.

NOTE: Complete the first section of the activity page by
determining the monthly expenses. For
some items, this will require computing the monthly amount from other periodic
expenses.

Complete the four questions to determine 1) total monthly
expenses, 2) gross monthly pay, 3) hourly pay required for 40 hours of work per
week, and 4) hourly pay required for 30 hours of work per week.

Grouping of Students:

Large group of small groups

Methods:

Small group or individual completion of a budget worksheet.

Activities:

1. Introduce the concept of “income” as an
individual or family’s financial resources and the possible sources of
income. Be sensitive to possible family
privacy concerns.

2.
Ask: What is a budget?

Explain that a budget is a plan for
decision-making about income and expenses.

3.
The first part of a budget is to determine income or to determine how
much income is required to provide for all of your planned expenses.

4.
Distribute copies of Handout 1, It
All Starts with Income.

Explain that the class will use this
budget sheet to look at income and planned expenses.

The Handout uses simple math to
determine monthly expenses, and then to determine how much income is required
to provide for those expenses.

NOTE:
The second page of the handout has the answers computed.

5. Clarify
that some expenses are monthly, some may be weekly, some are daily, and some
come infrequently (auto insurance, for example). Some expenses are known (rent) and some are
not so clear or predictable, month-to-month (entertainment).

Work through the handout, clarifying
each item.

Materials:

Handout 1

Handout 1 with Answers

Assessment:

Complete Handout 1

Download:

Lesson 37 Handout 1.doc