Are You Teaching Financial Literacy? Help Students Understand Where Their Money Goes! 💰
One of the biggest challenges young adults face is learning how to manage their money wisely. From understanding their first paycheck to making informed spending decisions, financial literacy is a crucial life skill that sets students up for success. If you enjoyed these lessons CLICK HERE for more financial literacy resources.
Teaching students about where their money goes—including taxes, deductions, budgeting, and saving—helps them develop smart money habits early on. Whether they’re earning their first paycheck from a summer job or planning for long-term financial goals, understanding financial concepts like gross vs. net pay, payroll deductions, and essential budgeting skills will empower them to make sound financial decisions.
If you enjoyed these lessons CLICK HERE for more financial literacy resources.
In this blog, we’ll explore interactive ways to teach financial literacy, including:
✅ How to read and understand a pay stub
✅ The importance of budgeting and saving
✅ How taxes and deductions impact take-home pay
✅ Real-world strategies to help students manage their earnings
Let’s equip students with the tools they need to take control of their financial future! 💵📊
#FinancialLiteracy #MoneyMatters #SmartSpending #BudgetingTips #LifeSkills #StudentSuccess
💰 Where Does My Money Go?
📌 Objective: Students will learn how to read and understand pay stubs, taxes, and deductions to better manage their earnings and financial responsibilities.
If you enjoyed these lessons CLICK HERE for more financial literacy resources.
📝 Activity 1: Pay Stub Breakdown
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Task: Review a sample pay stub (provided by the instructor) and identify:
Gross Pay (Total earnings before deductions)
Net Pay (Take-home pay after deductions)
Taxes & Deductions (Federal, state, Social Security, Medicare, benefits, etc.)
Discussion Questions:
What’s the difference between gross pay and net pay?
What percentage of your earnings goes to taxes and deductions?
Why are these deductions important?
Deliverable: Highlight key components of the pay stub and write a short reflection on how deductions impact take-home pay.
If you enjoyed these lessons CLICK HERE for more financial literacy resources.
📊 Activity 2: Taxes & Deductions Scavenger Hunt
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Task: Research and explain common paycheck deductions, including:
Federal & State Income Taxes
Social Security (FICA)
Medicare
Retirement Contributions (401k, pension)
Health Insurance Premiums
Deliverable: Create a quick infographic or poster explaining one deduction and present it to the group.
If you enjoyed these lessons CLICK HERE for more financial literacy resources.
💵 Activity 3: Where Does My Paycheck Go? Budgeting Challenge
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Task: Using a sample monthly paycheck, create a simple budget, allocating funds to:
Necessities (Rent, food, transportation, bills)
Savings (Emergency fund, retirement)
Wants (Entertainment, shopping, eating out)
Discussion Questions:
What surprised you about budgeting?
How can you adjust your spending to save more?
What are "wants" vs. "needs", and how do they affect financial planning?
Deliverable: Personalized budget plan based on an estimated intern salary.
If you enjoyed these lessons CLICK HERE for more financial literacy resources.
📌 Activity 4: Payroll Simulation – Calculating Take-Home Pay
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Task: Given a sample gross salary, interns will calculate:
Estimated taxes & deductions
Net pay (Take-home amount)
Challenge: Compare take-home pay for different tax brackets and deduction scenarios.
Deliverable: Complete payroll worksheet with calculations.
If you enjoyed these lessons CLICK HERE for more financial literacy resources.
💳 Activity 5: The True Cost of an Hour of Work
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Task: Calculate how many hours of work are needed to afford:
A monthly phone bill
A new pair of sneakers
A weekend trip with friends
Discussion Questions:
How does this change the way you view spending?
How can better budgeting help maximize your income?
Deliverable: Short reflection on what they learned about time, work, and spending.
If you enjoyed these lessons CLICK HERE for more financial literacy resources.
🔍 Activity 6: Understanding W-4 Forms & Tax Responsibilities
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Task: Review a W-4 form and learn:
How to fill it out correctly
What "allowances" mean
How it affects paycheck withholdings
Discussion Topics:
Why is tax withholding important?
What happens if you don’t have enough taxes withheld?
Deliverable: Practice filling out a sample W-4 (without personal info).
If you enjoyed these lessons CLICK HERE for more financial literacy resources.
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