Learn how income is generated and how factors such as taxes, interest rates, and inflation impact income.
Uncle Sam Takes a Bite
This essential lesson introduces students to gross income, net income, and deductions including mandatory deductions. You can walk through the elements of the sample paycheck. Then, explain the three concepts. Read through the table explaining common deduction types.
Tax Saving Strategies
This essential lesson introduces students to the concepts of itemizing and retirement accounts such as IRAs and 401Ks. Students will read about ways to lower their taxable income and fund retirement accounts and answer questions.
Time Value of Money
This essential lesson teaches students how interest rates and inflation change the value of money over time. You can show students the PowerPoint and read through the speaking notes to explain the concept including how to calculate present value. This lesson includes the Economics of Seinfeld: The Kiss Hello video, a fun way to introduce calculating compound interest.
￼Calculating Future Value and Present Value
This essential activity can be done as a group or individually and gives students the opportunity to practice calculating future and present value.
Federal Tax Brackets
This supplemental activity shows students the concept of marginal tax rate and standard deduction. Students calculate one family’s federal tax bill.