Week 5: First Paycheck Literacy

💰 Your First Paycheck Reality Check

Got your first job? Congratulations! But here's what nobody tells you: your first paycheck will be smaller than you expect. Let's break down exactly what happens to your money before it reaches your bank account.

🔮 Reality check: A $15/hour job at 20 hours looks like $300 — but taxes and deductions take a cut before it reaches your bank. How big a cut? Predict it just below, then calculate and see how close you were.

📊 Paycheck Calculator

Hourly Wage

Your pay per hour (before taxes)

Hours per Week

Most teen jobs are part-time (15-25 hours)

Pay Frequency

How often you get paid

State

Affects your state income tax

Your Paycheck Breakdown

$300

Gross Pay (before deductions)

🔒 Lock your prediction above to reveal the deductions and your real take-home pay.

🤔 What Are All These Deductions?

💼 Federal Income Tax

Money that goes to the federal government for things like military, national parks, and government services. The amount depends on how much you earn.

👴 Social Security (6.2%)

This money goes into a fund that will pay you when you retire (65+). Think of it as forced retirement savings that you'll get back later in life.

🏥 Medicare (1.45%)

Healthcare program for people 65 and older. You're paying into a system that will help cover your medical costs when you're a senior.

🏛️ State Income Tax

Money for your state government (varies by state). Some states like Texas and Florida have no state income tax, while others like California have higher rates.

💡 First Job Tips

Save your first pay stub! It shows you exactly how taxes work. Many teens are shocked by the difference between gross and net pay - now you're prepared!