Learning About Finances

Taxes

When you have a job, a certain percentage of your income goes to taxes. Taxes are state and federal fees that everyone must pay. One kind is Social Security taxes. Social Security tax money is used to pay money to people who have already retired and people with certain disabilities.

Taxes help pay for things that people who live in the community use. Taxes help pay for things like:

• Roads
• Parks
• Police
• Fire Department
• Libraries
• Schools

Benefits

It’s a good idea to ask about benefits when you are thinking about taking a job. Benefits are things other than money that you get from a job. You get benefits along with your salary or wage.

Insurance

One type of benefit is insurance. Insurance means you or your employer pays money to a company who then helps pay for certain things or pays money when something bad happens. There are several kinds of insurance you might get from your job:

• Health insurance
• Dental insurance
• Life insurance

Medical Spending Accounts

Medical spending accounts are where you put aside money each paycheck before taxes get taken out. You can use this money to pay for health care.

Retirement Plans

A retirement plan is where part of your wages gets put aside to be used when you are no longer working.

Paid Time Off

Paid Time Off (PTO) means you can still get your wages without having to go to work. This can include:

• Vacation time
• Sick time
• Paid holidays

For these benefits, make sure you talk about them with your employer. There might be monthly costs that you pay each month, and you should make sure you know about them!