Budgeting and Taxes

Budgeting and Taxes

Live Lesson 4/7/22

Civics & The Economy

Mrs. Rhodes and Miss Dillon​

By Debra Rhodes

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And thanks for asking nicely!​

​Test corrections

Catch-up plans

Ask your teacher​

1. ​​ Learn about budgeting and the different taxes that have to be paid.

2. Does anyone balance a checkbook anymore?

3. Advantages and disadvantages of payment methods.​

Objectives:

Multiple Choice

How much do you think you cost your parents each year?

• $600/year

• $1400/year

• $15,000/year

• $6000/year

​The average cost of raising a child born to a middle-income, married couple is approximately $267,000 (in 2021 dollars) over a period of 18 years  — or more than $14,800 a year per child for a typical two-child household according to a U.S. News & World Report.

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​How much does it cost to raise a child?

Open Ended

Name some expenses that your parents have to pay for you.

Out of an average of $15,000

• ​Housing: 29%

• Food: 18%

• Child care and education: 16%

• Transportation: 15%

• Health care: 9%

• Miscellaneous: 7%

• Clothing: 6%

U.S. News and World Report

• Electronics

• Extracurricular activities

• Sports and hobbies

• School fees for field trips, activities, fundraisers, etc.

• Family trips or vacations

Median Income for a family in 2020: $74,949

​Median Expenses for a family in 2020: $61,334

​Consumer Expenditure Survey from the U.S. Bureau of Labor Statistics (BLS)

​Housing $1784

Transportation​ $819

​Insurance/Retirement $604

Health Insurance $431

​Groceries $412

Entertainment $243

​Eating Out $198

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​Cash $190

​Clothes $120

​Education $106

​Personal Care $54

Misc. $152

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Total/month $5111​

50% goes towards your needs, such as housing costs, utility bills, groceries, loans, and any other mandatory expenses.

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​30% goes towards your personal wants, such dining out, entertainment, traveling, streaming services, and other subscriptions.

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20% goes to your savings, whether it’s a savings account, retirement fund, or other investments.

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Budget Experts Recommend the 50/30/20 Rule

Multiple Select

Which of the following is considered a need in a budget?

• Rent

• Groceries

• Going out to eat

• iPhone

Multiple Choice

Health Insurance would be considered

• A Need

• A Want

• Neither, because you probably won't use it every month.

• Both a need and a want.

Multiple Select

Which of the following is considered a want?

• The newest gaming system

• Getting another pet

• A trip to France

• New skis

• Gov't Debt​

• Social Security

• Medicare

• Other health care

• Military

• Veteran's Benefits

• ​Safety Net

• Education

• Infrastructure​

• 10. Salaries​

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What do my taxes pay for?

• ​individual income taxes

• corporate income taxes

• payroll taxes

• capital gains taxes

​​Taxes on what you earn

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• ​sales taxes

• value-added taxes

• excise taxes

Taxes on what you buy

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• ​property taxes

• estate and inheritance taxes

• wealth taxes.

Taxes on what you own

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Income tax

• comes out of your paycheck

• complete your tax return by Apr 15th

​Sales Tax

• automatically paid when you purchase something​

​Property Tax

• most people pay property tax as part of their house payment

• taxes on your car/boat/rv are paid when you get the tag

​How do I pay my taxes?

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FICA--your employer pays the same amount you do for Social Security and Medicare

​FUTA--Federal Unemployment Tax

State Unemployment Tax​

Worker's Compensation Tax​

​Employer Taxes

FICA--Social Security

--Medicare​

Federal Income Tax

State Income Tax​

Payroll Taxes​

What happened to my paycheck?​

Multiple Choice

Which of these would be considered a tax on what you own?

• Income Tax

• Death Tax

• Sales Tax

• Property Tax

Multiple Choice

I bought a Playstation 5 for $500, but the total I had to pay was $531.00. What tax did I pay?

• Property Tax

• Sales Tax

• Income Tax

• Capital Gains Tax

Fill in the Blank

I worked 22 hours for $12.75 an hour so I thought my paycheck would be $280.50, but it was actually only 235.83. What tax did I just pay?

Your Employer Also Pays:

​FICA--your boss plays the same amount you pay

​FUTA--Federal Unemployment Tax

​State Unemployment Tax

​Worker's Compensation Tax

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Payroll Taxes:

FICA--Social Security (6.2%) and Medicare (1.45%)

Federal Income Tax

State Income Tax​

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You fill out the forms to tell the government how much you made, you get to deduct basic expenses, you tell them how much you've already paid, and if you're lucky, you get some money back.

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Tax Returns Are Due April 15th

Multiple Choice

Which tax helps people who are unemployed.

• Sales Tax

• FICA

• FUTA

• Income Tax

Multiple Choice

Which tax pays for retirement and healthcare for the old folks?

• FICA

• FUTA

• State Income Tax

• Federal Tax

Balance my checkbook?

What's that?

Then they would check it with the bank statement once a month to make sure they had the same transactions and balance.

Back in the old days, people wrote down everything they purchased in a check log.

Balancing your checkbook means to make sure your records match up with the bank's records.

The purpose is to know how much money you actually have left in the account because some transactions take a few days to show up, so keeping a checkbook log helps you to know what you can spend.​

Most people use a banking app now that allows them to keep track of their spending and the amount in the bank. Most banks have their own apps.

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I found some information about several of them at this link,

​https://www.parents.com/kids/responsibility/money-management/allowance-and-budgeting-apps-for-kids/

or your parents can just google "allowance apps for teens: ​

Did you know there are apps for allowance and chores?

Open Ended

How many ways can you think of that people can pay for things?

Ways to Pay

Some text here about the topic of discussion

Bill pay from bank

PayPal

CashApp

GooglePay

ApplePay

​ACH

Wire Transfer​

​Barter

Cash

Check

Credit Card

Debit Card​

Poll

Which statement do you agree with the most?

• I love paying taxes! Please give me more!

• I hate taxes and I don't think I should have to pay them.

• I hate paying taxes, but I think it's my civic duty to contribute to my country.

Draw

Name one thing that taxes pay for.

Poll

What is your favorite class?

• Social Studies

• Social Studies

• Social Studies

• Underwater Basket Weaving

Open Ended

What is your pet's name?

Poll

Which state do you live in?

• Colorado

• Arizona

• Kansas

• Texas