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Hi there! Let's explore how money from a job gets to your bank and how we can track it.
When you work a job, you earn money. This money is called income. Your employer gives you a paycheck, but you do not get to keep all of it. Some money is taken out for taxes to help pay for schools and roads.
Your paycheck shows your gross pay, which is the total money you earned. It also shows your net pay, which is the money you actually take home after taxes are subtracted. We can use a bar model to see how gross pay splits into taxes and net pay.
Once you get your net pay, you can put it into a bank account. A deposit is when you put money in, which makes your balance go up. A withdrawal is when you take money out to buy things, which makes your balance go down.
We can use a dot plot to look at how much money a group of students saved from their paychecks. The center of our data shows us a typical savings amount. The spread shows us the difference between the lowest and highest savings.
Sam earns a gross pay of $120. His employer takes out $20 for taxes. Sam deposits his remaining net pay into his bank account, which already had $50 in it. What is Sam's new bank balance?
- First, identify Sam's gross pay, which is $120.
- Next, subtract the taxes from the gross pay to find his net pay: $120 - $20 = $100.
- Identify the starting balance in Sam's bank account, which is $50.
- Add the net pay deposit to the starting balance: $50 + $100 = $150.
- The final bank balance for Sam is $150.
