Students review a sample pay stub to understand the real-world effect of taxes and deductions on the amount of money workers take home.
Earn (Getting paid, Making money, Paying taxes)
CTE (Career and technical education), Math, Social studies or history
Middle school (6-8)
45-60 minutes
Big idea
A paycheck typically includes payment for work completed and a pay stub that records earnings and all deductions.
Essential questions
- How is the amount of a paycheck calculated?
- How does gross income differ from net income?
Objectives
- Understand the components of a pay stub
- Become familiar with the types of taxes that are deducted from a paycheck
What students will do
- Review a sample pay stub.
- Discuss the entries and deductions on the pay stub and what they mean.
Download activity
Teacher guide
cfpb_building_block_activities_examining-elements-paycheck_guide.pdf
Student materials
cfpb_building_block_activities_how-to-read-pay-stub_handout.pdf
Note: Please remember to consider your students’ accommodations and special needs to ensure that all students are able to participate in a meaningful way.