LESSON 5: BANKY PAYCHECK PROS (continued) Scenario 2: Lamar Slored-value cards, or prepaid cards, generally allow you to spend only the money dnpon ind on the card. Payroll cards are one of four main t e redeyslucard They are used by an employer to pay wages instead of giving you a paper barche Paroles are different from other types of stored-value cards because you do not need to purchase than or pay activation fees. Since your employer provides the card Lamar opts to have his paycheck deposited onto a stored value card that he purchased for 55 because his employer does not offer payroll Cards Money can be loaded onto the card via direct deposit or by going to certain stores. It has a major credit issuer logo on it. so he can use it anywhere just as with a credit or debit card Lamar can use his stored value card at an ATM, but the card issue charges $2 for every ATM transaction Lamar mostly uses his card at stores, where he slides his card through the point-of-sale (POS) terminal, but this month he used the ATM four times How much did Lamar pay this month in fees when using his stored value card at an ATM? How much would Lamar pay each year in fees if he used his stored-value card at an ATM an average of four times each month? Scenario 3: Sylvia Sylvia has a checking account. The bank charges a monthly fee of $6 unless she uses direct deposit or her debit card more than five times per month. If Sylvia uses direct deposit or her debit card frequently and she uses no more than one box of checks every year, which cost her $18. how much does she pay to maintain her checking account? (Show your math) Comparing Scenarios: How much can Tony save each year if he opens a checking account and pays what Sylvia does? Even if Tony pays a 56 monthly fee for a total of $72 a year, plus the cost of the checks (318). how much could he save each year? How much can Lamar save each year if he opens a checking account and pays what Sylvia does PART 1: GROSS VERSUS NET Gross income is your total income before deductions Net income is your total income after deductions (for example federal and state income taxes Social Securty taxes, retirement savings contributions, and premiums for medicalinsurance) Gross income-deductions - Net income MEET ISAAC Isaac works at the local mall earning S10 an hour. During his last pay period, he worked a total of 16 hours. Below is the list of his deductions. Help Isaac calculate his net pay Gross pay: $160.00 . Show Your Math le - 20.00 $20.00 Deductions: Federal Income Tax 520.00 State Income Tax $7.50 cocial Security: $9.00 Medicare: 52.40 X 10 $160 131. 50 123.50 2.40 What is Isaac's net pay?_$121.10 $121.TO PART 2: YOU HAVE A PAYCHECK...NOW WHAT? What are your choices once you receive a paycheck? Read each scan to compare costs and determine who saves more money once they and answer the questions his or her paycheck Scenario 1: Tony Tony cashes his weekly paycheck at Fees4Cash, a check-cashing service Fees4Cash charges Tony $5 to cash every check. How much does Tony pay Fees4Cash each month to cash his paychecks? How much does Tony pay each year? $ 20 x 12 =$240 MONEY SMART FOR GRADES 9-12 AND AGES 18-20: STUDENT GUIDE