Making Money 1

Student Guide on Making Money 1

Overview of Types of Work and Pay

  • Consideration of Future Career: Individuals are encouraged to think about the type of work they may want to do in the future, exploring fields such as:

    • Health Care

    • Skilled Trades

    • Service Industry

    • Corporations

  • Forms of Pay: Different job types offer various payment structures:

    • Hourly Wage: Employees receive pay based on the number of hours worked.

    • Annual Salary: Employees receive a fixed sum of money per year, divided over pay periods.

Lesson Objectives

  • Compute Gross Pay: Learn how to compute gross pay considering different pay structures.

Preparation for the Lesson

  • Estimated Duration: The lesson is expected to take approximately 60 minutes.

  • Required Materials:

    • Game Time Text Alternative Document

    • Making Money Solutions

    • Practical Math: A Reference Guide and Problem Sets

    • Optional: Calculator

Key Terms and Definitions

  • Deduction: An amount that is regularly withheld from an employee's pay, such as taxes and health insurance contributions.

  • Gross Pay: The total earnings before any deductions are taken out, calculated as:
    Gross Pay=Hourly Rate×Number of Hours Worked\text{Gross Pay} = \text{Hourly Rate} \times \text{Number of Hours Worked}

  • Hourly Wage: The rate paid to a worker for one hour of work.

  • Overtime Pay: The additional pay for hours worked beyond the standard work hours, calculated by:
    Overtime Pay=Overtime Rate×Overtime Hours Worked\text{Overtime Pay} = \text{Overtime Rate} \times \text{Overtime Hours Worked}

  • Overtime Rate: Generally set at 1.5 times the regular hourly rate for hours exceeding 40 in a week.

  • Pay Period: The designated time frame for which an employee is compensated, such as weekly or biweekly.

  • Salary: A predetermined amount of money an employee earns over a specified time, usually yearly.

  • Wages: A fixed payment for work done, typically earned hourly and compensated daily or weekly.

Activities and Learning Segments

Activity 1: Introducing Making Money (Online)

  • Preparation Questions:

    1. Knowledge about wages, overtime, salaries, tips, and commission.

    2. Everyday encounters with the terms mentioned above.

    3. Questions regarding wages and related concepts.

Activity 2: Calculating Wages (Online)

  • Learning Focus: Calculating gross pay with and without overtime.

  • Key Questions for Summary:

    1. Definition of wages.

    2. Explanation of hourly rate.

    3. Formula for gross pay without overtime:
      Gross Pay=Hourly Rate×Hours Worked\text{Gross Pay} = \text{Hourly Rate} \times \text{Hours Worked}

    4. Standard hours before overtime kicks in (40 hours).

    5. Calculation for overtime rate:
      Overtime Rate=1.5×Regular Hourly Rate\text{Overtime Rate} = 1.5 \times \text{Regular Hourly Rate}

    6. Calculation of gross pay with overtime.

Activity 3: Try Calculating Wages (Online)

  • Tasks: Apply concepts learned by working through examples provided online.

Activity 4: Calculating Salary (Online)

  • Learning Focus: Calculating earnings based on annual salaries.

  • Key Questions for Summary:

    1. Definition of salary.

    2. Meaning of pay period.

    3. Calculation of earnings per pay period:
      Earnings per Pay Period=Annual SalaryNumber of Pay Periods in a Year\text{Earnings per Pay Period} = \frac{\text{Annual Salary}}{\text{Number of Pay Periods in a Year}}

Activity 5: Try Calculating Salary (Online)

  • Tasks: Work through examples seen on online screens to practice salary calculations.

Activity 6: Review Making Money 1 (Online)

  • Overview of Pay Calculation:

    • Regular pay is calculated based on the first 40 hours worked in a week.

    • Overtime pay is calculated based on hours worked beyond 40.

    • Gross Pay Calculation:

      • Gross Pay = Regular Pay + Overtime Pay

    • Salary descriptions:

      • A fixed yearly income paid across various pay periods (weekly, biweekly, semimonthly, monthly).

  • Summary Questions:

    1. Wages Definition: Income based on hours worked.

    2. Hourly Rate Definition: Amount paid for each hour worked.

    3. Gross Pay Calculation without Overtime:
      Gross Pay=Hourly Rate×Number of Hours Worked\text{Gross Pay} = \text{Hourly Rate} \times \text{Number of Hours Worked}

    4. Overtime Threshold: 40 hours.

    5. Overtime Rate Calculation: Regular hourly rate multiplied by 1.5.

    6. Gross Pay with Overtime Calculation: Sum of regular pay for the first 40 hours and overtime pay.

  • Salary Definitions:

    1. Salary Explanation: A set amount of money paid for a specified amount of time.

    2. Pay Period Definition: Timeframe for which an employee is compensated.

    3. Salary Per Pay Period Calculation: Annual Salary divided by the number of pay periods.

Activity 7: Practice Making Money 1 (Offline)

  • Reading Assignment: Pages 112 to 114 for context.

  • Problem Sets: Complete Problems 1–15 (odd numbers) on pages 114–115.

  • Extra Practice (Optional): Complete Problems 2–16 (even numbers) on the same pages, covering checkpoints: 3, 9, 15.

  • Lesson Checkpoint: Complete the checkpoint online as an assessment of understanding.

Example of Calculating Pay

  • Example Scenario: An employee works 50 hours in a week. The hourly wage is $15.

  1. Calculating Gross Pay Without Overtime:

    • For the first 40 hours:

      • Regular pay = Hourly Rate × Hours Worked

      • Regular pay = $15 × 40 = $600

  2. Calculating Overtime Pay:

    • Overtime Hours = Total Hours Worked - Standard Hours = 50 - 40 = 10 hours

    • Overtime Rate = 1.5 × Regular Hourly Rate

    • Overtime Rate = 1.5 × $15 = $22.50

    • Overtime Pay = Overtime Rate × Overtime Hours

    • Overtime Pay = $22.50 × 10 = $225

  3. Calculating Gross Pay With Overtime:

    • Gross Pay = Regular Pay + Overtime Pay

    • Gross Pay = $600 + $225 = $825

  • Summary: In this example, the gross pay for an employee working 50 hours at an hourly wage of $15, factoring in 10 hours of overtime, totals $825.