Finance Week
Finance Week

This week you will
be…..
Lesson 1 “What Job?”
•
Choosing a job
•
Calculating your “take home” salary
Lesson 2 “Where to live”
•
Rent of buy?
•
Choosing a property
Lesson 3 “What's the cost?”
•
Running a property
Lesson 4 “Getting around”
 Buying a car
 Getting a life
What Job?

What is your ideal
job?
Discuss
Out of these find the closest match.
Career
Salary
Location
Website Developer
£15,000 (up to £18,000)
London/ Norwich
Plasterer/Plumber
£15,000 (up to £30,000)
Anywhere
Shop Assistant
£7,500 (up to £13,000)
Anywhere
Actuary
£32,000 (up to £100,000)
London/Norwich
Display Designer/Window
Dresser
£9,000 (up to £18,000)
Anywhere
Computer Hardware
Technician
£12,000 (up to £25,000)
London/Norwich
Groundsman/ Greenkeeper
£8,000 (up to £15,000)
Bungay
Solicitor
£24,000 (up to £100,000)
Anywhere
Meter Reader
£11,000 (up to £13,500)
Anywhere
Teacher
£19,000 (up to £34,000)
Anywhere
Pilot
£30,000 (up to 100,000)
London
A Pay Slip
What is tax?




In this country, if you are an employee (i.e. you
work for someone else), tax is deducted from
your earnings before you receive them.
On your pay slip this is called 'PAYE', or pay as
you earn; otherwise known as income tax.
It is collected by the Inland Revenue on behalf of
the Government, and is used to pay for things
like healthcare, social security and welfare
services, defence, roads and education.
The amount of tax you pay depends on how
much you earn.
What is National Insurance?

the National Insurance fund was used by
the Government to pay for a range of
welfare benefits such as
1.
2.
3.
4.

unemployment benefit,
sickness and invalidity benefit,
maternity allowance,
basic retirement pension.
You still need to maintain your National
Insurance contributions since they entitle
you to these benefits should you wish to
claim them.
How is tax paid?

PAYE is the system used by employers to take
tax and National Insurance contributions off
your pay. They then pay over that money
directly to us, the Inland Revenue.
Tax Rates

Your tax code is made up of tax allowances. You will
pay tax at the following rates on your earnings

You get charged no tax on the first £5,225 this is
called your tax allowance

on the next £2,230 you pay 10% (the starting rate)

on the next £32,600 you pay 22% (the basic rate)

on any income over £34,600 you pay 40% (the
higher rate)
What is my NIC?





As well as tax, your employer will usually take
off National Insurance contributions (NICs) from
your pay. Most employees pay the standard rate
of NICs.
Up to £87 a week (£377 a month) you pay Nil
Over £87 and up to £670 a week (over £433 and
up to £2,903 a month) you pay 9.4%
Over £670 a week (£2,903 a month) you pay
1%
Above £34,840 a year the rate changes
Calculations!

Use your booklet to calculate your tax and
national insurance.

Complete the salary summary in your
Personal budget
Personal Budget
Name:
Occupation:
Location:
Gross Salary:
Payslips, Tax and National Insurance
Monthly Salary
Monthly
Monthly Tax
(gross)
National Insurance
Property
Mortgage
Rent or Buy
Potential
Monthly Cost
of Mortgage or
Rent
Household
Bills
Monthly Salary
(net)
Total Monthly Money
Property Cost Left
Transport
Mode of
Transport
Cost of Ticket
(Monthly)
Cost of Loan
(Monthly)
Additional
Costs; Fuel,
Car-Tax etc…
Total Monthly
Cost of
Transport
Spending the Rest
Calculate your remaining funds for a month
= [Monthly Salary (net)] – [Total Property Cost + Total Cost of Transport]
=
This is your budget for food, clothes and having fun ect.
Fill in this table, deciding how much you are going to spend in each category
For food you will need a budget of at least £15 per week
Food
Clothes
Sports Clubs
Going out with friends
Cinema
Savings (for holidays ect.)
How do you feel about that?
Homework


Use the housing boards in the mathematics
department and the library to research the
details of properties available in the area
you work in.
You must:
Record all the details of any properties
within the correct area (price, rent, location,
etc)