𝗧𝗲𝗮𝗰𝗵𝗶𝗻𝗴 𝗢𝘂𝗿 𝗞𝗶𝗱𝘀 𝗛𝗼𝘄 𝗠𝘂𝗰𝗵 𝗧𝗵𝗲𝘆 𝗔𝗿𝗲 𝗥𝗲𝗮𝗹𝗹𝘆 𝗘𝗮𝗿𝗻𝗶𝗻𝗴

It`s my daughter's birthday 🎂🥳🎁 and she was given $80 and to her.
Therefore, common sense says that she now has $80 to spend. It got me thinking about how we are teaching our kids at a very young age.

We don't take the time to discuss the difference between gross income and net income and really what makes up the difference between these 2 numbers...

Now it's even more difficult to understand as teenagers and kids receive direct deposit to their bank accounts. They often may not really understand the difference between their gross income and the resulting net amount that was deposited into their bank account. 😩

So fast forward when kids graduate university and are offered a job at $80,000 year. They might decide to go shopping for a house, car, etc. and get lending quite easily...

But soon are to realize that your net is not $80,000. But instead, it is $58,115 / year net and if you were in Saskatchewan. Comparatively, it is $59,580 If you live in Ontario.

𝐓𝐡𝐚𝐭`𝐬 $𝟏,𝟖𝟐𝟑 𝐝𝐢𝐟𝐟𝐞𝐫𝐞𝐧𝐜𝐞!

𝐑𝐞𝐬𝐮𝐥𝐭𝐬 - 𝐒𝐚𝐬𝐤
Total income $80,000
Federal tax $11,246
Provincial tax $7,030
CPP/EI premiums $3,609
Total tax $21,885
After-tax income $58,115
Average tax rate 27.36 %
Marginal tax rate 33.00 %

𝗥𝗲𝘀𝘂𝗹𝘁𝘀 – 𝗢𝗻𝘁𝗮𝗿𝗶𝗼
Total income $80,000
Federal tax $11,246
Provincial tax $5,566
CPP/EI premiums $3,609
Total tax $20,420
After-tax income $59,580
Average tax rate 25.53 %
Marginal tax rate 31.48 %

parents,kids,money,saving,value,income,