The Forces of the Financial Universe
Time Travel, Inflation Style
What does inflation really mean? Enter the amount your group was given at the beginning
of class ($100, $500 or $1,000) in the space above the chart below. Then use the Inflation
Calculator at bls.gov/data/inflation_calculator.htm to calculate the difference in buying
power that amount of money represented over several decades in comparison with
1990, 2000 and 2012. Enter the amount of money you were assigned at the beginning
of the class in the calculator, then input the years according to the chart and see how the
values change over time.
What does inflation really mean? Enter the amount your group was given at the beginning
of class ($100, $500 or $1,000) in the space above the chart below. Then use the Inflation
Calculator at bls.gov/data/inflation_calculator.htm to calculate the difference in buying
power that amount of money represented over several decades in comparison with
1990, 2000 and 2012. Enter the amount of money you were assigned at the beginning
of the class in the calculator, then input the years according to the chart and see how the
values change over time.
What happened to the numbers on your chart? Why did they change the way they did? What does this say about the I
value of a dollar and inflation? - The numbers on my chart went up as the years went up. The numbers changed the way they did because money was becoming more valuable, this show that inflation has gone up a lot over the decades.
Net Pay: The Effects of Taxes
on Your Income
Courtney is a senior in college and just started her first job as a sales associate. At her new job, she expects to make
about $24,000 per year. She is excited to receive her first paycheck, which is given every two weeks. Courtney learns
that 15% of her gross pay will be withheld for federal income tax, 4% for state income tax and 6% for Social Security
and Medicare taxes. Help Courtney figure out what her take home, or net pay is, and how much she will pay in taxes
each paycheck.
A. How much money will Courtney pay in taxes each paycheck?
Federal: $20,400
State: $19,584
Social Security and Medicare: $18,408.96
B. What is Courtney’s net pay? In other words, how much money does Courtney take home from each paycheck after
paying all taxes? - $5591.04
C. Based on your knowledge of taxes, to which programs, services and accounts do you think the money withheld
from Courtney’s paycheck will go? To a Checking account.
value of a dollar and inflation? - The numbers on my chart went up as the years went up. The numbers changed the way they did because money was becoming more valuable, this show that inflation has gone up a lot over the decades.
Net Pay: The Effects of Taxes
on Your Income
Courtney is a senior in college and just started her first job as a sales associate. At her new job, she expects to make
about $24,000 per year. She is excited to receive her first paycheck, which is given every two weeks. Courtney learns
that 15% of her gross pay will be withheld for federal income tax, 4% for state income tax and 6% for Social Security
and Medicare taxes. Help Courtney figure out what her take home, or net pay is, and how much she will pay in taxes
each paycheck.
A. How much money will Courtney pay in taxes each paycheck?
Federal: $20,400
State: $19,584
Social Security and Medicare: $18,408.96
B. What is Courtney’s net pay? In other words, how much money does Courtney take home from each paycheck after
paying all taxes? - $5591.04
C. Based on your knowledge of taxes, to which programs, services and accounts do you think the money withheld
from Courtney’s paycheck will go? To a Checking account.