Minimum Wage

Terms

  • gross pay
  • net pay
  • federal minimum wage
  • salary
  • hourly wage

Computing Monthly Gross Pay

  1. Read the following article about Minimum Wage: http://fee.org/articles/the-minimum-wage-fairy-tale/
  2. Watch the video on this page.
  3. Who benefits from an increase in the Minimum Wage?
  4. What is the difference between being paid on an hourly basis and on a salary basis?
  5. Use the internet to find the current federal hourly minimum wage rate.
    $___________ per hour.
    Source:Does your state, county, or city have a different rate? If so, what is it? 
    $___________ per hour.
    Source:
  6. How many hours does the typical full-time employee work in a day? Week? Year?
    What about holidays, vacation, and sick days? Would any of these reduce the total hours per year? If so, by how much?___________ hrs. per day
    ___________ work days per week
    ___________ work weeks per year
    ___________ hrs. per year
  7. What would be the annual and average monthly gross pay for a full-time worker earning minimum wage?
    $___________ per year
    $___________ average per month
  8. If you were paid an hourly wage and were paid once a month, would every monthly paycheck be the same? Explain why or why not?
  9. What could you do as you are planning your budget to make sure you would always have enough cash to pay your bills?

Budget Spreadsheet

The gold cells are for a salary budget. The default is $25,000. You might want to research what the starting salary could be for a career you want to pursue. Once you determine the salary you want to use, enter your amount in the gold “Annual Salary” line at the top if different from $25,000.

Determine an hourly wage you would like to use. It is suggested you use the local minimum wage rate for your area, which will require a little research. But you can start with whatever wage you and your teacher agree to. Enter that amount in the blue hourly rate where $10.00 is the default.

The budget is set to calculate for a yearly figure by defaulting to 12 as the Total Number of Months.

PDF of Lesson for Download

Minimum-Wage

Quote to Ponder

If you wish to prosper, let your customer prosper. When people have learned this lesson, everyone will seek his individual welfare in the general welfare. Then jealousies between man and man, city and city, province and province, nation and nation, will no longer trouble the world.

— Frédéric Bastiat

To show your progress, after completing all the steps listed, scroll down to the "Mark Complete" button and click it to continue to the next page.

If the button is not visible, or inactive, be sure you have watched any video all the way through and passed any quiz listed at the bottom of the page. After you have marked the page complete, a green check mark will show next to its title in the side column.