2 NET INCOME and PURCHASING POWER
Lesson 2.1: Net Income and Deductions
In this lesson, you will explore the concept of net income. You will find out that when you receive a pay cheque, you will be contributing towards taxes: federal and provincial income taxes; several social services such as Employment Insurance (EI), Canada Pension Plan (CPP); and other deductions.
Lesson 2.2: Approximating Net Income
Your employer pays Canada Revenue Agency (CRA) your deductions on your behalf. You will learn how to approximate net income using online payroll calculators.
Lesson 2.3: Net Income and Personal Expenses
In this lesson, you will learn how to categorize essential and non-essential expenses that occur in your life. You will further identify these expenses as fixed and variable expenses. In light of this, you will also make decisions on how to budget your money with relation to your expenses.
Lesson 2.4: Purchasing Power
Purchasing power is how able you are to buy what you want when you want. In this lesson, you will learn what impacts on your purchasing power and how to adjust your budgeting so that your purchasing power increases.