25 Money Management Tips for Young People
14. Understand the Impact of Taxes
It might surprise the average reader, but many young people who are first entering the work force do not really understand how income taxes work before getting their first paycheck. As a result, there can be a bit of a tendency to over-budget or rely on money that they don’t really have coming in each month after federal and state tax is accounted for along with Social Security taxes. As a result, when a company makes an offer to a young person for a starting salary, being able to determine roughly how much money he or she will be taking home is a critical skill. Depending on what location in the country that you live, there will be various calculators available to help determine how much money one will take home from their job each month based on the number of dependents being claimed and total income.