Transcript Financial Education for College Access and Success

Personal Finance: Module 1 Lesson 3
Essentials for the Journey
Determining Your Destiny • Slide 2
What is employee compensation?
It’s the total amount of pay provided to an employee in
exchange for services performed.
Employees can be paid in two ways:
 Direct (monetary)
 Indirect (non-monetary)
Video:
Understanding Employee Compensation
Determining Your Destiny • Slide 3
Types of Monetary Compensation

Salary

Wages

Overtime

Commission

Tips

Bonuses

Profit
Determining Your Destiny • Slide 4
Salary, Wages and Overtime

Salary – a fixed amount paid each pay period no matter
how many hours were actually worked


Wages – usually received as an hourly,
daily or weekly rate of pay; fluctuates
based on the actual amount of time the
employee worked during the pay period
Overtime – pay for hours worked over 40 hours in a week
usually paid at a rate of one and one-half times the
employee’s regular rate of pay
Determining Your Destiny • Slide 5
Commission, Tips and Bonuses

Commission – a common way to
motivate and pay sales people.
Usually a percentage of the total
price of the product or services sold
during a pay period

Tips – an extra amount a customer
pays to reward service workers for
providing quality service

Bonuses - an amount employer
pays in addition to regular pay to
reward good performance (by the
employee, company, or both)
Determining Your Destiny • Slide 6
Profit from Self-employment &
Entrepreneurship
A person works for him- or herself and owns
the business or enterprise

Self-employment
income is called profit.

Profit is the money left
over after all business
expenses are paid.
Determining Your Destiny • Slide 7
Employee Benefits
Indirect or non-monetary compensation provided
to employees (by their employer) in addition to
wages, salary and tips
College Grad
Evaluating Your Benefits Package
Determining Your Destiny • Slide 8
Basic Types of Employee Benefits

Paid leave

Group insurance

Retirement plans

Educational assistance
program

Profit-sharing
and stock options
Determining Your Destiny • Slide 9
Types of Paid Leave
 Holiday pay – employee is
paid for certain holidays even
when the place of employment
is closed

Sick leave – worker is paid even though he or
she is not at work due to illness
 Personal/annual leave – worker is paid
even though he or she is not at work because
of personal reasons (not due to illness)
Determining Your Destiny • Slide 10
Group Insurance
 Group
Health Insurance – employer-sponsored
insurance that helps provide protection against the costs of
medical services (and may include dental and vision
options) at a reduced cost to employee.
Flexible Spending Accounts
(FSA) – employee has money
deducted from paycheck to be set
aside to pay future healthcare
expenses that are not covered by
insurance.
Employment Benefits
Flexible Spending Accounts
Determining Your Destiny • Slide 11
Group Insurance

Group life insurance provides benefits to dependents
and/or others you name in the case of your death

Group disability insurance replaces lost income if you are
unable to work

Short-term group disability replaces a portion of
income for up to six months

Long-term group disability
replaces a portion of
income for longer than
six months
Determining Your Destiny • Slide 12
Comparing Employee Benefits
Worksheets
Health Insurance Cost
Compare Employee Benefits
Links and Activities
Benefits Wizard
Determining Your Destiny • Slide 13
Retirement Plans
Employer-sponsored plans that help employees be better
prepared for a time when they are retired and no longer
working.

401(k) Plans – employee chooses how much money
to deduct from each paycheck and how to invest it-many employers will offer to match a portion of the
employee’s contribution!
Begin Providing for Your Future

Pension Plans – retirement accounts funded entirely by
the employer. Value varies depending on years worked,
salary, etc.
What is a pension?
Determining Your Destiny • Slide 14
Educational Assistance Program
An employee benefit wherein some or all educational
expenses are funded by the employer

Policies are set by employer

May extend to family members
College access tip!
Having all or part of your
education paid for by an
employer is a very
valuable employee benefit!
Determining Your Destiny • Slide 15
Profit-Sharing and Stock Options
Profit-sharing – employees are paid a share of
the company’s profit
Stock options – employees receive shares of
stock in the company at a fixed price
Determining Your Destiny • Slide 16
“
Step with care and great tact
and remember that Life’s
a Great Balancing Act.
”
Oh, the Places You’ll Go! by Dr. Seuss
Determining Your Destiny • Slide 17
Work-life Balance

We all deserve to be able to balance our careers with rewarding personal
lives!

Employees who feel they have a better work-life balance tend to work
21% harder.

Find out as much as you can before
deciding if a career opportunity
is right for you…
o
o
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Flexible work schedule
On-call or overtime
Overnight travel
Family emergencies
Commute time
Health & Balance
Five Tips for Better Work-Life Balance
Determining Your Destiny • Slide 18
Financial Education for
College Access and Success
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