Paycheck Math
Practice lesson. Nothing here is saved to My Plan.
The first paycheck surprise gets everyone: the number on your check is smaller than the wage you were promised. Here is where the money goes, and how to think in take-home terms before you commit to anything.
Before you start: where are you now?
Rate yourself honestly. Nobody sees this but you.
The take-home machine
Pick an hourly wage and see what a full-time month really looks like. (Estimates: taxes vary by state and situation, but the shape is always the same.)
Rule of thumb at starting wages: take-home is roughly 80 cents of every gross dollar. Now compare that monthly number to your county's real costs: MIT Living Wage Calculator (opens in new tab).
Quick check
After the lesson: where are you now?
The big idea
Budget with net, negotiate with gross, and never judge a wage until you have turned it into monthly take-home and held it up against real local costs. That one habit prevents most young-adult money disasters.