Basics / 25 min read
Navigating your first paycheck: what high schoolers need to know
A practical breakdown of gross pay, net pay, taxes, deductions, and the habits that keep first-job money organized.
The paycheck shock
Your expected pay and the deposit that lands in your account are different because taxes and deductions come out first. The useful number for everyday decisions is net pay, not gross pay.
What every pay stub shows
A pay stub usually separates earnings, mandatory taxes, and voluntary deductions. Check regular hours, overtime, federal withholding, FICA, state taxes, insurance, and retirement contributions.
Gross versus net
Budget from net income. If you plan around gross income, your spending plan starts with money you never actually receive.
Your first 30-day audit
Download your last few stubs, compare hours worked, identify each acronym, check direct deposit, and calculate your retention rate: net pay divided by gross pay.