Your Paycheck

Once you start working, you’ll get a paycheck. Most employers pay their employees twice a month, or every other week.

Understanding Your Paycheck

Your paycheck may not actually be for as much money as you might expect. For example, if you are paid $15 an hour and work 40 hours a week for two weeks, you might expect to get a check for $1,200. However, a lot of things called deductions can make your actual check smaller. Your paycheck may include deductions for:

• Social Security taxes
• Income taxes
• Retirement plans
• Your portion of a health care insurance premium
• California State Disability Insurance (SDI)

All of these are actually good things. Social Security taxes will help you pay for your retirement or will give you Social Security Disability Insurance (SSDI) if your disability gets worse. Income taxes are used by your community to support public works. Paying into a retirement plan means that when you retire, you’ll be able to use that money for your expenses. Health care insurance means your medical expenses will be affordable.

Open a Bank Account and Deposit Your Paycheck

In the past, you may have paid for everything with cash and did not see a need to open a bank account. However, once you get a job, a bank account can make your life much easier and safer.

There are a few major reasons why it is important to get a bank account when you have a job:

• You now have more money than you’ve had before and need a place to keep it.
• You can have your check deposited automatically through direct deposit.
• You can get a checking account and pay your bills.

Unfortunately, many large banks charge monthly fees. However, many small banks and credit unions offer accounts with no fees. You should never pay monthly fees for having a bank account. Make sure to compare the fees at different banks and if you are currently being charged a fee for your account, you can switch banks!