In the last chapter, you learned about earning money and the most
common ways people are paid for their work. If you have ever had
a job and received a paycheck, you probably noticed that some of
the money you earned did not make it into your check. This chapter
is about understanding your paycheck and what happens to that
money. The skills you will learn in this chapter will be very valuable
in your future.
Understanding
Your Paycheck
Reading Prep. Review the table
of contents for this text. Trace the
development of the content that
is being presented from simple to
complex ideas.
College
and Career
Readiness
Section 2.1 Calculating Taxes
Section 2.2 Benefi ts
Section 2.3 Analyzing Pay
“It is very rewarding to have a job and make your own money.”
~ Micah B.
Money Matters
Checks
• The use of checks originated from bills of
exchange, which were used as early as the 8th
century to buy and sell products.
• The fi rst widespread use of checks was
documented in Holland in the early 1500s.
• In the late 17th century, the Bank of England
began issuing handwritten notes in exchange
for deposits to attract customers. Any note
presented to the Bank of England was
exchanged for its value in gold or coins.
• The term check can be traced back to 18th
century England, when serial numbers were
placed on these notes to keep track of, or check
on them.
• The Commercial Bank of Scotland was the fi rst
bank to personalize checks. In 1811, it started
printing checks with the customer’s name.
• The use of checks in the United States peaked
in the mid-1990s at more than 30 billion checks
per year.
• Shortly after the peak in use of physical checks,
their use quickly declined. Today, electronic
checks used to conduct online transactions are
more common than physical checks.