Understanding Gross and Net Pay

What is Gross Pay?

• The amount of money you take home after all deductions.

• The total amount of money earned before any deductions.

• The amount of money you save each month.

• The amount of money you spend on groceries.

What is Net Pay?

• The total amount of money earned before any deductions.

• The amount of money you take home after all deductions.

• The amount of money you spend on entertainment.

• The amount of money you earn from investments.

Which of the following is a deduction from Gross Pay?

• Rent

• Taxes

• Grocery bills

• Movie tickets

Why is Net Pay important?

• It shows how much you earn before deductions.

• It helps you understand how much money you actually have to spend.

• It is the amount you owe in taxes.

• It is the amount you save each month.

• $800

• $1000

• $200

• $1200