Dude where’s my money? What to expect when first starting your career!

In college, the only kind of employment that I had was that of a work-study position. I had worked as a “librarian” at good ol’ Doheny Library. All the money that I earned I kept. There were no deductions from my paycheck because as a work-study student you do not get taxed. If I worked 10 hours a week and made $10 and hour, I would expect my paycheck to be $100 for one week.

After graduation, I was really excited to get my first real paycheck. I now was employed on a salary! My first pay day was a big shock to me. Although I was told that I would be making a certain amount, no one explained to me that the figure they spoke of was a gross income and not a net income. ( A gross income is the amount that you make before taxes and all the deductions. A net income is the “actual” amount that goes into your pocket.)

When I received my deduction summary, I saw amounts taken away for taxes, health insurance, disability insurance, dental plan, and my 401k (also known as a retirement fund). I had been spoiled as a student-worker because the government did not take any money.