Welcome to HIP3E – Managing Personal Resourcesjoansavoie.weebly.com/uploads/6/0/6/3/60634115/hip4o_… · Web viewUnit 3 Daily Living Skills. Making Decisions. Good decisions

HIP4O – Unit 3 June 2013

Unit 3 Daily Living Skills

Making Decisions

Good decisions result in better use of our time, money, and other personal resources. In this unit you will investigate common approaches to decision making, ultimately learning that the best decisions involve careful thought and planning. In this process, you will be made aware of the significant relationship between effective decision-making and well being. Through goal setting and skill-identification, you will develop a personal lifestyle and employment plan to help you gain some control over your destiny. This plan will enable you to understand how to use your time most effectively in attaining a goal, specifically your occupational goal.

What are Personal Resources

Personal resources can help you complete a task or accomplish a goal. There are three main personal resources that all people have at their disposal. These are:

time money talent

Time a limited resource, but it is the one resource of which each person has an equal amount. Everybody is given the same twenty-four-hour day. Using it properly, however, is not so easy. How often have you heard common phrases such as “Don’t waste my time” or “The time just flew by”? In order to benefit from this resource, you must develop strategies for using time effectively.

Money like time, is a limited resource. Unlike time, however, people have different amounts of this resource. For example, if you inherited a large sum of money, you would probably have more of this resource to work with than your friends would. Like time, however, money can be used improperly. We often hear “Don’t throw your money away” and “You spent too much money”. Wise use of money is not something that anyone learns overnight. Practice and knowledge are needed to obtain the riches from this resource.

Talent is a human resource. It is an ability in certain areas that you are born with. For example, you may have athletic ability or musical talent. Although you may be born with certain abilities, however, they won’t amount to much unless you develop them through training and practice. Interest plays a big role in developing a talent or a skill. If you see that your skill can be used doing something you are interested in, you will be more willing to put in the time and effort needed to perfect it.

Personal Life Management Page 1


There are other resources that can help you to make a decision or accomplish a goal.

Knowledge is an acquired personal resource. You aren’t born with it; you must learn it. You gain knowledge by collecting information, reading, listening, studying, thinking and observing. Knowledge cannot be used up.

Personal possessions are material items, tools and equipment that you own, that make life pleasant and help you get jobs done easily.

Personal attitude is another personal resource. Attitude is the way you think about things. It can be positive or negative. If you have a positive attitude, you will be committed to reaching a goal and will make use of all your resources in order to do so. A negative attitude, on the other hand, can be disabling. It can keep one from making the best use of available resources.

Family and friends can provide emotional, moral and financial support. They can be a source of informal leaning and skill development. You friends can also be a valuable resource. Like your family, they can give you emotional support. You can also acquire knowledge and skills from them,

Health – the healthier you are, the more likely you are to be able to get things done. Following guidelines for healthful living – eating nutritious foods and getting enough rest and exercise – ensures high levels of usable energy in your body. This energy can improve your productivity and help you use other resources efficiently.

Your community is a supportive back-up resource that can enrich your life.

All these additional resources help you use time, money and talent resources effectively. Achieving your goals and getting what you want out of life is easier when you use these resources in combination with one another,

Good decision making is the key to the effective use of resources.

Making a decision “Let me count the ways”

The media today plays a large part in the decisions that children, adolescents and people in general make in real life. The media uses common approaches that can sometimes hinder a person’s ability to make good rational choices.

Read the following article on page 3, “Selling America's Kids - Commercial Pressures on Kids of the 90's” \



Selling America's Kids - Commercial Pressures on Kids of the 90's

"It isn't enough to just advertise on television.... You've got to reach kids throughout their day--in school, as they're shopping in the mall ... or at the movies. You've got to become part of the fabric of their lives."

--Carol Herman, Senior Vice President, Grey Advertising

The estimated 30,000 TV ads beamed at kids each year represent the most obvious commercial pressure on children. But they are by no means the only advertising messages kids see, nor are they the most troubling. This report looks at other types of promotions heavily used in recent years--promotions that promise to continue growing in the 90's and beyond.

A Day in the Life of an American Kid

It's 7 a.m. as America's kid awakens on Ninja Turtle sheets. He rises, dons Superman underwear, a Dick Tracy T-shirt, and sits down to Nintendo breakfast cereal with his Simpsons bookbag beside him. His sister downs her pink Breakfast with Barbie cereal, ready to pick up her Garfield notebook and catch the school bus.

Licensing Characters that win kids' hearts, from Bart Simpson to Dick Tracy are used to sell kids everything from T-shirts to frozen pizza. The makers of Teenage Mutant Ninja Turtles, for example, have licensed 200 products, including lunch boxes, backpacks, pyjamas, pillow sets, jogging suits, shampoo, breakfast cereal, drinking straws, calendars, decals, and a talking toothbrush. In 1989 the Turtles earned more than $350 million from licensing.

Kids' emotional attachment to a character is transferred to a common product, like a T-shirt. That attachment overrides other considerations, like the quality and price of the T-shirt, or even the need for another T-shirt. The hook is affection--for a favourite show, movie, and character. The goal is a purchase. The target is a child. The problem is the pressure to purchase, over and over again, as new shows, movies, characters win their affection.

It's 9 a.m., and our American kid is in school, settling down to watch a 12-minute news program produced just for kids--with two minutes of ads. Unlike the commercials he sees at home, these are required viewing. The video equipment, as well as the program, Channel One, are provided free to schools by A Soft Drink Company, with one provision: Students must watch the program--and the commercials, too.

In School Promotions In class, a young girl receives a "TeenPak" -- a plastic bag containing product samples and coupons for Noxzema and Tampax -- thanks to a marketing agency that promises its



corporate clients to "place samples of your brand into the hands of up to two million junior and senior high school students in a controlled classroom environment."

The school day progresses. A "Total Health" program from NutraSweet teaches kids to use NutraSweet to control weight. "Wecology" magazine from McDonald's teaches the ecological advantages of Styrofoam packaging. "Changing," a booklet from Proctor & Gamble, teaches girls how to use Always, its brand of sanitary pads. Chef Boyardee's "Good Nutrition" program teaches kids to eat pizza and gives recipes that feature Chef Boyardee products. Why do companies provide these materials to schools? "School is ... the ideal time to influence attitudes, build long-term loyalties, introduce new products, test market, promote sampling and trial usage and -- above all -- to generate immediate sales.

School is out for the day, and our American kid rushes home, grabs a magazine, turns on the TV, and plops down on the couch for heavy-duty advertising pressure. Thousands of commercials a year are beamed at kids. Add to that the growing number of kids' magazines with paid ads. Some of this advertising spotlights rock celebrities and sports stars who throw their considerable kid-appeal behind products, influencing kids' product preferences and brand loyalty, sometimes to a tragic degree. In recent months, kids have robbed and even murdered for "status" sneakers endorsed by stars.

Celebrity Endorsements Celebrities are pitching to kids as never before. Fred Savage (The Wonder Years) and Kirk Cameron (Growing Pains) endorse Pepsi. Both are popular with kids under 17 years old. The rock group New Kids on the Block, very popular with young girls, sells Coke in TV commercials and radio ads. Paula Abdul once endorsed Reeboks in magazine ads that asked: "Don't you wish you were in her shoes?” Bo Jackson and Michael Jordan, kids' favourite athletes in a Sports Illustrated for Kids survey, endorse Nike. So do David Robinson, Andre Agassi, and others. Magic Johnson endorses Converse.

Studies point to the conflicts adolescents go through as they separate from their parents and start to forge their own identities -- conflicts reflected in ads that question authority or offer popularity as a result of purchasing a product. The predominant message celebrities are delivering to kids is "buy this."

The mail arrives, including Sports Illustrated magazine for our American kid, and Flare for his sister. The magazines describe merchandise and give discount coupons and other samples that entice people to buy.

It's early Friday evening, and our American kid, his sister and friends head out to the movie theatre. They see a Coke commercial before the movie starts. Will the kids have a three-hour respite from the commercial barrage of the day as they watch a double-feature? Not with Domino's Pizza, Pepsi, and Burger King as part of the action in Teenage Mutant



Ninja Turtles. Nor with Lucky Strike and Camel cigarettes prominently featured in Who Framed Roger Rabbit.

Product Placement Promotional placement of brand-name products in movies is growing rapidly. Producers charge from $10,000 to $1,000,000, depending on how the product is shown. Since kids are major consumers of movies (kids 12 to 17 attend movies twice as often as the over-18 crowd), they are an important audience for these promotional messages.

Coke, the on-screen sponsor of Tom Cruise's racecar in Days of Thunder, plans a multi-million dollar promotion around the movie. Pepsi placed its products in such films as Teenage Mutant Ninja Turtles, Flashdance, Back to the Future II, and Big. Burger King appeared in Teenage Mutant Ninja Turtles and Gremlins; McDonald's in Mac and Me and Dick Tracy; Domino's Pizza in Teenage Mutant Ninja Turtles; and Pizza Hut in Back to the Future II. Because of their high-volume sales, fast-food chains can help promote the movies they're placed in. Burger King conducted a promotional campaign around the Teenage Mutant Ninja Turtle movie before its release. McDonald's did the same with The Little Mermaid and Dick Tracy.

Cigarettes are in the act, too. In 1989, Marlboro cigarettes appeared in such movies as Crocodile Dundee, Superman II, Baby, and Risky Business. Camel cigarettes were in Desperately Seeking Susan and Who Framed Roger Rabbit. In that year, cigarette smoking was shown in 83 percent of films kids were likely to watch. Cigarettes placed in movies are presented in a positive light, without health warnings.

It's 10 p.m., and our American kid is curled up in bed, solving a maze in a magazine. Is he finally safe from commercial messages? No. The maze itself is an ad for Hershey's chocolate.

Advertorials One way to get kids to read a magazine ad and spend time with it is to make it look like a game, puzzle, advice column, comic strip -- anything but an ad. This type of advertising is increasingly common in children's publications. Foot Locker ads in Sports Illustrated looked like sports quizzes and hidden-object puzzles. Seventeen magazine's "Ask Loren" columns, promising "your personal answers to questions about make-up and fashion," were really ads for Epilady products. A Popeye comic in four different kids' magazines was really an ad for Instant Quaker Oatmeal. Disguising promotions as games and comics makes it harder for kids to be skeptical of advertising messages.

Conclusions Promotional campaigns and commercial messages permeate most waking hours of our lives. Many messages are hidden, appearing to be a school lesson, a kid's club, an entertaining movie, a magazine game or puzzle. Advertisers are attuned to kids' developmental stages -- to their need for peer approval, status, independence. The overwhelming message is that things make the person; that what's important is what you have, not who you are.



These pressures influence children's development as citizens, as well as consumers. The barrage of advertising encourages continuous consumption and acquisition at the expense of reasoned decision-making, thrift, and environmental sensitivity. At a time when kids need to learn how to consume thoughtfully, numerous promotional messages are teaching the opposite.

Assignment #1 Magazine ads

1. From the article you just read, list the ways that companies pressure children to make decisions about buying their products.

2. Do you feel companies should have the right to market their products using these methods?

3. List at least 5 items (you could list more) that you have purchased, not because you wanted or ever needed the product but just because of the type of advertising methods you were presented with. (could be TV, movie or magazine ads)

4. Look through popular magazines (Flare, Chatelaine, Sports Illustrated, MacLean etc) and find 6 different ads or articles that involve decisions making (e.g. an ad for smoking or alcohol, crash diets etc.). Clip each ad/article and place each under the heading “Good Decision” or “Poor Decision”

Example:

Good Decision Poor Decision

Decision-making styles

Not all individuals approach decision-making in the same manner, there are numerous different



styles of decision-making. One author (Dinklage, 1969) suggested that there are decision-makers, who take responsibility for their decisions and there are decision-makers, who try and transfer the responsibility for their decisions to other people.

While you should certainly be seeking the advice of others, it is important that you adopt a responsible decision-making strategy with regard to your own career decisions - it is your life, no one else can live it except you. Since you have to live by the consequences of various decisions, whether made by yourself or by others, you must make decisions that you can be confident will help you achieve what it is that you want.

The following list identifies a number of decision-making styles. As each of these styles is described, think to yourself whether that style is one where you take responsibility for your decision or one where you pass of the responsibility for your decision on to someone else." Review your own decision-making style or styles in important decisions that you have made in the past.

Impulse– where we take the first alternative that is presented, with little thought or examination: "Decide now; think later".

Intuition- where we decide based on what we feel, but what cannot be verbalized: "It just feels right".

Rational - where our strategy is based on a reasonable approach, with some balance between the thinking and the emotional: “I’m weighing the facts”.

Detail – where we have researched all the information and weighed all the facts and we come to a conclusion. “I have checked all the products, compared the pricing and the options and I will buy car A”

Habitual – there is no thought to this decision, the decision is made because that is the way it has always been done. “I will be a plumber because the is what my father was and so was my grandfather.”

Leave to Others - where we go along with someone else's plan, rather than making our own decision, even when it doesn't agree with our own beliefs: "If that's OK with you, then it's OK with me".

Procrastinating - where we delay thought and action on a problem: "I'll cross that bridge later".



Assignment #2 Decision-making styles

Decision-making style ExampleImpulse Sale itemsIntuition Lottery ticket numbersRational Buying a houseDetail Getting a tattooHabitual Walking route to schoolLeave to others School coursesProcrastinating Homework

A) Referring to the above chart, evaluate each decision-making style and explain why the decision-making style would be a positive or negative style for the example given.

Example: Impulse – Sale item (explain why the Impulse decision-making style would be a positive or negative way to make a decision about buying something on sale).

B) Reproduce the above chart and fill in an example from your life for each of the decision –making styles. If you never used a decision-making style, explain why you have not used this decision making style.

Making a decision

Making a decision should not be done without considerable thought. Here is a list of questions that a person should ask himself or herself before making a decision. You do not need to answer these questions for this lesson, but you should make note of these questions when you are faced with an important decision.

1. What are the advantages to making this decision? 2. What are the disadvantages to making this decision? 3. What is the best possible outcome? 4. What is the worst possible outcome? 5. What are the risks involved in making this decision? 6. Who are the people that will be affected by my decision? 7. Who is influencing my decision? 8. Is this decision temporary or permanent? Will I have the opportunity to change

my mind after making the decision



Assignment #3 Case Study – decision-making style

Case Study #1

Rameil and Anna are trying to decide where to go for their summer vacation. Fill in the chart below with examples of how Rameil and Anna might react if they used the following decision-making styles.

Style What Rameil and Anna will do?Deciding on impulseProcrastinatingDeciding rationallyDeciding intuitivelyLeaving it to othersHabitualStudying the details

Which of the above decision-making styles is the best one for Rameil and Anna to select when making this particular decision? Explain why.

Case Study #2

Juan is looking for an apartment. Which decision-making style would be the best style for Juan to use, explain why you think Juan should use that style?

Which decision-making style would be the worst decision-making style for Juan to use, explain why you think Juan should not use that particular style when looking for an apartment?

Your answer should be written in clear, concise well-constructed grammatically correct sentences.



Effective Decision Making

Good decision making is the key to the effective use of resources. A decision is a choice made from a number of options or possibilities. Decision making requires organization, planning and careful consideration of all the facts. You may not always make your decisions they way though. Remember in Lesson 6 we studied decision making skills, (Example: default, habit, impulse etc.) Each of these ways can be useful when the decision is not important. When dealing with important and complex matters, however, you should use a more systematic approach. Also remember the three personal resources talked about in lesson 6 - time, money and talent. Consider these when making decisions.

Josephine Foster, in her book Creative Living, developed a successful six-step method of decision making.

1. Define the problem2. Gather information, needs and values3. Review your wants, needs and values4. Examine the consequences of each choice5. Make the decision and act on it6. Evaluate and review the decision

Step 1: You must describe the problem so that you understand it clearly.

Step 2: You must collect as many facts and gain as much knowledge as you can in order to solve the problem. You then have to look at the various ways to solve the problem. For any given problem, you would probably have at least two choices.

Step 3: In order to make the best choice, you have to think about yourself. What are your needs? your wants? your value? What will happens a result of each of the available choices.

Step 4: You must think through carefully what the consequences will be.

Step 5: You must make a decision and carry it out. You base this decision on:

- the information you have collected- your thinking about the various alternatives and what their results

would be

Step 6: Evaluation of the decision. After some time has gone by, you should sit down and take a few moments to think about your decision. You should ask yourself if that was the best decision you could have made, knowing what you now know.



This method of decision making will be referred to throughout the course. It works for both minor and major decisions. It will help you make better use of personal resources.

It’s you turn to look at a decision.

Jack is 20 years old and he works as an apprentice on a printing company, earning $27,000. This is his first full-time job. Jack has a car and he relies heavily on it for transportation. For a while now, his car has not been operating properly. Jack’s uncle is a mechanic, and he has offered to help him fix his car. Jack has also been looking at new cars. As well, his friend has a used car for sale. Jack must make a decision.

Possible solution to Jack’s decision problem

In this situation money is the most important personal resource. Jack had to have a certain amount of money either to purchase a new or used car, or to have repairs made to his old car.

Jack could use time to help him solve his problem. He could get repairs done to his car so that he could get by with it for little longer, while he saves for a new car.

Jack could also use his talents. Since he works in a printing company, he is likely skilled at working with his hands. In this case, he could help his uncle with the temporary car repairs. In this way, he would also be saving himself some money.

Jack used the six-step method for decision making to arrive at a solution to his car problem. The steps he followed are outlined below:

Step 1: What should Jack do about transportation?

Step 2: Alternatives

Repair old car Buy new car Buy used car

Step 3: Value

Jack values his car and he relies heavily on it for transportation. Jack values new cars.

Needs – Jack needs a car, especially for work. Wants – Jack may want a new car, but he may not be able to afford one right

now.



Step 4: Consequences

Repair old car – Jack could use some hidden talents to repair his old car. This would also allow time for Jack to save his money for a new car.

Buy a new car – this may not be a wise decision at this point, especially if Jack has little money saved. He would obviously go into debt.

Buy used car – Jack may still go into debt purchasing the used car, depending on its price. Also Jack will have to be certain that the car is maintenance-free, something not always guaranteed in a used car.

Step 5: Decision

Jack will make repairs to his car and use the time to save his money for a new car.

Step 6: Jack has carried through with his decision

It is six months later and he has save $9,000. He knows he made the right decision because in three more moths he will have saved another $4,000. The he will purchase a new or used car.

Assignment #4 6-Step Decision Making Process

Choose one of the following scenarios and using the six-step method come up with a decision for the scenario you pick.

1. Cindy is 18 years old. Cindy's parents and her 23-year old brother Rich are going away for the weekend. Renee, Cindy's best friend, is pressuring her to throw a huge Saturday night party for all their friends since no one will be home. Renee even asked Rich if he could pick up a few kegs for them. Rich brought back two kegs of beer, a case of Zima, a bottle of Vodka, and a few bottles of wine, which he hid in the basement. Renee also spread the word around school for everyone to show up. Cindy now has over $100 worth of alcohol hid in the basement, an empty house for the weekend, and fifteen friends expected to show. What should she do?

2. Think of a decision that you are actually going to make in the future (examples: getting a job, buying a car, finish your credits for the high school diploma, quitting school). In writing apply the six-step decision making process for your decisions. In a paragraph explain the main issue involved in the decision. Explain your most important value in the situation as well as the impact the decision will have on others. Did the decision-making process help to make a better choice?



Facing the Challenge: To many decisions, not enough time

What is time? Time is a unique resource. It cannot be saved up like money or stockpiled like lumber or other materials. You are forced to spend time, whether you want to or not, at a fixed rate of 60 seconds per minute. It cannot be turned on and off like a radio or replaced like a used car part. You can’t turn it back and you can’t replace it.

How often have you said, “I wish I had more time”? The problem is not time itself, however, but rather what you do with the time you have. As Alan Lakein, a noted time management consultant, states – “Time is life. To waste your time is to waste your life, but to master your time is to master your life and make the most of it.”

Where does my time go? How many times have you asked yourself this question? Most people spend 80% of their time on items that produce only 20% of the real benefit.

Assignment #5 Decision making questionnaire

Test Your Decision Making Skills

Complete the following self-test. In each blank, respond with:1. often,2. occasionally 3. almost never.

There are no right or wrong answers. It will help you get a clear picture of your decision-making skills.

1. I feel anxious when I have to make a decision. _______________

2. I ask the advice of almost everyone I know before _______________making a decision.

3. I put off making decisions, thinking that someone will _______________decide for me.

4. I worry so much about a decision, I can’t think of anything _______________else.

5. I tend to dwell on decision that did not turn out the way I _______________wanted.

6. I try not to think about my priorities, plans and goals. _______________



7. Even when I have made up my mind, I still think about _______________other possibilities.

8. I have trouble with simple decisions - like what _______________movie to see, or what to order at a restaurant.

9. After buying a piece of clothing or a gift, I usually end up _______________returning it.

10. I have so many things to do and places to go in a day, _______________because I find it hard to say no.

11. I often waver between: Should I do it this way? _______________OR Should I do it that way?

12. When asked for my opinion, I often give a long list of _______________possibilities.

Scoring: Total your responses as follows: 5 points for each often, 3 points for each occasionally, 1 point for each almost never.

My score ___________

27 or less: Most of the time you feel good about yourself, know your own minds and say what you think. You are not afraid to make commitments, and you understand your actions. You are in control. You’re often and occasionally answers are areas to work on.

28 - 43: Most of the time you know what you want but there are times when you let others decide for you. When that happens, you usually regret it later. You can make decisions, so trust your instincts.

44 - 60: Your inability to make decisions hampers your daily functioning. You spend too much time agonizing over little things. Take some time thinking about your values and goals, practice making minor decisions. Begin to build your self-confidence and become a more decisive person.



Managing Financial Resources

Economic Costs and Personal Costs

Working in the paid work force has many advantages, but there are also costs that go along with working. For many those costs can eat away at a pay cheque and cause issues when it comes to saving and building a saving account.

Example:

Economic Costs Personal Costs Cost of clothing Safety equipment Tools Transportation Food Childcare

Lack of time Stress Health may breakdown Pressure on relationships Less time spent with family, friends Less leisure time Children may see parents less

Assignment #6 Economic Costs and Personal Costs

Meera has been offered two summer jobs, one at a steel factory and one at a retail clothing store. She is torn between which one to choose and which one to reject. She has 24 hours to make her decision. To help herself decide, Meera made a list of the details for each job.

Steel Factory Retail Clothing Store Rate of pay: $15.00/hour. Factory provides coveralls and a

hard hat. Must buy my own steel-toed boots.

Cafeteria on site, or pack a lunch. Would have to take the bus;

approximately 1 hour bus ride, including transfers.

12-hour shifts; 3-4 scheduled shifts per week.

Rate of pay: $11.00/hour. Required to wear one article of the

store’s clothing per shift. Employees get 50% off the store’s clothing.

Food court on site, or pack a lunch. Clothing store is in a local mall

within walking distance from my home.

7-hour shifts, 5 scheduled shifts per week.

What can you infer (presume) about the hidden costs associated with each job, based on the lists Meera has produced above?



Steel Factory Retail Clothing StoreCost of clothing

Safety equipment

Transportation

Food

Loss of personal time

Based on the hidden costs associated with each job, which job would you recommend for Meera to accept?

Earning a Pay Cheque

In this lesson you will examine the aspects of earning a pay cheque. The benefits and deductions on a pay stub, how various people earn a pay cheque and the right and responsibilities of employers and employees.

How You'll Get Paidhttp://www.payroll.ca/Template.cfm?Section=Paycheque

Your basic earnings can be paid in four major ways:

Salary: A yearly amount, divided by the number of pay periods in the year. For example, $26,000 divided by 26 pay periods equals a gross bi-weekly salary of $1,000.

Wages: A rate per hour worked, e.g., $8.65 per hour.



Piecework: A rate of pay per unit of production, e.g., $1.00 per box of peaches picked.

Commissions: A percentage of a selected "base" amount, e.g., a real estate agent's commission on the price of a house.

Pay periods vary, but the most common are bi-weekly (60% of workers are paid 26 times a year), followed by semi-monthly (24 times a year), and weekly (52 times a year, common in construction and the restaurant business). About 95% of people are paid on Thursday or Friday.

In addition to being required to pay employees on a regular pay-day, employers must pay any other amounts owed, such as:

overtime pay general holiday pay severance pay — within a specified time, which varies by jurisdiction.

Employees are usually paid these days by electronic funds transfer (i.e., the money is deposited directly into your bank account), and also by the old-fashioned payroll cheque. Though it has connotations of an "under-the-table" transaction, an employer may choose to pay an employee in cash. However, the employer still has to withhold and remit the required source deductions, report to and maintain records for the government, and provide a pay statement.


Gross earnings


Statement of Earnings

Here’s an explanation of each component of your pay cheque:

Gross earnings (GE): The total of all of your cash earnings, including regular pay (i.e., your straight salary or your hourly rate times the number of hours worked in the pay period); overtime pay; vacation pay.

Gross insurable earnings (GIE): Your total gross earnings plus the dollar value of cash-related taxable benefits (e.g., an employer's matching contributions to a group RRSP); and taxable allowances (e.g., things like car and meal allowances). Your Employment Insurance (EI) premiums are based on your gross insurable earnings.

Gross taxable/pensionable income (GTI/GPI): Your gross insurable earnings plus non-cash-related taxable benefits (e.g., employer's payment towards group term life insurance). This is the basis for your Canada Pension Plan (CPP) and Quebec Pension Plan (QPP) contributions.



Net taxable income (NTI): Before income tax deductions can be calculated, your net taxable income must be determined. So your gross pensionable income is reduced by your contributions to things like a registered pension plan or an RRSP, or your union dues (except for Quebec), as authorized by The Canada Revenue Agency (CRA) or the Ministère du Revenu du Québec (MRQ).

Statutory deductions: An employer has a legal obligation to withhold statutory deductions, which, in order of priority, are: CPP contributions, QPP contributions, EI premiums, and federal and provincial income taxes. Everywhere except in Quebec, provincial tax is collected as part of the federal income tax deduction. In Quebec, there are separate deductions for federal and provincial taxes.

DeductionsThe law says that the employer must deduct money from your pay cheque to pay for the following:

Canada Pension Plan (CPP) – You pay money into this plan each month that you work. When you retire, you may receive a pension from the government.

Employment Insurance (EI) – You pay money into this plan each month that you work. If you lose your job, you may receive money from the government while you look for a new job.

Income tax – This money helps to pay the costs of government expenses, such as health care and education.

Taxable benefits – Your employer may provide some benefits (for example, group life insurance plan, medical premiums, dental plan or pension plan) which are considered taxable benefits by Revenue Canada. The value of these benefits is deducted from your pay cheque.

Union dues – If you are in a union, and the union has an agreement with your employer, some money will be deducted to pay for the union dues.

Voluntary deductions – Your employer may deduct additional amounts for things that you have given your permission to deduct. For example, you may have chosen additional hospital or life insurance coverage, may make charitable donations, or purchase Canada Savings Bonds through deductions from your pay cheque.



Hours of work and overtimeWorkers in Ontario usually work eight hours a day and 40 hours a week. If your employer asks you to work more than this, he must pay you more money. This is called "overtime" pay. It is at least 1.5 times your hourly pay.

What if you get to work and there isn't any work to do? The employer must pay you for two hours of work. What if you work only a short time? Then the employer must pay you for two hours of work. Students under 18 years old must be paid for at least two hours if they work on a school day.

All jurisdictions require, at the very least, that the following be noted on an employee's pay stub or statement of wages — the employee's name, the date of the pay period, the rate of pay and hours worked at each rate, gross earnings, itemized deductions, and net pay. Different jurisdictions might have their own additional requirements of what has to be documented.

Assignment #7 Typical Paycheque Stub

Anyone who has ever cashed a paycheque knows that there’s a big difference between what you make and your actual take-home pay. If it’s not in your pocket, just where does all that money end up? Your pay is broken down into a number of components:

gross earnings; gross insurable earnings; gross pensionable earnings; net taxable income; statutory deductions; other deductions; and net pay.

Part 1: Using the pay-cheque on page 6, answer, in complete sentences, the following questions.

a) What is the period ending for this pay cheque?

b) What is the pay date of this cheque?

c) How many regular hours did this employee work during this pay period?

d) How much does this employee make an hour for regular hours worked?

e) Did this employee work any over time hours? If so how many?

f) What is the overtime rate for this employee?



g) What is the gross year-to-date earnings for this employee?

h) List all the deductions, for this period, taken off this employee’s pay?

i) List the statuatory deductions?

j) What does EI and CPP stand for?

k) What are the taxable benefits listed on this employee’s earning statement?

l) What are voluntary deductions? Does this employee have any? If so what are they?

m) What is this employee’s net pay for this pay period?

Part B: List at 5 more benefits that employers commonly offer to their employees that will show up as deductions on an employee’s pay-cheque. (do not use the ones from the sample Earnings Statement on the following page.)




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Welcome to HIP3E – Managing Personal Resourcesjoansavoie.weebly.com/uploads/6/0/6/3/60634115/hip4o_… · Web viewUnit 3 Daily Living Skills. Making Decisions. Good decisions