AJ stands for Andrew Jackson, our 7th president. His reputation for toughness earned him the nickname "Old Hickory." A hero of the War of 1812, Jackson has appeared on the $20 bill since 1928.

Hey Dad, what's FICA?

"Hey, there's something wrong with my paycheck!" Juan Carlos can't believe it: $168.74?

He's supposed to get $206!

Juan figures he worked 25 hours over a two-week pay period. His salary is $8.24 an hour. That's $206, right?

Sort of. But Juan's not the only one who has claims on what he earns!

And what's true for Juan is true for you!

You Net What's Left

Juan's right. The hourly rate multiplied by the number of hours you work is your income, but it isn't what you get to take home.

There's a big difference between gross income, or hourly rate times the number of hours, and net income, or take-home pay.

Quick conversation starter: Ask people about their first jobs!
Ask them about their first jobs

People love to talk about themselves. Besides turning a so-so event into one that interests you, the "first job" question causes people to practically interview themselves.

Revelation—most people start out at the bottom:

• When no stores were interested in selling his jeans, Tommy Hillfiger offered the product to buyers from the trunk of his car;
• Seeking rehabilitation from a drug habit, rapper Coolio took a job as a firefighter;
• Cleaning a girl's locker room inspired Steven King's novel Carrie;
• Robin Williams actually had to keep his big mouth shut More first jobs of the rich and famous.Close
  when he performed as a street mime in the 1970s.

"When I finally relaxed, I asked my dad what FICA was. It was taking money out of my check and I never even heard of it," says Juan.

His father had explained taxes to him earlier, but Juan admits "it didn't really sink in" until he saw it on his first pay stub. Suddenly, "I realized the difference between how much you earn and how much you really end up with," he says.

Juan's gross income has been reduced by deductions.

Read Your Pay Stub

The pay stub (earnings statement) attached to your check includes your identification information and the pay period (dates you worked for the check). It also lists your gross income, all your deductions, and your net income (the amount you get to keep).

As an example, here's the earnings statement that flipped Juan's switch:

Employee name:	Juan Carlos
Employee's Social Security number:	xxx-xx-xxxx
Pay period:	June 12, 2005, to June 19, 2010
Gross income	$206.00
DEDUCTIONS
Federal income tax:	$15.00
State income tax:	$6.50
FICA:	$12.77
Medicare tax:	$2.99
TOTAL DEDUCTIONS	$37.26
Net income:	$168.74

Are you disappointed at the wages offered to high school students? You aren't the only one...

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