youthmoney

Do young people understand their payslips? It would be amazing if they did. A lot of adults, even those who’ve been working for years, confess there are elements they’ve never bothered to find out about. They just glance at the bottom of the note – how much they get at the end of month.  A quick moan about the deductions, and then they forget it.

This is not smart. It’s better to get into the habit of checking that the gross pay is correct, especially if different hours and shifts are worked. Knowing that the correct tax code has been used, and questioning it if necessary, can save money too.

Young people in casual jobs need to know they have a right to payslip, and that warning bells should ring about any employer who pays cash in hand without a proper statement.

Knowing about the deductions – what tax and NI is for and where they go – is an important part of citizenship education. It’s also handy to get used to terms such as gross and net, which cause more confusion and uncertainty than they need to.

Direct gov has sound basic information. So does the site.org.

For a flash interactive internet guide, with a voice-over and clickable sections see lifetracks.