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Tuesday, 25 February 2020

Life After Education . . .

Let’s get you thinking.

Look at the images displayed. How might a person achieve these things? Write your ideas around the images on your sheet. How would you prioritise these things?

Somewhere to live

A form of transport

Food!

A social life

Or maybe even a bit of luxury with a holiday. . .

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3 of 18

Monday, 24 February 2020

Life After Education . . .

Did you think of these:

Somewhere to live

A form of transport

Food!

A social life

Or maybe even a bit of luxury with a holiday. . .

Employment

Apprenticeships

University

Finance*

Loan*

Overdraft *

* we’ll discuss these later . . .

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Monday, 24 February 2020

Life After Education . . .

Apprenticeships

Complete task 1 on your sheet. Think about: benefits, what you could expect from each.

Work with experienced staff, gain specific skills, earn money, study time.

Apprenticeships can take 1-5 years to complete. You’ll get the National Minimum Wage £3.90 however some employers will pay more.

The average working week is 35 hours. What’s the minimum you’d earn as an apprentice?

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Monday, 24 February 2020

Life After Education . . .

Employment

For national minimum wages find out more here: https://www.gov.uk/national-minimum-wage-rates . There are a range of ways you can be paid:

  • Salary – set amount of money paid once per month based on the amount you earn per year.
  • Hourly rate – set amount for each hour your work, the more you do the more you earn. Usually paid weekly or monthly,
  • Piece work – set amount for every unit produced (e.g. picking a full punnet of raspberries). The more units you produce the more you are paid. This can be daily, weekly or monthly.
  • Commission – Often linked to a salary in sales related jobs. E.g. you make a share of the sales you make. This is in addition to a monthly salary.

There are also different types of contract: full time (35 hours a week), part time (fewer hours, same benefits), short term (full or part time basis for a fixed period of time) and zero hours contract (casual, no guarantee of work)

Complete task 1 on your sheet. Think about: benefits, what you could expect from each.

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Monday, 24 February 2020

Life After Education . . .

University

Most courses last 3 years. There are costs to think about but quite often the benefits of the qualification mean you can gain a higher paid job:

  • Tuition Fees: The average cost for 2018/19 was £9,250 per year.
  • Living Costs: For travel, accommodation, food, clothes, books and travel etc. The average cost is about £230 per week.

Based on this how much would you need per month? Where might this come from?

Student finance: Where you can borrow up to £8,700 for the year. This is dependent up on household income (i.e. parents, carers, guardians). This is a maintenance loan.

Complete task 1 on your sheet. Think about: benefits, what you could expect from each.

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Monday, 24 February 2020

Life After Education . . .

University

Cont . . .

Don’t let the cost put you off!

  1. You only start repaying any loans once you have got your degree, left university and have a job earning more than £25, 000 per year.

  • After 30 years any remaining debt is wiped. That means even if you’ve never had a job earning over the threshold – it’ll still be wiped! Bonus!

  • The loan repayments are automatically made: This means your employer will automatically deduct the payment from your salary before you get it so you don’t have to worry about making a payment.

  • It DOES NOT go on your credit file. That means it will not impact your credit worthiness.

Complete task 1 on your sheet. Think about: benefits, what you could expect from each.

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Wednesday, 26 February 2020

Life After Education . . .

Either way, you’ve now got a job, and you just got paid! BONUS!

Task: Take a look at the image in the middle of your tables.

What is it?

Do you know what it all means?

  1. Label what you know.

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10 of 18

Wednesday, 26 February 2020

Life After Education . . .

Personal information, including who your employer is (who’s paying you), the date you will be paid and confirmation of who you are.

NI Number: This shows you have the right to work in the UK. Every person has their own unique number

Gross Pay: This is your total before any deductions

Deductions: The total amount taken from your gross pay for tax, national insurance and any pension contributions. A total amount is given along with a break down of amounts. Any student loan contributions will be shown here also.

BACS: This is the method by which you’re paid – which is a bank to bank transfer i.e. the bank of your employer transfers the money to you on a given date – this is usually monthly however some employers pay employees weekly.

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Monday, 24 February 2020

Life After Education . . .

On your payslip you’ll see you have deductions for Tax, National Insurance and pensions. These are compulsory deductions because you must pay them. But do you know what they are?

Task: Match the terms you’ll find on your payslip to their definitions.

Check it: watch https://www.youtube.com/watch?v=O3dDaEkykto

Income Tax

Money earned above the income you make. For 2018/19 this was anything earned over £11,850 PA. Anything you earn above this up to £46, 350 is taxed at 20%, above this it’s 50%

Tax Code

Shows hoe much money you are allowed to earn before you start to pay Income Tax. It’s the first 4 numbers of your tax allowance followed by the letter ‘L’.

National Insurance

The number you receive when you are 16 and stays with you for life. The amount you pay is approximately 12% of your income. Contributions help build up your entitlement to benefits such as a state pension or maternity allowance.

Gross Pay

The total income that you receive before any deductions are made.

Net Pay

The pay you have left after your deductions have been removed. It’s sometimes called your take home pay. All these deductions are taken before you receive any money. This system is called Pay As You Earn (PAYE)

BACS

Method of payment meaning money is transferred from one bank account to another bank account i.e. yours.

Pension contributions

The amount you/you employer pay into you pension, this is an income that is paid to a person who does not work anymore because they have reached retirement age.

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National Insurance

Money earned above the income you make. For 2018/19 this was anything earned over £11,850 PA. Anything you earn above this up to £46, 350 is taxed at 20%, above this it’s 50%

Income Tax

Shows hoe much money you are allowed to earn before you start to pay Income Tax. It’s the first 4 numbers of your tax allowance followed by the letter ‘L’.

Net Pay

The number you receive when you are 16 and stays with you for life. The amount you pay is approximately 12% of your income. Contributions help build up your entitlement to benefits such as a state pension or maternity allowance.

Tax Code

The total income that you receive before any deductions are made.

BACS

The pay you have left after your deductions have been removed. It’s sometimes called your take home pay. All these deductions are taken before you receive any money. This system is called Pay As You Earn (PAYE)

Pension Contribution

Method of payment meaning money is transferred from one bank account to another bank account i.e. yours.

Gross Pay

The amount you/you employer pay into you pension, this is an income that is paid to a person who does not work anymore because they have reached retirement age.

National Insurance

Money earned above the income you make. For 2018/19 this was anything earned over £11,850 PA. Anything you earn above this up to £46, 350 is taxed at 20%, above this it’s 50%

Income Tax

Shows hoe much money you are allowed to earn before you start to pay Income Tax. It’s the first 4 numbers of your tax allowance followed by the letter ‘L’.

Net Pay

The number you receive when you are 16 and stays with you for life. The amount you pay is approximately 12% of your income. Contributions help build up your entitlement to benefits such as a state pension or maternity allowance.

Tax Code

The total income that you receive before any deductions are made.

BACS

The pay you have left after your deductions have been removed. It’s sometimes called your take home pay. All these deductions are taken before you receive any money. This system is called Pay As You Earn (PAYE)

Pension Contribution

Method of payment meaning money is transferred from one bank account to another bank account i.e. yours.

Gross Pay

The amount you/you employer pay into you pension, this is an income that is paid to a person who does not work anymore because they have reached retirement age.

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Monday, 24 February 2020

Life After Education . . .

Either way, you’ve now got a job, and you just got paid! BONUS!

So, priority 1 = Budgeting.

There are all sorts of things that your money will contribute to.

What do you think these will be?

Create a mind map of your ideas.

Budgeting

Housing

Household

Travel

Savings

What it includes: bills – gas, electric, water, internet, TV license, phone, council tax, rent or mortgage

What it includes: food, insurances (contents if you rent or buildings and contents if you own)

What it includes: Road tax, insurance, fuel, parking, tickets (if you’re using public), finance

What it includes: birthdays, holidays, clothing, Christmas.

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Tuesday, 25 February 2020

Life After Education . . .

Your task . . .

The remainder of the session will be for you to review your future life choices from a realistic point of view.

Step 1: Select your job.

What do you want to do ‘when you grow up’?!

  • Research potential future options. Find out:
  • Payment method
  • Hourly rate or salaried? What’s the amount?
  • Monthly take home – with tax deductions. Use this to help: https://www.moneysavingexpert.com/tax-calculator/

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Tuesday, 25 February 2020

Life After Education . . .

Your task . . .

Step 2: Move out! – no – you can’t stay at home forever!

Are you going to find somewhere to rent or buy?

If you’re renting you usually have to pay a small amount upfront i.e. a month in advance, you can also rent furnished properties (meaning you don’t have to buy all the furniture)

If you buy, you need to think about what’s affordable, what type of house do you want compared to what you can realistically achieve? How long will it take you to save a deposit for a mortgage? (at least 10% although there are help to buy schemes available)

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Tuesday, 25 February 2020

Life After Education . . .

Your task . . .

Step 3: Budget!

Think back to what we discussed about how you will use your money.

Using the table provided on your sheet complete an estimate of what you think you’ll spend or what you’d like to spend on each thing.

Then, research it! How much does it actually cost? What would you change?

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Tuesday, 25 February 2020

Life After Education . . .

Your task . . .

Step 4: Extension: Your research isn’t designed to be doom and gloom! But is designed to get you thinking and to be prepared.

What if your situation changes?

What is the cost of children?

How would you afford things?

What is:

  • Finance
  • APR
  • Loans
  • Overdraft

18 of 18

Tuesday, 25 February 2020

Life After Education . . .

Let’s reflect . . .

Using the post it note given write down the most valuable message/piece of information or new knowledge you will take away from today