Essential Question: Why does the amount we earn and the amount we take home rarely match up?

Article: How to Read a Paystub

Essential Question: Where does all this tax money actually go, and who decides?

Article: Where Do Our Federal Tax Dollar Go?

• Local taxes: sales, property

• State taxes: income, sales

• Federal taxes: income, payroll

• Real-life examples:

  • McDonald’s = sales tax

  • Vehicle tags in Harnett = property tax

  • Paycheck = state + federal income tax

• Visual pie charts on where tax money is spent

• PBS LearningMedia – “Taxes” (Social Studies Shorts, PBS)
  

  
  

• IRS: Student Site

• Freakonomics podcast clip

• CEE Financial Activities Pack

• Banzai Activity

Objective: Students will read and classify different types of taxes by identifying who collects them and what they fund.

Instructions:
1. Read the article linked below.
2. As you read, take notes on each type of tax you come across. Identify:
   - The type of tax (e.g., income tax, property tax, sales tax)
   - Which level of government collects it (local, state, or federal)
   - What the tax revenue is typically used to fund (e.g., education, roads, healthcare)
3. Use a three-column chart to organize your findings.
4. Be prepared to share your chart and discuss with a partner or small group.

Objective: Use the High School Banzai workbook to analyze how tax money is used and evaluate whether the allocations seem fair.

Instructions:
1. Open the Banzai High School Personal Finance Workbook using the link below.
2. In your group, focus on the sections that explain where taxes go and why.
3. Review the explanations of federal, state, and local tax spending.
4. As a group, discuss:
  - Do these tax-funded services benefit everyone equally?
  - Are there any areas you feel are overfunded or underfunded?
5. Write down one group takeaway to share aloud with the class.

Essential Question: What are the spending priorities in our local community?

Article: Local Tax: What it is and Types

• Introduce the Harnett County FY24 budget (focus on broad categories: schools, law enforcement, public health).

• Make local government real: roads they drive, police stations nearby, school funding impacts.

• Teach the concept of budgeting as prioritizing limited resources.

Essential Question: How do I file my taxes and not mess it up?

A) Burn it

B) Google ‘what is W-2'

C) Panic

D) Call your mom.

Why did you pick that answer?

Article: Understanding IRS Form W-2

Essential Question: Can you budget your life based on your real paycheck?

Article: How to Budget Money in 5 Steps

• Rent

• Food

• Gas

• Insurance

• Savings

Objective: Students will identify and label key components of a sample paystub, including gross pay, net pay, and common deductions.

Instructions:
1. Use the sample paystub on the next page.
2. Highlight or circle the following elements:
  - Gross Pay
  - Net Pay
  - Federal Tax Withheld
  - State Tax Withheld
  - Social Security (FICA)
  - Medicare
  - Any other deductions (retirement, insurance, etc.)
3. Use different colors for each label if possible.
4. In the space provided below, briefly describe the purpose of each deduction.

Objective: Work in groups to examine real paycheck deduction scenarios and identify what surprised you most.

Instructions:
1. Form groups of 3–4 students.
2. Open the linked activity guide below.
3. Work through the scenarios together, discussing each section as a group.
4. Pay special attention to the different types of deductions: Federal Tax, State Tax, Social Security, Medicare, and optional deductions.
5. Each group member should choose one surprising deduction or fact and prepare to share it with the class.
6. Be ready to explain WHY it surprised you and how it might impact a future paycheck.

• Explain what gross pay is vs. net pay.

• Break down common paycheck deductions: federal tax, state tax, Social Security (FICA), Medicare, optional deductions (insurance, retirement).

• Show a sample paycheck and walk students line-by-line through each section.

• Emphasize how withholding works and why it's required by law.

• FY24 Budget

  
  

• NC League of Municipalities

  
  

• FY26 Budget (deep dive)

• UNC Budget Simulation Tool

Objective: Students will review real-world budget data and identify which categories receive the most funding, then reflect on why those areas may be prioritized.

Instructions:
1. Open the Harnett County Budget link below.
2. Review the summary tables or charts provided in the budget overview.
3. On your own, identify the top three categories that receive the most funding.
4. Write a short paragraph (5-7 sentences) explaining why you think those categories were given priority in the county's budget.
5. Consider which of these categories affects your daily life the most.

Optional Simulation Tool to Explore Budget Decisions:

https://www.sog.unc.edu/resources/tools/budget-simulation

Objective: Students will simulate town budget negotiations to understand how local governments allocate tax revenue based on needs and priorities.

Instructions:
1. Divide the class into groups of 4–5 students.
2. Assign each student a role representing a town department:
  - Police Department
  - Parks and Recreation
  - Public Schools/Education
  - Roads and Transportation
  - Optional: Healthcare, Waste Management, Housing
3. Give each group a total town budget of $1,000 (in play money or tracked on a board or Google Sheet).
4. Students must each advocate for their department and negotiate how the money should be divided.
5. Each group must submit their final budget decision and give a 1-minute explanation for how and why they chose their allocations.
6. Encourage persuasive speaking and compromise.

Optional Tools:

- Printable play money (or use a Google Sheet budget tracker)

- Poster boards, chart paper, or whiteboards to display final budgets

• What a W-2 form looks like

• What a 1040 form does

• Terms like dependents, standard deduction, withholding

Use mock examples from local jobs. Students see how much they’d owe or get back based on fake W-2s.

Objective: Students will gain hands-on experience filing taxes by completing a simplified IRS 1040 form using a sample W-2.

Instructions:
1. Download and print the sample W-2 and simplified 1040 form using the links below.
2. Use a calculator or the built-in math function on your device to compute earnings, taxes withheld, and refund or amount owed.
3. Fill in the 1040 form with accurate information based on the W-2 provided.
4. Double-check your math, then turn in your completed form for review.

📄 Sample W-2 Form:

https://www.irs.gov/pub/irs-pdf/fw2.pdf

📄 Interactive W-2 Sample Guide:

https://support.adp.com/adp_payroll/content/hybrid/PDF/W2_Interactive.pdf

• Teams race to complete forms: mock W-2 + 1040

• One person at a time, each completes a section, then tags in next teammate

• First correct team wins!

• Optional: play music to keep energy up (school-safe Spotify playlist)

Tax Filing Relay – Interactive Classroom Activity

What it is:
A hands-on relay race where small teams compete to correctly fill out tax forms (W-4, W-2 summary, and simplified 1040). It keeps motivation high and supports active learning.

How to run it:

1. Prep Materials:

   • Create sample packets containing:

     • A mock W-2 form (showing wages, federal/state withholding, etc.)

     • A simplified 1040 form or worksheet

     • A mock pay stub (optional, to practice gross vs. net pay)

   • Print several packets — one per team of 4–6 students.

2. Split into Teams:

   • Form teams and line them up at a start line. Place the packet at a distance or separate table.

3. The Race:

   • When you shout “Go!”, the first student runs to the packet, fills in one part (e.g., Box 1 or Box 2 on the W-2), then runs back and tags the next teammate.

   • Each teammate does a different section in turn.

   • Continue until the forms are filled.

4. Check Work:

   • The first team to finish runs their forms to the “grading station” (you or a TA).

   • If everything is correct, they win that round. If not, they get a 1-minute penalty before retrying.

5. Debrief:

   • Review common errors (misplacing info, totals off, incorrectly transferring numbers).

   • Ask: “Why does accuracy matter on tax forms?” or “What else did you notice?”

Good Resource to Support the Relay

The IRS "Understanding Taxes" site offers teacher resources and interactive simulations on W-2s and filing Form 1040, which can help you prep accurate mock forms and guides for students.

IRS Understanding Taxes – Teacher Activities & Simulationsteacherspayteachers.comapps.irs.gov

Use their sample forms and step-by-step guidance to make sure your relay materials are accurate and clear.

• MIT Living Wage Calculator

• Banzai Budget Workbook

• Personal Finance Lab Game

• PBS Budgeting Video

  
  

Project Instructions (Read This First!)

1. Choose a real job from Erwin or Dunn, NC somewhere you could actually work (Hardee's, Zaxby's, CookOut, etc.).

2. Look up how much that job pays per hour. Use Indeed, Glassdoor, or real job listings.

3. Calculate your NET pay that's the money you actually take home after taxes. (Use a paycheck calculator!)

4. Make a monthly budget using that NET pay. You MUST include categories like rent, food, gas, phone, savings, and

fun.

5. Make sure your math adds up and fits within your monthly take-home pay. You'll lose points for going over!

6. You can choose how to present it Google Slides, a poster, a digital chart, or even Canva but it MUST be neat, clear,

and complete.

7. Include a short write-up or video explaining your spending choices. Why did you budget the way you did?

This is a test grade take your time and make it look good!

• What it does: Students drag-and-drop pay stub terms to their definitions, interpret sample paystubs, and calculate totals.

• Why it works: It builds hands-on understanding of paystub structure and deductions.

• What it does: Students set federal tax rates and retirement age, allot budgets across government programs, and balance them.

• Why it works: Offers real-time decision-making on tax allocation at the federal level.

• What it does: Includes bite-sized games like “Money Magic” or “Budgeting” that introduce tax and personal finance scenarios.

• Why it works: Simple games that reinforce concepts in a fun format.

• What it does: Simulates monthly income, budgeting needs and wants, credits, and emergency spending.

• Why it works: Students experience firsthand how different budget choices affect outcomes over time.

• What it does: Students simulate life phases—college to career—manage expenses, savings, and taxes through game mechanics like dice rolls and scenarios.

• Why it works: Emphasizes decision-making under financial unpredictability, including tax complexities.

• This continues the same simulation used in Day 3, reinforcing and applying budgeting skills with real job wages and living wage context.