Financial Planning
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Unless you have an unlimited supply of money, chances are you work hard to earn income. Earning income is the foundation for financial success. Maybe you’ve heard the phrase, “there’s no such thing as a free lunch.” That means that everything costs you something – in one way or another – so you have to make choices. By considering the true cost of every choice, you can make better decisions throughout your life, such as choosing to invest in a college education so you can qualify for higher paying jobs.
How do you make more money?
One of the most important factors when searching for a job that pays more money is the level of education you’ve completed. The fastest growing career fields in America now require at least a two-year college degree (associate degree). Many jobs require either professional training or industry-approved certification (which typically takes training to earn). According to the National Council on Economic Education, four out of five millionaires are college graduates. Three-fourths of those millionaires are self-employed and consider themselves to be entrepreneurs.
College graduates earn on average $7,500 to $16,700 more each year than those without a college degree. Investing in yourself through higher education builds your human capital (your ability to produce), thus increasing your income level. The chart below illustrates this concept.
What You Can Expect to Earn in a Year |
|
|---|---|
Education |
Median Income |
| 9th to 12th grade, no diploma | $17,282 |
| High school diploma/GED | $22,078 |
| Some College/no degree | $25,358 |
| Associate degree | $29,033 |
| Bachelor's degree | $36,526 |
| Master's degree | $41,303 |
Why do some jobs pay more than others?
Many factors contribute to higher salaries in certain jobs. Some jobs reflect more responsibility than others, some require specialized skills, some require extensive travel and some require strenuous workloads and long hours. Research the career you’re interested in to find out more about salaries. For national and state information, you can contact the Bureau of Labor Statistics.
If you're interested in heading back to the classroom, contact the Oklahoma State Regents for Higher Education to explore academic options and the Oklahoma College Assistance Program for information about student financial aid.
Why are taxes and other deductions withheld from your paycheck?
You pay taxes in exchange for a variety of social services. The chart below outlines mandatory deductions and some of the services you receive.
Mandatory Paycheck Deductions |
||
|---|---|---|
Deduction |
What to I get? |
Who pays? |
| federal income tax | defense, human services, trade regulation | employee |
| state income tax | roads, safety, health (not all states require income tax) | employee |
| local income tax | schools, police, fire protection (not all areas require income tax) | employee |
| FICA: Social Security tax | provides for the elderly, surviving family members, and disability insurance | employee and employer |
| FICA: Medicare tax | provides for certain health care insurance | employee and employer |
