Read a first pay stub together

01What you need

• Their pay stub, printed or open in the payroll app, or the CFPB's free sample stub if they don't have one yetHave / Free
• A copy of the W-4 they filled out when they were hired, if they have oneHave
• A phone calculatorHave
• A pencil and paper for the gross-to-net mathHave

Where: Somewhere quiet with a pencil, where the pay stub isn't on display for the whole house.

02Steps

1. Find gross pay

   TogetherFind the hours and the hourly rate, multiply them, and compare with "gross pay" or "gross wages" on the stub. Say: "Gross is what you earned before anything comes out. First job of a pay stub: check you got paid for every hour you worked."

2. Walk the deductions

   TogetherGo line by line. The federal income tax line is based on the W-4 they filled out. Social Security and Medicare, often labeled FICA, come out too. State and local income tax depend on where they live and work. Ask: "Which line surprised you?"

3. Check the FICA math

   KidThe employee rates are 6.2% for Social Security and 1.45% for Medicare. Have them multiply gross pay by 0.062 and by 0.0145 on the phone, and compare with the stub. If it's far off, write down the question for payroll.

4. Land on net pay

   KidSubtract all the deductions from gross. That's net pay, take-home pay, what actually lands in their account. Say: "This is the number you plan with, not the hourly rate times hours."

5. Look at the W-4

   TogetherThe W-4 told their employer how much federal income tax to withhold. Look at their copy together. Explain that the IRS suggests a new W-4 each year or when life changes, and that the IRS Tax Withholding Estimator uses recent pay stubs to check it. At tax time, the W-2 they get is what they'll use to file.

6. Decide on a saving cut

   KidAsk: "What do you want this job to pay for, now and later?" Then let them choose a share of every net paycheck to save, like 10% or 25%, and write it down. If they have a bank account, set up an automatic transfer on payday.

03If it stalls

• If they don't have a job yet, use the CFPB sample stub and fill in the numbers from a job they're thinking about.
• If they're upset about how much came out, stay on the math tonight. Whether taxes are fair is a fine conversation for another night.
• If the numbers don't add up, write down the question and have them ask their manager or payroll themselves. That's a real-world skill too.
• If they want to save nothing, ask them to pick one goal, like a car or a phone, and work out together how many paychecks it would take.

04Variations

05Sources

• Reading a pay stub with your teen. The CFPB's parent activity 'What's on a pay stub' walks through a sample stub, defines gross wages as pay before deductions and net pay as take-home pay, shows federal tax, Social Security, Medicare and state tax lines, and suggests looking at the teen's W-4 and talking about saving and the W-2. Consumer Financial Protection Bureau Checked Oct 15, 2026
• The W-4, withholding and the W-2. The IRS 'Your first job' page says a new employer will ask for Form W-4 to decide how much to withhold, that employers withhold federal income tax, Social Security and state and local taxes, and that the W-2 is needed to file a tax return. Internal Revenue Service Checked Oct 15, 2026
• Social Security and Medicare rates. IRS Tax Topic 751 gives the employee rates of 6.2% for Social Security and 1.45% for Medicare. Internal Revenue Service Checked Oct 15, 2026
• Checking withholding. The IRS Tax Withholding Estimator estimates how much an employer should withhold, uses your most recent pay stubs, and can produce a filled-in W-4. The IRS 'About Form W-4' page suggests a new W-4 each year and when your situation changes. Internal Revenue Service Checked Oct 15, 2026