Understanding Earnings

Curriculum Area and Objectives

Australian Curriculum: Year 11 General Mathematics – Consumer Arithmetic
This lesson plan aligns with the Australian Curriculum: Mathematics, specifically Unit 1 – Consumer Arithmetic, and aims to develop students’ financial literacy skills. Students will focus on understanding earnings, including salary, wages, overtime, as well as the purpose of superannuation.

The lesson is designed for a 60-minute period and incorporates active learning strategies to enhance engagement and foster real-world connections.

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Lesson Overview

By the end of the lesson, students will be able to:

1. Calculate earnings from hourly wages, salaries, and overtime rates.
2. Understand the structure and purpose of superannuation in Australia to build their financial knowledge.

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Materials Needed

• Whiteboard and markers
• Student devices (if available) or calculators
• Printed payslips provided to each student (teacher-created with different variables)
• "Earning and Superannuation Scenarios" handout (teacher-created with real-world scenarios, calculations, and questions)
• Scratch paper for note-taking
• (Optional) A guest speaker recording or script on superannuation (pre-created by the teacher)

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Structure of the Lesson (60 minutes)

1. Introduction and Icebreaker (10 minutes)

Objective: Build engagement and connect with prior knowledge.

1. Hook Question: Write on the whiteboard: “If you worked 10 hours at $23/hour, but you worked overtime for 3 of those hours at time-and-a-half, how much would you earn in total?”

   • Give students 2–3 minutes to individually calculate the answer as a warm-up and recall exercise (Answer: $264.50).

2. Class Discussion: Briefly discuss how different jobs have different pay structures (e.g., hourly wages, salaries, commission).

   • Link the activity to the real world: “What jobs or industries would typically pay hourly? What’s different for jobs with salaries?”

3. Set the lesson objectives by writing on the board:

   • “We’ll learn how to determine earnings from different pay models.”
   • “We’ll understand the long-term financial benefit of superannuation.”

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2. Calculating Earnings Activity (25 minutes)

Objective: Develop skills to calculate income from hourly wages, salary, and overtime.

a) Group Activity – Calculating Wages and Overtime (15 minutes)

1. Divide the class into 5 groups of four students each. Provide each group with mock payslips and example jobs (handouts). Each payslip includes:

   • Name, job type (e.g., retail assistant, office worker, delivery driver, etc.).
   • Their hourly rate, total hours worked, and the hours that qualify for overtime at 1.5x the rate.

   Task: Groups calculate total income for each payslip using:

   • Total pay = (Standard Hours × Hourly Pay Rate) + (Overtime Hours × Overtime Rate).

2. Rotate groups to assess each other’s calculations to ensure peer verification.

Extension (if time permits): Introduce the concept of double time for public holidays. How does this impact earnings?

b) Salaried Employees – Individual Work (10 minutes)

1. Provide an annual salary example (e.g., “$65,000 per year”) and ask students to calculate:

   • Weekly pay (divide by 52).
   • Fortnightly pay (divide by 26).
   • Monthly pay (divide by 12).

2. Discuss the differences between predictability of salaried income vs potential variability in wages based on hours worked.

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3. The Purpose of Superannuation (15 minutes)

Objective: Understand the role and importance of superannuation in Australia.

a) Class Presentation (5 minutes)

1. Use the whiteboard to introduce key points:

   • Superannuation is a mandatory savings scheme funded by employers for employees in Australia.
   • Current employer contribution rate (as of 2023) is 11% of ordinary time earnings.
   • Its purpose is to ensure people have savings for retirement.

2. Provide a brief example:

   • “You are an employee earning $65,000/year. Your employer contributes 11% of this to your super. How much is that per year? (Answer: $7,150)”

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b) Real-World Scenarios – Paired Work (7 minutes)

Hand out the "Earning and Superannuation Scenarios" worksheet, asking each pair to work through the following:

1. Scenario 1: Calculate superannuation contributions for two example employees with different incomes.
2. Scenario 2: Discuss how early contributions (starting work at age 18) grow over time due to compound interest, compared to starting later.

Ask pairs to share their answers and insights briefly with the class.

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4. Reflection and Summary (10 minutes)

Objective: Consolidate learning and reflect on takeaways.

1. Quick Quiz: Conduct a Kahoot (if devices are available) or a verbal quiz with 5 questions to test understanding:

   • E.g., “What is the overtime pay if the hourly rate is $25 and you work 4 hours extra?”

2. Class Reflection:

   • Ask: “What is one thing you learned today about earnings or superannuation that you didn’t know before?”
   • Summarise key concepts: “Knowing how to calculate your earnings and understanding superannuation can help you prepare for the future.”

3. Hand out a short “Superannuation Infographic” summarising its purpose and importance (teacher-made resource).

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Homework/Extension Activity

My Dream Job Earnings: Ask students to research their dream job, find out its typical salary or hourly rate in Australia, and calculate:

• Monthly take-home earnings before tax.
• Annual superannuation contributions at the current rate.

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Differentiation Strategies

• For Advanced Students: Introduce tax brackets and ask them to calculate income after tax or explore salary packaging.
• For Students Needing Support: Work in smaller groups with guided assistance, using simpler examples for overtime calculations.

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Assessment

• Informal assessment during group and paired activities (accuracy of calculations).
• Responses to reflection questions and participation in discussions.

This lesson not only meets curriculum standards but also provides students with practical knowledge that is highly relevant to their lives, equipping them with skills they will use long after Year 11.