One of the best things about any job is getting paid to do it! When you get your first paycheck, don't be so excited that you decide to spend it all on things you don't really need. Remember to save some of it; after all, that's why you develop a budget.

But before you do anything with your money, take a close look at the pay stub. You'll notice that some money was subtracted from your total amount. Why? It's because deductions were taken out of your check.

What Deductions?
Some of your earnings go to taxes. Every citizen of the United States who earns an income must pay taxes to the government.

Some deductions are required by the federal government. (These are the "Statutory" deductions noted on our sample.) Required deductions include:

• Federal Income Tax
• Federal Insurance Compensation Act (FICA) - It is the proper name of Social Security

Depending on where you live, you may have some or all of these other deductions:

• State Income Tax
• City Taxes
• SDI - State Disability Insurance

Here's a sample paycheck that explains the deductions. Move your mouse over any of the words in blue to find out more about that word.