Which job offer fits the budget?
Compare gross pay, assumed taxes, living costs, benefits and time.
Materials: calculator page, paper or this response sheet, and a basic calculator. “Keep for comparison” preserves up to three scenarios while that calculator tab stays open.
Prepare the fictional setup
Click “Load example” in the calculator before starting. The first scenario is fictional and may intentionally show a difficult financial outcome.
Complete setup reference
| Annual base salary ($) | 95000 |
|---|---|
| Expected annual bonus ($) | 5000 |
| Effective combined income & payroll tax rate (%) | 27 |
| Annual employee benefit premiums / deductions ($) | 2400 |
| Annual value of employer-paid benefits ($) | 5000 |
| Monthly commuting cost ($) | 300 |
| Monthly housing, childcare & other living costs ($) | 3500 |
| Work hours per week | 40 |
| Weeks worked per year | 48 |
| Commute hours per week | 5 |
| One-time unreimbursed moving / transition cost for B ($) | 3000 |
Typed responses stay in this tab. Save a PDF to keep your work. Do not enter real household or student financial information.
Warm-up · 5 minutes
List three reasons a larger salary might not leave more money to spend.
Investigate · 25–40 minutes
Step 1
Load the job-offer example. Record gross pay, monthly cash after entered costs and noncash benefits for each offer.
Step 2
Identify the tax-rate assumption and explain why it is not a marginal tax bracket.
Step 3
Keep the scenario. Increase Offer B’s monthly living costs by $500. Calculate the annual impact by hand.
Step 4
Compare work-plus-commute hours. Write one reason a person could rationally choose the offer with less cash.
Discuss & reflect · 10 minutes
Should retirement benefits be counted as money available for groceries today?
Extension
Design a remote-work offer and compare the value of reduced commuting costs and time.
Teacher guide and assessment
Expected reasoning
Noncash benefits are separate from spendable cash. A $500 monthly cost increase reduces annual cash by $6,000. Job stability, schedule, location and career development are relevant but are not fully captured in the dollar results.
Use the calculator’s breakdown to check rounding. The teacher explanation is tied to the fictional setup above, not to any learner’s edited scenario.
Quick assessment · 6 points
- 2 points: accurate calculations with units and labeled scenarios.
- 2 points: explains how changing one assumption changes the result.
- 2 points: supports a conclusion with evidence and names a limitation.
Support: work through one scenario together and use a simple table. Challenge: ask the learner to find a counterexample or solve a target by hand. These are flexible suggested grade bands, not a standards-alignment claim.
Methods & sources
Formula explanations, assumptions and source links are on the calculator page. This is an educational activity, not a recommendation to borrow, invest or make a purchase.