Demystifying your paycheck: Who FICA is and why he’s taking your money
Posted On June 6, 2018
During an NBA career that spanned two decades, Shaquille O’Neal made more money per season than most of us will ever see in our lives. But when he got his first paycheck, he had a revelation with which most of us can relate: “Who the hell is FICA?” he famously asked. “When I meet him, I’m going to punch him in the face.”
Michael Roe had a similar revelation, visiting his manager’s office after receiving his first paycheck to complain about being shortchanged. The experience inspired Roe to educate himself about personal finance and ultimately to create The Financial Millennial as a vehicle to share that knowledge with other young professionals and recent college graduates going through the same eye-opening process.
“It taught me the lesson that, if I take a look at this paycheck and I only recognize half the terms on there … it probably is in my best interest to learn as much as I can about it,” Roe says.
In this episode of “What’s Working with Cam Marston,” Roe shares the financial basics that new college graduates need to know when they enter the workforce, from budgeting to 401ks to deciphering the taxes that come out of your check each week.
Roe says it’s amazing how many college students – even those completing accounting or business degrees – don’t have a strong understanding of personal finance and how the tax system works. His advice to them: Take the initiative to learn about your own money. It’s nobody’s responsibility but yours.
The most important tool in getting a handle on personal finances, he says, is a budget. And there’s a wealth of tools available on the internet to help you get started.
Join us to hear how Roe approaches budgeting, why it’s important to start early in saving for retirement, how to ask for a raise, and other tips to help you make sure you’re getting the most out of your paycheck.