Acknowledgements (Opens in new window)
This course will help you manage your money. To do that you need to take a look at the money you earn, the money that is taken out of your paycheque through deductions, and the money you spend.
To balance the money coming in and the money going out you need a budget. As you work your way through the learning activities in this course, you will be prompted to add to a budget. The budget will be handed in at the end of the course. You will learn more about your budget at the end of this learning activity.
Video: “Gail Vaz-Oxlade talks about budgeting.”
Gail Vaz-Oxlade is a Canadian-Jamaican financial expert and television personality. From 2005-2016 she had a number of television programs discussing the money issues of Canadians who pool their household’s money together to share expenses. Watch as Gail Vaz-Oxlade talks about budgeting.
Gail explains the importance of having a budget and being honest about the money coming in and going out. She also says it is extremely important to track all your money. The first step in creating a budget is to know how much money is coming in and when.
Why is it important to use a budget? Refer to both the video clip and relevant examples from your own life.
Types of pay
There are five main ways to get paid for work:
- Hourly rate (with overtime)
- Salary plus commission
- Salary plus gratuities
- Annual salary
- Project rate
Think of an example of a job that would be paid using each of these remuneration methods.
Compare your thinking with the suggestions provided.
Here are just some examples:
Hourly – retail, assembly workers, some medical, skilled trades
Salary plus commission – retail, car salespeople, insurance salespeople
Salary plus gratuities – hairdressers, aestheticians, waiters/waitresses, bartenders, delivery people
Annual salary – teachers, bank managers, librarians, police
Project rate – computer software designers, skilled trades, artists, contract workers
Hourly rate
An hourly rate is the amount an employee is paid for every hour of work done.
If your hourly rate is $20, how much would you make after 25 hours of work? Look at the suggested answers to confirm your solution. The suggested answers can also help guide you through how to find the answer to the question if you are stuck.
Total pay
You would make $500 for 25 hours of work with an hourly rate of $20.
Hourly rate plus overtime
An overtime rate is the amount an employee is paid after a certain number of hours of work. In Ontario, regular pay is calculated up to 44 hours of work per week. After these 44 hours, an employee would be paid by the overtime rate. This overtime rate must be at least (or 1.5) times the regular pay. This is often referred to as ‘time and a half’. There also may be different overtime rates of weekends and holidays.
Examples:
Take a look at some examples of calculating wages based on hourly and overtime rates. Remember to check your solutions with the suggested answers.
- Determine the overtime rate based on ‘time and a half’ for a person whose hourly rate is $20.
Overtime Rate
The overtime rate is $30 for an hourly rate of $20
- Calculate the total pay for a person in Ontario who worked 53 hours in one week at an hourly rate of $16 per hour. This question has been broken down into steps that may help you organize the solution.
Salary plus commission
Commission is the amount of money employees are paid based on the dollar value of their sales. It is stated as a percentage of the sales within a certain period (usually weekly or monthly).
A percent is a portion of 100. When you work with percent, convert the percent to a decimal by dividing the percent by 100. What would 25% of $60 be?
Example:
Go through an example of calculating wages on commission. Remember to check your solutions with the suggested answers.

Yazmin (she/her) works in a furniture and appliance store and earns $15.50 per hour with 5% commission from sales. If she worked 30 hours in one week and sold merchandise worth $8000, what would her total pay be? This question has been broken down into steps that may help you organize the solution.
Salary plus gratuities
Gratuities are tips that a customer would pay for a service. Usually, the customer determines the amount of a tip. For example, in a restaurant, a tip of 15% - 20% is often suggested.
Example:
Investigate the following example in which wages are calculated to include gratuities. Remember to check your solutions with the suggested answers.

Trayvon (they/them), a hairdresser, earns $18 per hour plus gratuities. If they work 35 hours per week and earns $160 in gratuities, what is their total pay for that week?
Annual Salary and Project Rate Problems
An annual salary is a fixed amount of money paid to a person for regular work. It is usually calculated on the basis of working 2,000 hours per year.
A project rate is a fixed amount of money for completing a project. Many people who work on contracts would be on a project rate. For example, a carpenter might be paid $200 to build a coffee table.
Example:
Go through an example of calculating wages based on a project rate. Remember to check your solutions with the suggested answers.

Violet (she/her) has agreed to a contract to paint a large warehouse. The paint is supplied and the payment for the job is $1000. If it takes her 40 hours to finish the painting, what would she be earning per hour?
Hourly Pay
She would have an hourly rate of $25.
Try it!
Complete these practice questions on ways to earn money. You may want to work your answers out using a notebook either online or on paper.
Pay schedules
As you’ve learned, there are different ways to get paid; there are also different pay schedules.
Some people receive their paycheques every week, some every two weeks, some twice per month, and some once per month. How often they receive their paycheque depends on the company’s policy and the payroll department.
Fill in the answers to the following questions and check your solutions with the suggested answers. If you don’t know an answer, the suggested responses can help you figure out how to find it.
Examples:
Try some examples of calculating wages based on payment schedules. Remember to check your solutions with the suggested answers.

- Bun (she/her) works in a department store as a cashier and earns $14.50 per hour. Each week she works 25 hours. What is her total pay for one paycheque if her pay is calculated biweekly?

- Arun (he/him) is an artist who paints attractive designs on outdoor walls. The Government of Ontario hires him to paint colourful designs on a wall at Ontario Place. The project is worth $6,600 and he has six months to complete the work. If Arun receives his pay monthly, what would his pay be each month?
Pay each month
Arun will earn $1,100 each month.
- Emma (she/her) has just started working as a secretary for a small company. Her annual salary is $30,000. If she receives a paycheque twice per month, how much would she receive in each paycheque?
Remember getting paid twice per month, means 24 paycheques in a year.
Pay per paycheque
Emma would receive $1,250 in each paycheque.
Try it!
Complete these practice questions on payment schedules. You may want to work out your responses using a notebook either online or on paper.
Each learning activity will end with a consolidation section where you will typically complete three tasks:
- You will create a budget and add to it in each learning activity. This will be handed in at the end of Unit 4.
- As a self-directed learner, you will reflect on your learning and plan for success.
- You will have the opportunity for additional practice questions to support your learning.
First, let’s start with the Budget.
Case study: Creating a budget
In the Minds On, you explored a video on the importance of creating a budget. In order to create a budget, you must know how much money is coming in on each paycheque and when you’ll get paid. In addition, you will need to plan for your expenses.
You will be building your own budget throughout this course as a case study.
- Your budget will be part of the culminating project for this course. It is worth 15% of your course mark and will be handed in at the end of Unit 4.
- You will see this icon in almost each learning activity. This is when you should be adding to your budget template.
- You will have the opportunity to hand in a draft of your budget for feedback from your teacher three times—in unit 1, unit 2 and unit 3.
- Specific instructions in each learning activity will prompt you to add to your budget.
- Use the template provided to ensure you include all required information.
- Your work will be assessed using this rubric.
Take a moment to download the template for “Creating a budget (Opens in new window)”. Keep it handy since your will be referring to it often. You should work on one copy of your “Creating a budget”.
Here is your first budget task.
Researching Jobs Requiring Math for Your Case Study
Some students may have a job. If this is true for you, you can use your payment information for this part of the case study. If you don’t, or are interested, you can research a job you would like in the future. When researching a job you may want to consider:
- Future prospects
- Pay
- Education required
- Interest in that field of work
Use the Government of Ontario’s website link to “Search job profiles.” (Opens in new window)
You can also take a career quiz that may help you get started. You can find out many different pieces of information about the job you’re researching.
When you feel comfortable with your chosen researched job, or using the information from your current job, fill out the corresponding part of your budget.
U1LA1 - Ways to Earn Money |
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Type of pay (hourly, salary with commission, salary with gratuities, annual salary, project rate,) |
Annual Pay |
Pay per month |
Other considerations to mention |
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Review the success criteria
Self-check: Success Criteria
As a self-directed learner, you will be reflecting on your learning process and checking your understanding in each learning activity.This kind of reflection will help you plan for your success.
Rate your understanding from 1 – 5, where 1 = I am confused and 5 = I have a thorough understanding.
If you rated your understanding below 3, take some time now to think about how you will work to improve your rating where it is needed.
Additional practice
Notebook
In your notebook (online or on paper), answer the following questions if you would like to check your understanding of the skills featured in this learning activity. You can also refer back to these questions during your review at the end of the course. As you work through the following questions, check your answers with the suggested solutions.
For a job that pays a regular rate of $16 per hour
- In week 1, the number of hours worked is 48. What is the maximum number of hours that can be worked in a regular work week?
44
- How many overtime hours were worked in week 1?
Overtime hours
4 overtime hours were worked in week 1
- What is the total overtime pay for week 1?
Total overtime pay
$96 is the overtime pay for week 1
- What is the total pay for week 1?
Total pay
$800 is the total pay for week 1
- In week 2, the number of hours worked was 54. What is the maximum number of hours that can be worked in a regular work week?
44
- How many overtime hours were worked in week 2?
Overtime hours
10 overtime hours were worked in week 2
- What is the total regular pay for week 2?
Total regular pay
$704 is the total regular pay for week 2
- What is the total overtime pay for week 2?
Total overtime pay
$240 is the overtime pay for week 2
- What is the total pay for week 2?
Total pay
$944 is the total pay for week 2
- In week 3, the number of hours worked was 50. What is the maximum number of hours that can be worked in a regular work week?
44
- How many overtime hours were worked in week 3?
Overtime hours
6 overtime hours were worked in week 3
- What is the total regular pay for week 3?
Total regular pay
$704 is the total regular pay for week 1
- What is the total overtime pay for week 5?
Total overtime pay
$144 is the overtime pay for week 3
- What is the total pay for week 3?
Total pay
$848 is the total pay for week 3
For a sales position that has a regular rate of $12.50 per hour and 4% commission of sales
- In week 1, the total number of hours worked was 25 and total sales was $3,000. What is the total regular pay earned in week 1?
Total regular pay
$312.50 is the total regular pay for week 1
- What is the total amount of commission pay earned in week 1?
Total commission pay earned
$120 is the total commission pay for week 1
- What is the total pay earned in week 1?
Total pay
Total regular pay + Total commission pay
$432.50 is the total pay for week 1
- In week 2, the total number of hours worked was 40 and total sales was $5,500.
What is the total regular pay earned in week 2?
Total regular pay
$500 is the total regular pay for week 2
- What is the total amount of commission pay earned in week 2?
Total commission pay earned
$220 is the total commission pay for week 2
- What is the total pay earned in week 2?
Total pay
Total regular pay + Total commission pay
$720 is the total pay for week 2
- In week 3, the total number of hours worked was 32 and total sales was $4,800. What is the total regular pay earned in week 3?
Total regular pay
$400 is the total regular pay for week 3
- What is the total amount of commission pay earned in week 3?
Total commission pay earned
$192 is the total commission pay for week 3
- What is the total pay earned in week 3?
Total pay:
Total regular pay + Total commission pay
$592 is the total pay for week 3
Help Ima Waitress
Ima is a waitress in a restaurant. Her salary is $14.00 per hour plus gratuities (tips). If Ima works 38 hours in a week and earns $255.00 in gratuities, what is her total pay for the week? Enter your own response, then check your answer with the one provided.
Total hourly pay
Total pay
Ima would have total pay of $787 for the week.
Help Ori Engineer
Ori is a computer software engineer. A bank has hired him to resolve some glitches in the new software the bank is using. He has agreed to complete the job for $5,000. If it takes Ori 100 hours to fix the problem and complete the project, what would his hourly rate be?
Hourly rate
Ori’s hourly rate would be $50.
Which Job Pays More?
Determine which job pays more:
Job A: a sales position in a menswear retail store specializing in business clothes, such as suits, shirts, and jackets. The pay is $15 per hour and the position guarantees 40 hours each week. The company pays employees biweekly.
Job B: a sales position in women’s retail store specializing in casual wear, such as jeans, t-shirts, and blouses. The pay is $10 per hour plus 5% sales commission. The position guarantees 30 hours per week. The store location is very busy throughout the week and the sale clerk’s weekly sales are worth between $2,000 and $4,000 per week. Employees are paid weekly.
- Determine the salary for two weeks of job A. Work out your own response, then check your answer with the one provided.
Total hours worked
Total pay
Job A will pay $1,200 every two weeks.
- Determine the salary for two weeks of job B with $2,500 in sales each week. Work out your own response, then check your answer with the one provided.
Total hours worked
Total regular pay
Commission
(remember we are calculating for every two weeks)
Total pay
Job B will pay $850 every two weeks for $2,500 of sales each week.
- Determine the salary for two weeks of job B with $4,000 in sales each week. Work out your own response, then check your answers with those provided.
Total hours worked
Total regular pay
Commission
(remember we are calculating for every two weeks)
Total pay
Job B will pay $1,000 every two weeks for $4,000 of sales each week.
- Which job would you choose and why? Enter your own responses and then check your answers with those provided.
Answers may vary. Possible things to note Sometime commission-based jobs cause pressure. Some people thrive in jobs that focus on selling and this may encourage someone to take job B. Those who do not like the pressure of making sales may prefer to take job A.
Discover More
Hourly Wages in Ontario
In 2018, the minimum wage in Ontario was $14/h. If a person is paid hourly, they must receive $14/h. If their pay includes commission or gratuities, their total pay must not be less than they would receive if they work the same number of hours at $14/h.
For more information about working in Ontario, do a search on “Ontario Minimum Wage” or to folllow the link to “Employment Standards in Ontario. (Opens in new window) ”