So, what is financial literacy? It is a topic that, at times, can even be difficult for people with many years of work experience to understand, but don’t be intimidated! In its most basic form, financial literacy is the ability to understand financial matters. Since the concept is so broad, this post will be focusing on just one financial literacy subtopic that will increase your knowledge and understanding of your personal finances—decoding your paycheck.

Congratulations! You just received your first paycheck from your new job! Whether this is the very first time you have been paid or the 57,326^th, the feeling of getting a paycheck is certainly exciting. Your mind starts racing as you think of all the things you can spend this paycheck on: tickets to Taylor Swift’s 1989 Tour Concert, a selfie stick to get you looking better on Instagram, a celebratory Starbucks drink, or maybe even some flowers for your mom :). However, before even beginning to think of all the possible ways to spend your newly-acquired money, it is important to understand how to decode your paycheck. So check out the infographic below before you spend or, even better, save it!