Ch. 2 Finances & Career Planning

1. Ch. 2 Finances & Career Planning Section 1 Planning Your Career Section 2 Employment and Career Development

2. Job: something you do mainly to earn money • Career: a commitment to working a field that you find interesting and fulfilling • “Choose a job you love, and you will never have to work a day in your life.” ― Confucius • Careers should fulfill your personal and financial goals Choosing a Career

3. Standard of living: a measure of quality of life based on the amounts and kids of goods and services a person can buy • What are some opportunity costs associated with choosing a career? • Trends: developments that mark changes in a particular area • Flexible: adjustable work hours so you will have more time at home Career Decision Trade-offs

5. Career Training/Skill Devlopment

6. Your Options Community College Trade School Career and Technical Schools Apprenticeships Public over Private college education Graduate programs & post baccalaureate certs.

7. Paying for All of This • Loans & Grants • Financial Aid – money you receive from outside source to help you pay for education • Loan: assistance from a bank that must be repaid with interest (awarded to almost anyone) • Grant: government money that is not repaid (must qualify) • 23 years old and under – parent must file w/ student income • 24 years and older – independent; student files

8. Paying for All of This cont’d Interest: the cost of your loan Subsidized student loan: interest is not charged until you graduate Unsubsidized student loan: interest is charged starting the day loan is issued You do not have to begin paying either until after graduation You may pay as you go FAFSA

9. Paying for All of This cont’d • Private student loans: issued by a bank or credit union • Higher interest rates because they are not from the government • Usually unsubsidized • Option if your income is too high to qualify for federal financial aid • Application process, show tax returns and paystubs • Scholarships!!!!

10. Potential earning power: the amount of money you may earn over time • Asset: a benefit • In addition to education, you need skills • Hard skills: specific, teachable activities that can be measured • Soft skills: more personal and hard to evaluate • Transferable skills: aptitude and knowledge acquired through personal experiences that can make you an asset in the workplace Career Training and Skill Development

11. Aptitude tests and interest inventories help you understand your qualities better and suggest careers to match your abilities • Aptitudes: natural abilities that people possess • Interest inventories: tests that help you identify the activities you enjoy the most • This info simply can point you in the right direction to find a balance between what you are good at and what you will enjoy Personal Factors

12. Assess personal factors. Research careers • Identify job opportunities in chosen field • Develop a resume and cover letter. Apply for jobs • Interview for available positions. Improve interviewing skills • Consider job offers. Accept a job that meets financial/personal requirements • Plan and implement a program for career development Stages of Career Planning

13. View the “bigger picture” on a national/global scale • You have no control over these factors but they may influence your decisions • Social influences: • Demographic trends • Geographic trends • External factors: • Economic conditions • Industry trends External Factors and Opportunities

14. Demographic trends: tendencies of people grouped by age, gender, ethnicity, education or income • More working parents • More elderly in population • More people earning higher education • More bi-lingual speaker laborers • Geographic trends: tendencies of people moving form one area of the country to another • Moving towards metropolitan areas • Affect earning levels Social Influences

15. Job market changes as economy does • High interest rates affect many job industries • High demand for certain types of goods/services affect job opportunities • Be aware of what job are in demand Economic Factors

16. Manufacturing workers have declined in totals • Lower demand of domestic goods • Automation replaces people • Service industry is increasing in job opportunity • Business that provides services for a fee • Increased technology • Lack of ability to perform job yourself • Convenience Trends in Technology and Industry

17. Information technology – website developers • Health care – lab techs • Business services – work coaches • Social services – eldercare coordinators • Hospitality – hotel managers • HR services – employment recruiters • Education – professors • Financial services – investment brokers Expanding career industries

18. Work experience (various types) is very important in the job process • Work-related training is valid • Part-time work – less than 40 hours/week • Volunteer work – opportunity to learn new skills and network without getting paid for your efforts • Internship – training is received by experienced professionals in a given field • Cooperative education – allows students to enhance classroom learning with part-time work related to their class Obtaining Employment Experience

19. School/community organizations • Athletics • Arts • Working in groups/teams as leader • Public speaking • Professional research • Technology skills • Budgeting • Organizational skills • Bi-linguals Obtaining Employment Experience

20. Libraries – ONET • Mass media • Internet • School counselor • Career counselor • Community organizations • Professional organizations • Contacts • Networking – making and using contacts to get job info and advice • Informational interview – meeting with a rep from your area of interest who can give you practical info about the career/company you’re considering Career Information Sources

21. Advertisements – trade journals, professional magazines, newspapers, community posts, career sites, career networking sites, • Job Fairs – companies, recruiters • Employment agencies – staffing agencies • Others – visit companies, call companies, network, search Identifying Job Opportunities

22. What defines a high standard of living? Question 1

23. Which one is a personal aptitude?~singing~communication skills Question 2

24. Assemble the stages of career planning in order • A. – Interview • B. – Identify job opportunities • C. – Plan a career development program • D. – Assess personal goals and interests • E. – Create a résumé and apply • F. – Consider job offers Question 3

25. Describe one current demographic trend that affects the current job market Question 4

26. In what state is there more financial opportunity?~New Jersey~Hawaii Question 5

27. State one reason why the service industry is thriving with job opportunities Question 6

28. What is one major difference between an internship and cooperative education? Question 7

29. Provide one valid source of career information Question 8

30. Provide one valid way of identifying job opportunities Question 9

31. Describe networking Question 10

32. Résumé – 1 to 2 page summary of your education, training, experience and qualifications in obtaining a position • Usually chronological if you have much experience • Skill based if you are a recent graduate or changing careers • Use strong action words • Do not use “I” • Include only relevant work • Try to tailor to the job you are applying for • Upload to career sites, mail, e-mail or upload to company employment site Applying for a job

33. Cover letter: personal letter you present when you send your résumé • Explains why you are interested in the job and why you believe you should be interviewed for it • Explains your experiences in a story-like format that coincides with your résumé • Allows you to go in-depth about important experiences/skills and relate them to job requirements • First impression • Personal block business letter format Applying for a job cont’d

34. Interview: a formal discussion between hirer and prospective job candidate that establishes the candidate’s suitability for the position • What are some common interview questions? • What are some things you SHOULD DO before an interview and while on it? • What are some things you should definitely NOT DO while on an interview? Applying for a job cont’d

36. Wages – getting paid for every hour worked • Minimum wage – lowest pay rate allowed by law for each hour worked • Set by Congress • States can increase • Overtime pay – pay for any hour worked over the set number of regular hours • At least 1 ½ • 40 hour week/holidays • Salary – set pay per month/year Earned Income

37. Earned Income • Tips – money given to a person for performing a service • Subject to income taxes • Based on quality and/or percentage of bill • Commission – a set fee or percentage of a sale paid to a person instead of or in addition to a salary • Inconsistent pay • Subject to income taxes • Does not come without a sale • Real estate agents, financial planners, salesperson, travel agent

38. Sample Pay Stub

39. Reading a Paycheck - Terms • Gross pay – total amount earned before deductions are subtracted • Pay rate x Hours worked = gross pay • Yearly salary = gross pay • Don’t forget about your overtime pay! • Net pay– your “take home” pay. The amount received after all deductions have been made • Deductions – state tax, federal tax, SS tax, Medicare tax, state disability tax, unemployment tax (required) health/life/disability insurance, retirement, your bills, other savings accounts (optional)

40. Taxes– compulsory charges imposed on citizens by local, state and the federal government. • IRS– the government agency which collects taxes for the federal government. • Pay Period – pay on a regular schedule weekly, bi-weekly or monthly • Federal Withholding Tax – the amount required by law for employers to withhold from earned wages to pay taxes. Reading a Paycheck

41. State Withholding Tax – the percentage deducted from an individual’s paycheck. • FICA – Federal Insurance Contributions Act includes two separate taxes, Social Security and Medicare. • Social Security – the nation’s retirement program. It provides retirement income for the elderly and disability income. • Medicare– the nation’s health care program for the elderly and the disabled. Reading a Paycheck – Terms

42. Retirement Plan – the amount an employee contributes each pay period to a retirement account. A specified amount is matched by the employer. • Medical – the amount taken from employee’s paycheck for medical benefits. • Year-to-date – the total of all the deductions which have been withheld from an individual’s paycheck from January 1, to the last day of the pay period. • Other personal contributions Reading a Paycheck - Terms

43. Sample Pay Stub

44. The work environment • Policies and procedures • Culture • Pay increases and promotions • How does it measure quality of work? • Factors affecting salary • Beginning • Education/experience • Size of company • Average salary for your job • Economy • As your career advances • Performance reviews • Policies Considering a Job Offer

45. Employee Benefits • Benefits: forms of pay other than salary/wages • Cafeteria plan: benefit plan that allows workers to choose form a number of options • Social Security: publicfunds that provide a degree of financial security to the public • Pension plan: retirement plan funded in part by your employer • Three types • Fixed income at retirement • Annual contribution by employer that builds up until you are ready to retire • 401K – your employer matches up to a certain % of your contributions

46. Tax-exempt benefits: benefit that is not taxable • You do not pay income taxes on these employer contributions • Medical/life insurance • Tax-deferred benefits: you will pay income taxes on these contributions at retirement • 401K • Pay even more tax if you withdrawl prematurely Benefits

47. Employee Benefits Paid holidays: paid for the day, do not work. If you work, you may earn time and a half Sick leave: covers days the worker is paid if he/she is too ill to go to work Personal leave: paid time away from work for personal reasons Maternity leave: paid or unpaid time away from work to take care of a new child Sabbatical: unpaid leave No work no pay scenarios

48. Other Perks Educational reimbursement Health/disability/life insurance Health flexible spending arrangements Expense account Travel Company car/cell Company gym Bonuses – year-end, holiday, projects Profit-sharing programs – when company does well, employees are paid part of that profit Stock option plans – buying company stock at a reduced price

49. Unearned Income Unearned income: money received from sources other than working a job Dividend: money earned as a stockholder Pension payments SS benefits Interest Gambling winnings Lottery Prizes Alimony All taxable, but at a lower rate

50. Equal Employment Opportunity: employers cannot discriminate against you for • Race • Color • Creed • National Origin • Religion • Gender • Disability • Genetics (diseases/ disabilities) • Gender(wages) • Retaliation • Marital status • Family status Your rights as an employee