Finances & Career Planning CHAPTER 11 & 12

 What is the Perfect Job?  Choose a job you love and you will never have to work a day in your life? Agree, Disagree?  What Is more important- money or enjoyment of what you do?  What Is the difference between a job and a career? CHOOSING A CAREER

 Why we Work:  Standard of living  Hobbies  Personal fulfillment  Career Trade-Offs  Family  Personal satisfaction  Flexible jobs CHOOSING A CAREER

 Education= POTENTIAL earning power  Ability to work with others  Creativity  Strong communication  Finding the right career  Aptitude (natural abilities you have) tests  Interest Inventories Test- what you enjoy  Balance between satisfaction and financial rewards CAREER TRAINING & SKILL DEVELOPMENT

STAGES OF CAREER PLANNING

CAREER PLAN OF ACTION

 Demographic Trends  Impact on job markets  Geographic Trends  Shifting financial centers  Cost of living  Salary  Economic Factors  Interest rates EXTERNAL FACTORS & OPPORTUNITIES WHEN THINKING OF A CAREER

 1, 2, 4, 5 page 328 DO NOW:

 Obtaining Employment Experience  Part-Time Work  Volunteer Work  Internships EMPLOYMENT SEARCH STRATEGIES

Career Information Sources Libraries Mass Media The Internet School Guidance Offices Community Organizations Professional Organizations Contacts

IDENTIFYING JOB OPPORTUNITIES Job Advertisements Job Fairs Employment Agencies Network

 Resume Resume  Summary  Education, training, experience, qualifications  Skills Resume  Highlights skills, abilities in specific categories  Communication, supervision, research  When to use:  Recent grads, changing careers  Chronological Resume  Year by year outline  Education, work experience, related information  Who should use:  Continuous work experience APPLYING FOR A JOB

 Cover Letter Cover Letter  Personal letter  Reason for interest in a job  Why they should interview you  Types of Cover Letters Types of Cover Letters  Paragraph  Comparison  bullet bullet  The Interview  Obtain information of potential employer  Strength, Weakness  Ask questions  Write a thank you letter  Considering a Job Position  Work environment  Salary  Benefits  Cafeteria Style Benefits- employees choose benefits that meet their needs  Pension Plans APPLYING FOR A JOB

LONG TERM CAREER DEVELOPMENT

 Money Management  Day-to-day financial activities  Get most of your money  Opportunity Costs  What money management techniques can you employ to achieve your future financial goals?  What are some financial documents and places where you should store them? CHAPTER 12: MONEY MANAGEMENT STRATEGIES

MONEY MANAGEMENT PRACTICES

ORGANIZATIONAL OF FINANCIAL DOCUMENTS Financial Documents Pay Stubs Automobile Titles Bank Statements Birth Certificates Marriage License Broker Reports Credit Card StatementsTax Forms

ORGANIZATION OF FINANCIAL DOCUMENTS

 Home Files  Bills  Tax records  Employment files  Financial service records  Money management records  Goals, current budget, balance sheet  Safe-Deposit Box  Car Title  Mortgage Papers  Birth Certificates  Investment papers  Contracts  Home Computer  Running summary of spending & deposits ORGANIZATION OF FINANCIAL DOCUMENTS

 What are examples of assets and liabilities? DO NOW

 Personal Financial Statement  Current financial position  Personal Balance Sheet  Net worth statement  What you own and what you owe  Step 1: Assets  Liquid (checking, savings accounts)  Real Estate  Personal Possessions- car, computer, etc...  Investment assets- IRA, stock investments  Step 2: Liabilities  Current Liability- credit cards, cable, etc…  Long Term Liability- mortgage, student loan, car loan  Step 3: Net worth-  assets minus liabilities  Indication of GENERAL financial situation  Step 4: Evaluate Financial Situation CC PERSONAL BALANCE SHEET

HOW TO INCREASE NET WORTH (COMPLETE PAGE 375) Reduce Expenses Reduce Spending and Debts Increase Your Savings Increase Your Investments How to Increase Your Net Worth

 Cash Flow  Movement of cash in and out of your bank account  Cash inflow  Income  Cash outflow  Discretionary income  $$$ left after paying essentials  Cash Flow Statement  Summary of cash inflow, outflow  Outflow- variable, fixed expenses  Net Cash Flow  Surplus- spend, save  Deficit- spent more than received CASH FLOW STATEMENT: INCOME VERSUS EXPENSES

DO NOW How are a personal balance sheet and cash flow statement similar? How are they different? What role does each play in the development of a personal financial plan? Both: list expenses/liabilities; snapshot of financial situation Cash flow-no liabilities breakdown Balance sheet- does not show income- only balance in account

Worksheets to give out: spending record- analyze a family budget PREPARING A BUDGET: PLAN FOR SPENDING & INVESTING $$$ 1. Set Your Financial Goals 2. Estimate Your Income 3. Budget for Unexpected Expenses 4. Budget for Fixed Expenses 5. Budget for Variable Expenses 6. Record What You Spend 7. Review Spending and Saving Patterns Steps to Developing a Budget

INCREASING YOUR SAVINGS Savings Strategies Pay Yourself First Use Payroll Savings Spend Less