Finances and Career Planning Chapter 4 Finances and Career Planning

Choosing a Career What is the difference between a job and a career? Can a job become a career? Job: Work that you do mainly to earn money Career: A commitment to work in a field that you find interesting and fulfilling, continued training with growth potential Careers will also affect personal life Choose a job based on money or choose based on satisfaction

Trade-offs of Career Decisions Choice of career will affect the amount of money you make, people you meet, and amount of spare time Standard of Living: A measure of quality of life based on the amounts and kinds of goods and services a person can buy. Also work to pay for hobbies and activities they enjoy Others pursue jobs for money and personal fulfillment, careers reflect interests, values, and goals

Cont. Career will involve trade-offs or opportunity costs People will often devote most of time and energy to their work Flexibility (flex scheduling, cafeteria benefits) Trends: Developments that mark changes in a particular area. Many people making decisions that allow more family time, time for hobbies, and interests. (turn down transfers and promotions) More you know about your interests, goals, values and needs the easier it is to choose a career.

Career Training and Skill Development Obtain as much education as possible, helps achieve goals Potential Earning Power: the amount of money you earn over time. Having more education increases. Field of education also will affect your salary Must adapt to environment: Work well with others, strive to do best, creativity

Personal Factors Can take special tests to learn about abilities, interests, and personal qualities Aptitude Test & Interest Inventory Aptitudes: Natural abilities that people possess Interest Inventory: Tests that help you identify the activities you enjoy the most, along with those you dislike Won’t lead you to the exact career, but guide you in the right direction. Want to find job that balances financial rewards and personal satisfaction

Making Career Decisions Changes in personal life and in society will affect your work life Fig. 1 (pg. 93) shows stages of career planning, changes, and advancements If unsure about direction to take, talk to someone in your field. What do they like and dislike? How did they get into the field?

External Factors and Opportunities How will the following factors affect you? Social Influences: Demographic Trends: Ways in which groups of people can change over time Recent Demographic Trends: More working parents/single parents (increases food industry and child care), More leisure time (boosts health, physical fitness and recreation products), More elderly people in overall population (increase in retirement facilities, health care, and travel services), Demand for ongoing employment training (teachers and trainers in org.) What effect will baby boomers have on you?

Cont. Geographic Trends: Changes that occur when people move from one area of the country to another and its financial centers shift location Fast growing markets: Arizona, Florida, Georgia, Nevada, North Carolina, New Jersey, Arkansas Geographic Locations: Big Cities=Higher cost of living

Economic Factors Career opportunities influenced by high interest rates, price increases, or decreased demand for certain goods and services Major affect on construction, real estate, auto sales

Trends in Industry and Technology Manufacturing jobs are on the decline, service and technology on the rise International competition major factor for decline, automation also a factor Technological advances can quickly make your product obsolete Service Industry: Those that provide services for a fee will offer many opportunities Need lots of computer/internet knowledge Pg. 98 Examples of Service Industries Pg. 99 Document Detective

Employment and Career Development Section 4.2 Employment and Career Development

Employment Search Strategies What experiences have you encountered that may help you get a job?

Obtaining Employment Experience Important to have work experience, even at a young age Part-Time Work: Summer or part time job, get experience in a field you may be interested, temporary positions Volunteer Work: Learn new skills, develop work habits, make professional contacts Internships and Cooperative Education: Internship- Position in which a person receives training by working with people who are experienced in a particular field. Can sometimes lead to full time employment

Cont. Cooperative Education: Programs that allow students to enhance classroom learning with part-time work related to their majors or interests. Spend part of time in class other half on related job

Class Projects or After-School Activities: Benefits: Managing, organizing, and coordinating people Public Speaking Goal setting, planning, and supervising Financial planning and budgeting Conducting Research

Using Career Information Sources Sources to get up-to-date information Libraries Mass Media (newspapers) The Internet (tips/suggestions, posting sites) School Guidance office Community organizations Professional Organizations (esp. in college) Contacts (teachers, family, friends) Networking: Way of making and using contacts to get job information and advice Informational Interview: Meeting with someone who works in your area of interest, used to get more information

Identifying Job Opportunities Job Advertisements: From newspapers, internet, etc. Job Fairs: Recruiters from local and national set up tables and booths to collect resumes and discuss job opportunities Employment Agencies: Government ran agency that helps to find jobs for people. May charge a fee

Other ways to find a job Finding a job is a job in itself Visit or call specific company you have an interest in Check telephone directory for business names Talk to people you know who work in the field (network) Search Internet Finding a job is a job in itself

Applying for a Job Most important tool in landing a job is your resume Resume: 1-2 page summary of your education, training, experience, and qualifications. Provides perspective employers with an overview of the special contribution you may be able to make to their company Two Basic Resume Types: Chronological and Skills

Résumé's Chronological Resume: Outlines your education and work experience, and related information, year by year (or longer periods) Useful for job hunters who have continuous work experience Skills Resume: Highlights your skills and abilities in specific categories, such as communications supervision and research Useful for recent graduates or those changing careers Handout

More Job Searching Tips Along with a resume, a cover letter must be included Cover Letter: Personal letter that you present along with your resume Cover letter tells a potential employer why you are interesting in a job and why you think that it would be worthwhile to interview you See pg. 47 and 48

The Interview Formal meeting with your potential employer that allows you to express why you think you’re the best person for the job Do research first, know about the company Potential Questions: What education and training qualify you for this job? Why are you interested in working for this company? What are your major strengths? Weaknesses? Where do you see yourself 5-10 years from now? Most end saying when to expect to hear from them Ask questions of them Follow up with letter (see ex.)

Considering a Job Offer Consider factors before accepting a job offer Salary along with other financial benefits

The Work Environment Every workplace has its own unique style Will notice difference between managers from interview to interview, personality and way they handle employees Ex: Different Teachers Ask about policies: How do you handle pay increases? How do you measure employee quality? How do you go about promotions?

Factors Affecting Salary Beginning salary will depend on education, experience, company size, and average salary of the job you are considering Talk to people in the field to make sure you are getting fair salary Meet frequently with supervisor, asking for feedback and suggestions on improvement

Measuring Employee Benefits What benefits are offered to you besides paycheck? Base on needs of your family Cafeteria-style benefits program: Allows workers to choose benefits that best fit their needs Pension Plans: A retirement plan that is funded at least in part by your employer

Pension Plans Different Types: Fixed amount of money is given to you at retirement Profit-sharing, employer makes annual contribution to retirement fund each year. Money in fund builds up until you reach retirement age 401K, you set aside a portion of your salary from each paycheck to go into your 401K fund. Employer will often match a percentage of your contribution

Your Rights as an Employee Have certain legal rights as an employee and during the hiring process Can’t refuse to hire or terminate a woman because she is pregnant. Must be given full credit for previous service as well as credit for any retirement benefits and seniority she has accumulated Can’t discriminate based on age, race, color, religion, gender, marital status, or disability Must be given at least minimum wage, plus overtime if applicable Employer must pay for unemployment insurance, contribute to social security, and provide workers compensation funds in case of a work related injury or illness

Long-Term Career Development Skills to help assure that you are happy with your work in years to come: Improve communication skills, look for ways to get along with coworkers Develop good work habits, time-management skills Be aware problems may arise, and take action when they do Learn to anticipate problems

Training Opportunities Technology advances are continuously changing, jobs now exist that didn’t a few years ago Keep up with technology changes Attend seminars, read magazines in your field, talk with experts in your field

Career Paths and Advancement Personal interests, values, and goals with probably change with time See Figure 5 pg. 112 Way to stay on track is through a mentor program Mentor: Experienced employee who serves as a teacher and counselor for a less experienced person Can answer many of the questions you encounter

Changing Careers Most workers change jobs several times over the course of their lives Some go to new field, others to entirely new career To change jobs, sometimes minor adjustment is only needed other times start from scratch How will the financial and personal costs and benefits of changing careers affect your needs and goals

Signs that it’s time to move on You feel bored or depressed at work Your job affects you in a negative way physically or emotionally You receive a series of poor performance evaluations You have little opportunity to win a raise or promotion You have a poor relationship with your supervisor or coworkers