2. Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2004. All Rights Reserved. 2-1 C HAPTER 2 Personal Finance Financial Aspects of Career Planning Kapoor Dlabay Hughes 7e

3. Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2004. All Rights Reserved. Financial and Personal Aspects of Career Choice Consider the trade-offs of career decisions.  Periodically evaluate the trade-offs related to personal, social and economic factors. Formal training affects financial success. There are competencies that successful commonly possess, such as willingness to cope with conflict and adapt to change. 2-2

4. Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2004. All Rights Reserved. How Education Relates to Income Two-year vocational degree Bachelor’s degree Master’s degree Professional or doctorate degree Estimated lifetime earnings (40 years) from Bureau of Labor Statistics $2 million $2.3 million 2-3 $2.8 million$1.5 million

5. Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2004. All Rights Reserved. Personal Factors Affecting Career Selection Aptitudes - What natural abilities, such as physical dexterity or working well in team settings do you possess? Interests inventories - Help you determine what gives you satisfaction. Your personality - How much structure do you like? Do you perform best in low-pressure or high-pressure working environments? 2-4

6. Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2004. All Rights Reserved. Stages of Career Planning and Advancement Assess and research personal goals, abilities, and career fields. Evaluate the employment market and identify specific employment opportunities. Develop a resume and cover letter. Apply. Interview. Assess your interview performance. Evaluate the positions you are offered. Plan and implement a program for career development. 2-5

7. Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2004. All Rights Reserved. Social Influences on Career Opportunities Demographic trends.  Increase in working parents increases demand for food service and child care.  More leisure time for some means more interest in health, fitness, and recreation products and services.  An increase in the number of older people raises demand for travel services, health care services, and retirement facilities.  Increased demand for further employment training creates opportunities for teachers and trainers. Geographic trends.  Where jobs are, salaries, and living costs. 2-6

8. Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2004. All Rights Reserved. Economic Conditions Affect Career Opportunities Career opportunities are reduced by…  High interest rates.  Price increases.  Decreased demand for goods and services. Some industries are affected by these more than others. 2-7

9. Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2004. All Rights Reserved. Trends in Industry and Technology Affect Career Opportunities Increased competition from companies in Asia, Europe, and other regions has reduced demand for American-made products. Automated production methods have decreased the need for many entry-level employees in factories. Some service industries are expected to have the greatest potential employment in the 21st century... 2-8

10. Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2004. All Rights Reserved. Service Industries Expected to Have the Greatest Employment Potential Include Computer technology. Health care. Business services. Social services. Sales and Retailing. Hospitality and food services. Management and human resources. Education. Financial services. 2-9

11. Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2004. All Rights Reserved. Employment Search Strategies Obtaining employment experience.  Part-time employment. - do you like the work?  Volunteer work - develop organizational skills.  Internships - experience helps obtain employment.  Campus projects - helps obtain career skills. Using career information sources.  Library materials.  Mass media career information.  World wide web.  Campus development office.  Professional associations and business contacts. 2-10

12. Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2004. All Rights Reserved. Identifying Job Opportunities Job advertisements. Career fairs. Employment agencies. Job creation. Visit companies. Telephone and business directories. Web search. Talk with alumni in your field. 2-11

13. Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2004. All Rights Reserved. Applying for Employment Resume. Cover letter. Interview See Chapter 2 Appendix for detailed help in these areas. 2-12

14. Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2004. All Rights Reserved. Financial and Legal Aspects of Employment Research the job and the company before accepting an employment position. The work environment.  Corporate culture.  Company policies and procedures. Factors affecting salary.  Education, training, company size, and comparable salaries.  Performance quality and work responsibilities. 2-13

15. Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2004. All Rights Reserved. Financial and Legal Aspects of Employment (continued ) Evaluating employee benefits.  Nonsalary expanded benefits may be available to meet the needs of employees’ life situations. These include such things as child care, leaves of absence, and elder care.  Cafeteria-style benefits allow workers benefit credits that they can choose to meet their needs.  Those with young children may choose more life and health insurance, while older persons may want to participate in profit-sharing plans and retirement programs. 2-14

16. Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2004. All Rights Reserved. Financial and Legal Aspects of Employment (continued) Evaluating employee benefits (continued)  Flexible spending and medical savings accounts allow you to set aside pretax dollars for health care costs.  Compare benefits of job offers based on market value (the cost of the benefits if you had to pay for them), or based on future value (long-term worth of benefits such as pension programs and retirement plans.  Know your employment rights regarding discrimination, minimum wage and overtime legislation, and worker’s compensation. 2-15

17. Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2004. All Rights Reserved. Long-Term Career Development Training opportunities. Career paths and advancement. Changing careers. 2-16

18. Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2004. All Rights Reserved. Stages of Career Development Pre-entry and career exploration. Establishment and professional growth. Advancement and mid-career adjustment. Late-career and pre-retirement stage. 2-17

19. Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2004. All Rights Reserved. Online Career Planning Career planning tips.  www.mapping-your-future.org Lists of available jobs.  www.careerpath.com, www.hotjobs.com and www.monster.com, and www.careermosaic.com. Resume preparation help.  www.monster.com and www.jobweb.com. Career planning articles.  www.money.com., www.kiplinger.com, businessweek.com. Employee benefit information.  www.ebri.org, www.benefitslink.com. 2-18

20. Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2004. All Rights Reserved. Elements of Developing a Resume Personal data section. Career objective section. Education section. Experience section. Related information section. References section. 2-19

21. Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2004. All Rights Reserved. Three Types of Resumes Chronological.  Most use this type. It focuses on your experience in reverse-time sequence. Functional.  If your skills are diverse this type focuses on your skills. Targeted.  Prepared for a specific job. E-resumes for applying for a job online.  Use a simple format and no attachments. 2-20

22. Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2004. All Rights Reserved. Creating a Cover Letter Introductory paragraph.  Get reader’s attention.  Overview your qualifications. Development paragraph.  Specific qualifications.  Refer to details on resume.  Experiences and training. Concluding paragraph.  Ask for interview.  Include how to contact you.  Summarize how you can help the company. 2-21

23. Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2004. All Rights Reserved. The Job Interview Prepare for the interview by getting information about your prospective employer.  Library resources such as annual reports or recent articles.  Internet searches of company and industry information.  Observations during company visits. Prepare questions to ask about your specific interests, the organization, policies, and benefits. Practice interview skills. 2-22

24. Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2004. All Rights Reserved. The Interview Process Dress appropriately.  Arrive about 10 minutes early.  The interview process.  A screening interview is an initial, brief contact to reduce the pool of candidates.  “E-interviews” - Some screening is done online.  The selection interview is for finalists, and may involve a series of activities. After the interview.  Express appreciation with a follow-up letter.  Self-evaluate your interview performance. 2-23

25. Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 2004. All Rights Reserved. The End