©2013 cengage learning. all rights reserved. personal finance career planning 1.1 1.1 your income...

©2013 Cengage Learning. All Rights Reserved.

Personal Finance

Career Planning1.1 Your Income and Your Career1.2 Finding and Applying for Jobs1.3 Interviewing and Pre-employment Testing

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Personal Finance

©2013 Cengage Learning. All Rights Reserved.CHAPTER 1

1.1 Your Income and Your Career

FACT OR FICTIONWhat do you think? Are the following statements true or false? If you think they are false, then say what is true?1. Most Americans work at jobs that pay them a wage or a salary.2. When you leave school and begin working in your chosen career, you will take on

a new identity.3. Your first step in choosing a career is to do some daydreaming. 4. Career planning is not important, because most adult Americans will fall into their

line of work by chance or by accident. 5. Newspaper classified ads are generally the best source of job leads.6. Contacting employers directly can uncover jobs that you might not find through

other sources. 7. Most businesses advertise their best jobs.


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1.1 Your Income and Your Career

FOCUS QUESTIONS● What are two ways of learning about financial

aid for students?● What is the most important lesson to learn

about handling personal finances?● How will your work affect your family and your

choice of friends?CHAPTER 1


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Sources of Income● You must put money in before you can take it

out● Wages, salaries, tips, and commissions● Entrepreneurship, or business earnings● Investment earnings● Government payments● Grants, royalties, and inheritances


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Sources and Income● Wages, Salaries, Tips, and Commissions

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● Wages – pay that is figured at an hourly rate● Salary – pay that is a fixed amount, regardless of the

hours worked● Tip – a voluntary payment that a customers makes

to an employee, often based on the quality of service provided

● Commission – a percentage of the total sale, paid to an employee instead of, or in addition to, salary or wages


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Sources of Income

● Entrepreneur – someone who organizes, manages, and assumes the risks of owning a business

● Sole proprietorship – a business owned by one person

● Partnership – a business with co-owners, in which both parties are legally joined together

● Corporation – a business owned by a group of stockholders

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● Entrepreneurship, or Business Earnings


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Sources of Income

● Investing – committing money to an enterprise in order to earn a financial return

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● Investment Earnings


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Sources of Income

● Financial aid for students● Social Security ● Medicare● Medicaid● Unemployment benefits● Aid to dependent children

● Government Payments


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Sources of Income

● Grants – payments or property given to people or institutions, which do not have to be paid back

● Royalties – a percentage of the sales in dollars paid to an author, songwriter, or inventor when copies of his or her creation are sold

● Inheritance – an amount of money, property, or an object of value, given by someone who had died

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● Grants, Royalties, and Inheritances


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Your Work and Your Identity● Money earned pays necessities of life: food and

water, housing, safety, clothing, health care, and education

● During school years your identity is a student● When you begin working, you will get a new

identity ● Ex. “This is Polly Baxter. Polly’s an engineer.”● Many work for 30-40 years. ● Very few never enter job market.

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Choosing Your Career● Most Americans did not choose their career but “fell” into their line of work by

chance or by accident. ● Steps to choosing your career

1. Daydream. Visualize your life in the future. What activities and relationships would be most satisfying? What kind of a lifestyle do you want as and adult?

2. Make a thorough self-assessment. Evaluate your values, interests, skills, aptitudes, and personality characteristics.

3. Gather career information. Look over the definitions of the sixteen clusters that were developed by the U.S. Department of Education and are available online with the Career Clusters Initiative.

4. Set a realistic career goal. You will need to match your unique set of needs and traits with the requirements and rewards of a career.

5. Make a decision. After comparing your own characteristics with the requirements and rewards of various careers, you will choose your career – the work that will affect nearly everything you do.

6. Outline a plan of action. A plan of action – is a list of the stpe s you will take to reach your career goal. It includes specific subgoals that chart the way to your chosen career.


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1.1 Assessment

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FACTUAL RECALLDetermine the best answer for each of the following 1. Name five common sources of income for Americans.2. In what occupation do workers typically receive commission?3. Name two sources of information about financial aid for college.4. Name three types of investments.5. List the six steps for choosing a career.

THINK CRITICALLYAnswer the following questions as completely as possible.6. Why is it important to earn money before spending it?7. What is the risk of using loans and credit cards to buy whatever you want?8. Salaried jobs do not pay overtime. Does someone earning an hourly wage

make more money than someone earning a salary? Why or why not?


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1.2 Finding and Applying for JobsFOCUS QUESTIONS● What are the best sources of job leads?● What are three traditional sources of job leads?● What are three online job sites?● What information is usually asked for on an application

form?● What legal document is required before you can be

employed?● How can keywords help you get a job interview?


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Obtaining Job Leads● Job leads – information about possible job

openings


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Obtaining Job Leads● Networking – the process of building professional

relationships that will assist both parties in reaching their goals● Build networks with professional friends and friends

of friends● Student network – family, friends, neighbors,

counselor, teachers, coaches, former employers, and business and professional people you know

● 80% of jobs found by networking● Many of the best jobs are never advertised because

businesses fill them with friends of company employees.


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Obtaining Job Leads● Professional and Trade Organizations

● All career fields have one or more professional organizations.

● Job/Career Fairs● Held regularly in cities and communities● Business send one or two employees to talk to

young people about jobs within their company● Meet people and make them part of your network

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Obtaining Job Leads● Traditional sources of Job Leads

● Newspaper ads. Some employers still use classified newspaper ads as their main source of recruiting job applicants.

● Employment agencies. (companies and institutions that help people find jobs or that find people to fill jobs) Employment agencies match workers with jobs. Most cities have a tax-supported public employment agency whose services are free. Private employment agencies also provide assistance in finding jobs, but the job seeker usually has to pay a fee. In some cases, however, the employer will pay the fees.

● Cold contact/direct mail. Contacting employers directly when you don’t know whether a job even exists may sound like a waste of time, but it sometimes uncovers jobs that you won’t find through other sources. Contact the director of human resources of the personnel manager.


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Obtaining Job Leads● Searching the Internet

● Portal site – a Web site that serves as an entrance to other related sites on the Internet

● Corporate Career Centers● Online Job Sites – ask for personal information online and

these sites have the right to share information with others (BE CAREFUL!)• CareerOneStop (http://fin.emcp.net/onestop) • USAJOBS (http://fin.emcp.net/usajobs)• The Riley Guide (http://fin.emcp.net/riley) • Job-Hunt (http://fin.emcp.net/jobhunt) • Monster.com, CareerBuilder.com, Hotjobs.com, Craigslist.org,

Indeed.com, SimplyHired.com

http://fin.emcp.net/onestop

http://fin.emcp.net/usajobs

http://fin.emcp.net/riley

http://fin.emcp.net/jobhunt


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Obtaining Job Leads● Organizing Your Job Search

● When you hear about a job opening write the following information down- Name of the person to whom you should apply - Company’s name, address, and telephone number- Source of your lead- Date you call to request an interview- Time and date of the interview- Name of person you are to see- Directions to the company’s office- Follow up each lead as quickly as possible


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Applying for a Job● Job Application Forms

● Application form – a questionnaire that helps an employer determine whether or not an applicant is qualified for a job and should come in for an interview

● Personal data sheet – a detailed list of personal information, which you bring to a job interview, that makes filling out the application easier


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Figure 1.3 Sample Job Application Form


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Figure 1.4 Personal Date Sheet InformationCreate a durable, easy-to-carry card or sheet with the following pieces of information about you. You will then have all the information you need to fill out application forms.

• Your whole name • Work History (name of business, address, telephone number, supervisor’s name, start and end dates for employment, job title, brief description of job duties, starting and ending salary, reason for leaving). Have this information available from all of your past jobs, beginning with the most recent and working backwards.

• Local (current) address

• Permanent address

• Telephone number

• Alternate telephone number (cell phone, work number)

• Special Skills (typing speed, foreign languages, computer programs)

• Emergency contact information (name, address, telephone number

• Honors and Awards

• Education History (name of school, address, years attended, degree or certificate earned, year it was awarded, major and minor concentrations)

• References (name, address, telephone number, relationship to you). Always get permission form the person before you list him or her as a reference. Usually, employers will ask for three references, and often they specify that the person may not be a relative and you must have known the person for at least a year.


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Applying for a Job● Social Security Cards

● Need a social security to work● Work Permit

● Work permit – an official document that verifies an employee’s age and usually outlines the duties that he or she is allowed to perform

● Ages 16 or 18


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Applying for a Job● Your Résumé

● Résumé – (pronounced REZ-oo-MAY) a summary of a job applicant’s personal information, education, skills, work experience, and special interests

● A well-prepared, polished résumé can give you an advantage over other appicants.


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Applying for a Job● In most cases, your résumé should include the following information in separate

sections:● Job title: State the name of the job or position for which you are applying. If you use the

same basic résumé for different jobs, then you can change the job title accordingly.● Contact Information: State your name, address, phone numbers, and e-mail address. ● Education: List the schools you have attended and the courses you have completed that

will help you perform this particular job. List and certificated, college degrees, and honors.

● Special Skills: List and skills you have developed that show you are especially qualified for this job.

● Experience: List all of the jobs you have had, including volunteer jobs, and briefly describe your duties for each job.

● School activities and awards: List any that relate to the job for which you are applying● References: List several people who will give you good recommendations. Don’t list

your school friends. List professional people, teachers, or your school counselor. If you prefer, simply state that references are available on request. In any case, ask for permission before providing names of references.


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Applying for a Job● Electronic Résumés

● Sent via e-mail usually using a word processor● Prepare you document so it will be easy to read

and transmit● Save as text-only-file● DO NOT use any bold type, underlining, or italics● Use a traditional font such as Times New Roman,

and 12-point font


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Applying for a Job● Keywords

● Companies that accept electronic résumés use a computer program rather than a real person to scan résumés

● Keywords – the words and phrases in a résumé that a computer program will search for to determine whether an applicant is qualified for a job

● Good keywords include words such as managed, supervised, analyzed, repaired, planned, and constructed.

● Experienced job hunters place a grouping of keywords in a “Summary of Qualifications” section near the top of the résumé.

● Use keywords in the job description● Electronic Résumé Banks

● Large number of résumés are stored and available to employers who wish to review the qualifications of job applicants

● Known as the “computer dating agencies”


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Applying for a Job● Problems in Providing Personal Information

● Be careful how much and what kind of personal information you provide

● If you are currently employed, you may not want your current employer to know you are looking for a job

● Do not want identity stolen ● Do not use a website that does not post a privacy

policy● Before posting a résumé make sure you will be able

to delete it later


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Applying for a Job● Cover Letters – a short letter to accompany a résumé, introducing the applicant

to an employer and explaining why the applicant would do a good job for the company

● You should always include on with a printed résumé● Prepare a custom cover letter for each different employer● Address the letter to a specific person along with their title● Letter should speak the needs of the company and how you can help fulfill those

needs.● Do research on the company and include what you learned about it on the cover letter● Get to the point

-Introduce yourself in the first paragraph and give the title of the job for which you are applying.-Next paragraph state your interests and qualifications and why you think you can do and especially good job for this company-Closing paragraph take initiative by stating you will call next week and arrange a time when you can meet to discuss position.

● DO NOT misspell any words and for sure do not misspell company name or person whom you are addressing the letter to


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1.2 Assessment

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FACTUAL RECALLDetermine the best answer for each of the following 1. What is the best source of job leads for most people?2. Why is it necessary to have a Social Security number before you apply for a job?3. How can you know which keywords are important to include in an electronic résumé.4. If you have prepared a good résumé, is there still a need for a cover letter? Why or

Why not?5. Why should you check you résumé and cover letter for errors?

THINK CRITICALLYAnswer the following questions as completely as possible.6. How should you prepare for a job fair?


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1.3 Interviewing and Pre-employment Testing

FOCUS QUESTIONS● In what setting do employers usually make

hiring decisions?● What are three things you should do to get

ready for a job interview?● What are six things you can do to make a good

impression in an interview?


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Making a Good Impression● Interview – a formal meeting between an employer and a job applicant● Here are some practical suggestions form making a good impression at a job interview:

● Go alone. Some young people take along a friend for support, but this is unprofessional and always makes a bad impression on employers.

● Smile and make eye contact. When you meet the person who will interview you, smile and look the person in the eye.

● Answer questions thoughtfully. Give yourself time to compose thoughtful answers. Speak with confidence and enthusiasm and use standard English. It is called standard English because it is consistent, and it is understood by all English speakers.

● Handle illegal questions intelligently. An employer’s questions must be related to the job you are seeking. In the United States, it is illegal to deny employment solely on the basis of a person’s age, color, disability, gender, sexual orientation, national origin, race, religion, or creed. If you are asked an illegal question, you will have to decide whether or not to answer. You may answer such a question if you wish. However, if you give the “wrong” answer, you might be harming your chances of being hired.

● Ask good questions. Usually you will be invited to ask some questions. Use your first question or two to show a sincere interest in the company and the job. Money may or may not be discussed by the interviewer. If not, it is all right to ask how much the job pays – but wait until near the end of the interview.

● When it’s over, go! Try to sense when the interview is almost over. Most interviewers will say something like, “Well, I believe I have all the information I need.” don’t linger, and be sure to thank the interviewer for his or her time before you leave.

● Write a thank-you letter. Write a letter thanking the interviewer for his or her time and saying how interested you are in the job.


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Pre- employment Testing● To ease the problem of hiring employees who

don’t work out, more and more companies have turned to pre-employment testing to screen out applicants who are not suitable for particular jobs.

● Measure aptitude, skills, and honesty.● Psychological tests, personality tests, medical

tests, and drug tests are also used.


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Checking Your Credit Score● Credit score – a number based on information in a credit report,

indicating the person’s credit risk● Employers can use this score for pre-employment● The credit report information comes from you credit accounts

and loans, late payments, bankruptcies, and recent inquiries. ● Usually use FICO scores● Credit scores range from 300 – 850● Average credit score is 680● Measures responsibility● Students and young workers do not have a long credit history● So it is all the more important for you credit record to be squeaky

clean


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1.3 Assessment

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FACTUAL RECALLDetermine the best answer for each of the following 1. What is the purpose of completing a job application form or sending a résumé and a

cover letter?2. Name three things you should do to prepare for a job interview?3. How can a good credit score help you obtain the job you want?4. At what point during a job interview should you ask how much the job pays?5. What should you do after a job interview?

THINK CRITICALLYAnswer the following questions as completely as possible.6. Being late for a job interview makes a bad impression. How can you avoid being late?7. During a job interview, you are asked about your religion. What are some ways you

could respond?

©2013 cengage learning. all rights reserved. personal finance career planning 1.1 1.1 your income...

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