Chapter 2:Career Planning
Garman/Forgue
Personal FinanceNinth Edition
PPT slide program prepared by Amy Forgue and Ray Forgue.
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Learning Objectives
• Identify the key steps in successful financial planning.
• Clarify your work-style personality.
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Learning Objectives
• Analyze the financial and legal aspects of employment.
• Practice effective employment search strategies.
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Career Planning
• Career: Lifework chosen by a person to use personal talent, education, and training.
• Career Planning: Finding employment that will use your interests and abilities and that will support you financially.
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Key Steps in Career Planning
• Create your Career Goal and Career Plan.
• Clarify your interests
• Interest Inventories: Scaled surveys that assess career interests and activities.
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Key Steps in Career Planning
• Review your – Abilities (Professional abilities, Aptitudes)
– Experiences
– Education and professional training
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Key Steps in Career Planning
• Identify your values.
• Values: Principles, standards, or qualities, that you consider desirable.
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Key Steps in Career Planning
• Consider costs, benefits, and lifestyle trade-offs.
• Align yourself with tomorrow’s employment trends.
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Key Steps in Career Planning
• Take advantage of networking.
• Professional Networking: Making and using contacts with individuals, groups, and other firms to exchange career information.
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Key Steps in Career Planning
• Target preferred employers.
• Preferred Employer: Employers that would suit you best.
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Key Steps in Career Planning
• Be willing to change career goals and plans.
• Know your preferred work-style personality.
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Financial and Legal Aspects of Employment
• Compare salary and living costs in different cities.
• Compare using city indexes.
• City Indexes: Comparing wages and cost of living for various employment locations.
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Financial and Legal Aspects of Employment
• Place values on employee benefits.
• Nonsalary (or Employee) Benefits
• Place a market value on the benefit.
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Financial and Legal Aspects of Employment
• Place a market value on the benefit.
• Calculate the future value of the benefit.
• Know your legal employment rights.
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Effective Employment Search Strategies
• Assemble a resume.
• Resume– Chronological Format– Skills Format– Functional Format
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Effective Employment Search Strategies
• Identify job opportunities, such as:– Career Fairs
– Classified Advertisements
– Employment Agencies
– The Internet
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Effective Employment Search Strategies
• Write an effective cover letter.
• Cover Letter: Letter of introduction sent to a prospective employer to get an interview.
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Effective Employment Search Strategies
• Obtain strong reference letters.
• Apply!
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Effective Employment Search Strategies
• Interview for success.
• Job Interview: Formal meeting between employer and potential employee to discuss job qualifications and suitability.
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Interview for Success
• Do some research before the interview.
• Compile revealing personal stories.
• Prepare questions to ask the interviewer.
• Prepare responses for anticipated interview questions.
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Interview for Success
• Create positive responses to negative questions.
• Be ready for telephone interviews.
• After the interview, evaluate it and send a thank-you note
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Effective Employment Search Strategies
• Negotiate.
• Accept the job.
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Top 3 Financial Missteps in Career Planning
People slip up in building and maintaining good credit when they do the following:
1. Don’t learn as much as possible about a company before going for an
interview.
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Top 3 Financial Missteps in Career Planning
2. Change jobs and cash out employer-sponsored retirement savings plans, instead of leaving it there, transferring it to the new employer’s 401 (k) plan, or moving it to a rollover IRA account.
3. Fail to use the COBRA law to continue participating in the old employer’s medical health plan benefits for up to 18 months.
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Good Money Habits in Career Planning
• Take the time to plan and make the effort required to obtain employment in your career.
• Identify your career planning values and live them in your selection of jobs and your performance at work.
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Good Money Habits in Career Planning
• Do not miss an opportunity to continually enhance your education and professional training.
• Understand your preferred work-style personality
• Practice effective employment search strategies, especially interviewing skills.