personal finance unit 1 chapter 2 © 2007 glencoe/mcgraw-hill · want. i know already that i want a...


What You’ll Learn

Section 2.1

• Identify the personal issues to consider when choosing and planning your career.

• Explain how education and training affect career advancement.

• Discuss the factors that influence employment.

Section 2.2

• Describe effective strategies to obtain employment.

• Identify sources of career opportunities.

• Identify the financial and legal issues to consider when looking for employment.

Chapter 2

Finances and Career Planning


Planning for Life

• Q: Career plans are for people who do not know what they

want. I know already that I want a high-paying job. So why

should I bother thinking about career planning?

• A: Money is just one motivation for work. You need to

consider many other factors as well. Career planning

considers your personal values, goals, and interests, the

basics for any career decision. Since you will probably spend

the majority of your life working, consider the old adage:

“Choose a career you love, and the money will follow.”

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Main Idea

Choosing and planning for the right career will

help you find fulfillment both personally and

financially. Why will choosing

the right career

help you find both

personal

satisfaction and

financial security?

Section 2.1

Planning Your Career



Choosing a Career

Some people find true satisfaction in their work,

while others work just to make money.

You can choose whether to:

Get a job just to earn money.

Prepare for a career.

Ensuring that your career will fulfill your

personal and financial goals requires planning.

job

work that you do

mainly to earn

money

career

a commitment to

work in a field that

you find

interesting and

fulfilling

Section 2.1



Career Decision Trade-Offs

Your choice of career will affect:

The amount of money you make

The people you meet

How much spare time you have

Section 2.1



standard of

living

a measure of

quality of life

based on the

amounts and

kinds of goods

and services a

person can buy

Section 2.1


Choosing a Career

People make career decisions based on whether they want to:

Simply maintain a standard of living

Pay for the hobbies and activities they enjoy

Pursue careers that provide them with both money and personal fulfillment

Select careers that reflect their interests, values, and goals


trends

developments

that mark

changes in a

particular area

Section 2.1


Opportunity Costs

Choosing a career will involve trade-offs, or opportunity costs.

Recent trends indicate that some people are making career decisions that allow them to:

Spend more time with their families

Enjoy their hobbies and interests

Run their own business

The more you know about your own interests,

values, needs, and goals, the better you will be

able to choose a career that will provide a

balance between personal satisfaction and

financial rewards.


Career Training and Skill Development

Acquiring more education will help you to:

Increase your potential earning power.

Meet your financial goals.

Increase your chances for success.

Your field of study will also affect your salary.

potential earning

power

the amount of

money you may

earn over time

Section 2.1



Checklist for Success

You will be an asset to any employer if you:

Work well with others

Strive to do your best

Are creative when solving problems

Communicate well

Understand yourself and other people

These basic qualities and skills make success

more likely in most job situations.

Section 2.1



Personal Factors

You can take special tests to learn more about your:

Abilities

Interests

Personal qualities

These tests—called aptitude tests and interest

inventories—may give you an edge in choosing

a career.

aptitudes

the natural

abilities that

people possess

interest

inventories

tests that help you

identify the

activities you

enjoy the most

Section 2.1



Stages of Career Planning

Before you make any decisions about your career, you should review your situation.

Your progress will depend on:

Your opportunity costs

The choices that are available to you

Your career area

Talking to people in your field of interest can

help you with your career planning.

Section 2.1



External Factors and Opportunities

Before you begin your job search, you should

take into consideration:

Social influences

Economic factors

Trends

These factors directly affect the job market and

the opportunities that are available to you.

Section 2.1



External Influences on Your Career

When you consider your career options, you

need to focus on:

Your skills

Your training

Your experience

Social influences

Economic conditions

Industry trends

You may have no control over the “big picture”

factors, but you can make some personal

decisions based on real-world influences.

Section 2.1



Social Influences

Demographic trends can affect your employment opportunities. Some examples of demographic trends that have affected the job market are:

More working parents

More leisure time

More elderly people in the overall population

Greater demand for ongoing employment training

demographic

trends

tendencies of

people grouped

by age, gender,

ethnicity,

education, or

income that

change over time

Section 2.1



Geographic Trends

Geographic location also influences earning level. In recent years, geographic trends have indicated that some of the fastest-growing job markets are in:

Florida

Nevada

Arizona

Arkansas

New Jersey

California

Remember to consider differences in earning levels and costs of living as you decide where to look for employment.

geographic

trends

tendencies of

people moving

from one area of

the country to

another as

financial centers

shift location

Section 2.1



Economic Factors

Since the job market changes as the economy does, the demand for certain types of jobs changes.

Some economic factors that can reduce career opportunities are:

High interest rates

Price increases

Decreased demand for certain goods and services

Being aware of current economic trends will help you to choose a career so that you can achieve your financial goals.

Section 2.1


18 Personal Finance Unit 1 Chapter 2 © 2007 Glencoe/McGraw-Hill 18 Personal Finance Unit 1 Chapter 2 © 2007 Glencoe/McGraw-Hill

Career Center At your school’s career center, you will find a variety of free

information that can help you with college choices, résumé

preparation, job opportunities, and career counseling.

How can researching different careers that interest you help your

financial planning for the future?


Trends in Industry and Technology

Changes in industry and technology also affect the job market.

While opportunities have dwindled in some areas of the economy, such as manufacturing, opportunities in other areas—such as service industries—have grown. Some examples of service industries include:

Computer or telecommunications technology

Health care

Social services

Hospitality services

Management

Education

Financial services

service

industries

businesses that

provide services

for a fee, offer

employment

potential in

coming years

Section 2.1



What are some

strategies you

think might be

effective in

obtaining

employment

experience?

Main Idea Learn effective strategies to help you get the job or

career that meets your personal and financial goals.

Section 2.2

Employment and Career Development



Employment Search Strategies

As you take steps to search for a job, your level

of success will depend upon:

How well you communicate the value of

the experience you already have

How effectively you use proven

employment strategies

Section 2.2



Obtaining Employment Experience

As you enter the world of work, you may worry

that you do not have enough experience.

You may be overlooking the importance of

various kinds of work-related training, including:

Part-time work

Volunteer work

Internships and cooperative education

Class projects or after-school activities

Section 2.2



Types of Work-Related Training

When you volunteer with places such as nonprofit

community organizations and government agencies,

you can:

Learn new skills

Develop good work habits

Make professional contacts

Working as a “temp” is a good way to gain experience

and learn more about a particular field.

Section 2.2



Internships and Cooperative Education

An internship may:

Give you the experience you need to

obtain employment

Lead to permanent employment

Allow you a chance to practice your

application and interviewing skills

Cooperative education programs are another

way to apply the workplace skills you learn in

class to an actual business environment.

internship

a position in which

a person receives

training by working

with people who

are experienced in

a particular field

cooperative

education

programs that

allow students to

enhance

classroom learning

with part-time work

related to their

majors and

interests

Section 2.2



Class Projects or After-School Activities

Class assignments and school activities can be

sources of work-related experience. They can

help you gain valuable career skills such as:

Managing, organizing, and coordinating

people

Public speaking

Goal setting, planning, and supervising

Financial planning and budgeting

Conducting research

Section 2.2



Career Information Sources

You need up-to-date information to make the

best career decisions. Many sources of

information are available to you, including:

Mass media

The Internet

School guidance offices

Community organizations

Professional organizations

Section 2.2



Contacts

Contacts are another good source of advice and

information as you prepare for a career. Your

contacts are your:

Family

Friends

Coworkers

Teachers

Professors

Former employers

Section 2.2



Networking

Even people whom you do not know can assist

you in a job search. That is why it is never too

late to begin networking.

Your contacts may:

Know someone who can hire you

Be able to arrange an informational

interview

networking

a way of making

and using contacts

to get job

information and

advice

informational

interview

a meeting with

someone who

works in your area

of interest who can

provide you with

practical

information about

the career or

company you are

considering

Section 2.2



Identifying Job Opportunities

If you are going to find employment that is right

for you, you need to know where to look for job

openings. Explore sources such as:

Job advertisements

Job fairs

Employment agencies

Section 2.2



Job Advertisements

All newspapers have classified ads that include

job listings; some list both local jobs and those

from a wide geographic area.

You can also use the Internet as a valuable

source for job opportunities. On the Internet, you

can:

Use a search engine to find a company’s

Web site and learn more about it

Find a company’s list of current job

openings

Use job-search Web sites with job

advertisements, advice, and résumé

services

Section 2.2



Job Fairs

At a job fair, recruiters from local and national

companies set up tables or booths where you

can:

Discuss job opportunities

Submit your résumé

To make the most of a job fair, be prepared to

make your best impression on several recruiters

in a short amount of time. They may call you in

for an in-depth interview at a later date.

Section 2.2



Employment Agencies

Employment agencies are businesses that

match job hunters with employers. The

employment agency fee may be paid by:

The company that hires you

You

You and your new employer

Do not get involved with agencies that ask you

to pay a fee without promising you a job in

return.

To find out more about employment agencies,

contact your state’s employment service or

department of labor.

Section 2.2



Other Ways to Find a Job

Your ability to find a job is limited only by your

imagination and energy. Other ways to find a job

include:

Visiting specific companies where you

would like to work

Calling local businesses in your field of

interest

Talking to people with similar interests

who have already graduated from your

school

Section 2.2



Applying for a Job

Making the best possible presentation of your

skills and experience is the key to landing a job.

Your résumé is your most important tool. The

two basic types of résumés are the:

Chronological résumé

Skills résumé

Your résumé provides prospective employers

with an overview of the special contribution you

may be able to make to their companies.

résumé

a one- or two-

page summary of

your education,

training,

experience, and

qualifications

Section 2.2



Cover Letters

You will want to include a cover letter with your

résumé when you send it to an employer by:

Regular mail

E-mail

Fax

The cover letter tells a potential employer why

you are interested in a particular job and why

you think that it would be worthwhile for him or

her to interview you.

cover letter

the personal letter

that you present

along with your

résumé

Section 2.2



Preparing for the Interview

If you are granted an interview, you should

obtain as much information as you can about

the company or industry before your interview.

Possible resources include:

The library

The Internet

Informal interviews with people who are

familiar with that company or industry

interview

a formal meeting

with your potential

employer that

allows you to

express why you

think you are the

best person for

the job

Section 2.2



The Interview

Here are some typical questions an employer might ask:

What education and training qualify you for this job?

Why are you interested in working for this company?

Other than past jobs, what experiences have helped prepare you for this job?

What are your major strengths? Major weaknesses?

After the interview, send your interviewer a note reiterating your interest and expressing your thanks for the opportunity to interview.

Section 2.2



Considering a Job Offer

Before you accept an offer, you have to

consider several factors. Find out all you can

about:

The company

The job itself

The working environment

The salary

Any other benefits

Section 2.2



The Work Environment

As you go on interviews, you will notice

differences in workplaces.

Ask about official company policies:

How does the company handle pay

increases?

How does it measure the quality of

employees’ work?

How does it decide which employees to

promote?

Section 2.2



Factors Affecting Salary

Your beginning salary will depend on:

Your education and experience

The size of the company

The average salary for the job you are

considering

To make sure that you are starting with a fair

salary, talk to people with similar jobs at other

companies or look for related information on the

Internet.

Section 2.2



Raises and Promotions

Raises and promotions are a direct result of how

well you do your job. Once you have accepted a

job offer and started to work:

Meet regularly with your supervisor

Ask for feedback on your performance

and any suggestions for improvement

Let your supervisor know that you are

interested in increased responsibility

Section 2.2



Measuring Employee Benefits

You should also evaluate the types of benefits

the company offers besides a paycheck and pay

particular attention to:

Health care

Retirement benefits

The specific needs of your family

Section 2.2



Meeting Employee Needs

Changes in society have brought about changes

in the types of benefits that employees receive.

Some of these changes include:

Cafeteria-style employee benefits

Social Security benefits

Pension plans

cafeteria-style

employee

benefits

programs that

allow workers to

choose the

benefits that best

meet their

personal needs

pension plan

a retirement plan

that is funded at

least in part by an

employer

Section 2.2



Comparing Benefits

You can compare the dollar value of employee

benefits in several ways. These ways include

finding:

The market value

Whether the benefits are tax-exempt or

tax-deferred

A 401(k) plan is an example of a tax-deferred

benefit.

Section 2.2



Your Rights as an Employee As an employee, you have certain legal rights; you also have certain legal rights during the hiring process:

An employer cannot refuse to hire a woman or terminate her employment because she is pregnant.

An employer cannot discriminate against a person for any reason related to age, race, color, religion, gender, marital status, national origin, or any mental or physical disabilities.

An employer must pay for unemployment insurance, contribute to Social Security, and provide for workers’ compensation funds in case of a work-related injury or illness.

Section 2.2



Long-Term Career Development A job is for today, but a career can last a lifetime. As you enter the world of work, ask yourself:

Will you always enjoy the work that you do today?

Will you be successful in the career you select?

You cannot predict the future, but you can develop skills and attitudes that will increase your chances of being satisfied with your work in years to come.

Section 2.2



Guidelines for Career Success

Here are some basic guidelines to follow for

career success:

Make a point of improving your

communication skills—both written and

oral.

Do your best to get along with your

coworkers.

Remain flexible and open to new ideas.

Develop good work habits.

Be creative in solving your own problems.

Be willing to learn new techniques and

technologies.

Section 2.2



Training Opportunities

A key to your ongoing success will be your

ability to keep up with changes in technology

and to adapt to the global economy.

Take advantage of your company’s:

Regular training programs

Professional seminars

Help with payment for college courses

You should also continue to read and learn as

much as you can on your own.

Section 2.2



Career Paths and Advancement

As time goes by, you will experience changes in

your personal interests, values, and goals.

Outside factors, such as economic conditions

and social trends, will also influence:

Your career choices

Other financial decisions that you make

You will probably go through a series of career

stages and experience specific tasks and

concerns with each one.

Section 2.2



Mentors

One way to make sure that your career

develops in the right direction is to gain support

from a mentor.

A mentor can:

Give you one-on-one training

Help you to meet other knowledgeable

people

Provide you with emotional support

during difficult times at work

Some of the best mentors are retired people

who are eager to share a lifetime of knowledge

and experience.

mentor

an experienced

employee who

serves as a

teacher and

counselor for a

less-experienced

person

Section 2.2



Changing Careers

Most workers change jobs several times over the course of their lives. The following are some signs that it may be time to move on:

You feel bored or depressed at work.

Your job adversely affects you physically or emotionally.

You receive a series of poor performance evaluations.

You have little opportunity to obtain a raise or promotion.

You have a poor relationship with your supervisor or coworkers.

Section 2.2



The Time Between Jobs

Being out of work can cause emotional and financial stress. While you are looking for a job:

Continue to eat, sleep, and exercise as usual.

Stay involved in family and community activities.

Improve your skills through personal study, classes, or volunteer work.

Think about opportunities with nonprofit or government organizations.

Whether looking for a new job or your first job, always consider how the financial and personal costs and benefits of your career choice will affect your needs and goals.

Section 2.2



Key Term Review job

career

standard of living

trends

potential earning power

aptitudes

interest inventories

demographic trends

geographic trends

service industries

Chapter 2


internship

cooperative education

networking

informational interview

résumé

cover letter

interview

cafeteria-style employee benefits

pension plan

mentor


Reviewing Key Concepts

1. List some of the personal issues you will need to consider

when planning your career.

Personal issues to consider when choosing a career include your:

Aptitudes

Interests

Personality

Current financial situation

Chapter 2




2. Describe factors that affect your potential earning power.

Your potential earning power will be influenced by:

Your level of education and training

The field of study you select

Chapter 2




3. Explain how current demographic trends might influence

your choice of career.

Chapter 2


Demographic trends can affect your employment opportunities

Some examples of demographic trends that have affected the job

market are:

More working parents

More leisure time

More elderly people in the overall population

Greater demand for ongoing employment training



4. List some ways you might obtain job-related experience.

You can gain experience through:

Part-time work

Volunteer work

Internships

Cooperative education

Class projects

Chapter 2




5. Identify sources of information to find out more about the career in which you are interested.

To evaluate career opportunities, use sources such as:

The Internet

Libraries

Newspapers

School guidance offices

Community organizations

Networking with people working in the field you choose

Chapter 2




6. Explain your rights as an employee.

An employer cannot refuse to hire a woman or terminate her employment because she is pregnant.

An employer cannot discriminate against a person for any reason related to age, race, color, religion, gender, marital status, national origin, or any mental or physical disabilities.

An employer must pay for unemployment insurance, contribute to Social Security, and provide for workers’ compensation funds in case of a work-related injury or illness.

Chapter 2


As an employee, you have certain legal rights; you also have

certain legal rights during the hiring process:


Newsclip: Career Edge

Students who develop strong job-search skills have a career

advantage. They develop clear career direction. They also

communicate and promote their competitive edge to employers.

Log On Go to finance07.glencoe.com and open Chapter 2.

Learn more about career strategies. Write a paragraph about how

you can boost your chances of getting hired.

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personal finance unit 1 chapter 2 © 2007 glencoe/mcgraw-hill · want. i know already that i want a...

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