Chapter 5 Careers and Education 2010 Pearson

Chapter 5 Careers and Education © 2010 Pearson Education, Inc. All rights reserved

Learning Objectives – Explain the process for deciding a career path – Describe different sources of information to research careers – Explain how one can gain the skills needed for career choice – Describe the process of applying for a job © 2010 Pearson Education, Inc. All rights reserved 0 -2

Determining a Career Path • Identify areas of interest to you • Make a list of things you enjoy doing • Identify careers that involve these activities and interest • Talk to your career counselor • Take a personality test • Take a look at Figure 5. 1 to see the fastest growing jobs from 2006 -2016 © 2010 Pearson Education, Inc. All rights reserved 0 -3

Figure 5. 1 © 2010 Pearson Education, Inc. All rights reserved 0 -4

Education and Skill Requirements • Consider the education and/or skills requirements for possible careers • Choosing a career requires a cost/benefit analysis • Do not focus solely on the financial costs • Consider how the extensive training will impact your quality of life • Take a look at Figure 5. 2 to see the relationship between years of education and earnings. © 2010 Pearson Education, Inc. All rights reserved 0 -5

Figure 5. 2 © 2010 Pearson Education, Inc. All rights reserved 0 -6

Math for Personal Finance • Jorn is considering getting a college degree. Assuming he graduates in four years and tuition, books, and fees cost about $6, 000 per year, how much will he spend to get his degree? © 2010 Pearson Education, Inc. All rights reserved 0 -7

Math for Personal Finance • Solution: Jorn will spend at least $24, 000 to get his degree or four years x $6, 000 per year. However, keep in mind that he will also incur incidental expenses such as meals, gasoline, and other supplies, that will increase his cost. If he borrows money, he will have to pay interest on the borrowed money. He will also incur opportunity costs in the form of lost wages. © 2010 Pearson Education, Inc. All rights reserved 0 -8

Job Availability • Factor in job availability for whatever career you want to pursue • Consider jobs you can do while you pursue your career • Research the job demand in the region you live in or would like to live. • Relocation for a job can be expensive © 2010 Pearson Education, Inc. All rights reserved 0 -9

Compensation • Compensation is how much money you make for your job • Research the compensation for any careers you are considering • You will need a minimum level of income in order to cover your expenses • A job that does not pay well may not allow you to cover expenses or increase your net worth © 2010 Pearson Education, Inc. All rights reserved 0 -10

Math for Personal Finance Financial Math Skills Problem 4 • Latrell is comparing two job opportunities. One job will pay $12 an hour and he will work 40 hours a week. The other one pays an annual salary of $22, 000 and he will work 45 hours a week. Which job pays more? © 2010 Pearson Education, Inc. All rights reserved 0 -11

Math for Personal Finance • Solution: The first job will pay an annual amount of $12 x 40 hours a week x 52 weeks a year = $24, 960. The second job pays $22, 000 a year and requires Latrell to work five extra hours per week. © 2010 Pearson Education, Inc. All rights reserved 0 -12

Compensation • Go to www. careerjorunal. com to find out how much certain professions make • Go to www. bls. gov to research the pay level of government jobs © 2010 Pearson Education, Inc. All rights reserved 0 -13

Check Your Financial IQ • What are the steps in developing a career? – 1 – 2 – 3 – 4 – 5 © 2010 Pearson Education, Inc. All rights reserved 0 -14

Check Your Financial IQ • Determining interests, finding related career choices, learning about education and skill requirements, job availability, and compensation. © 2010 Pearson Education, Inc. All rights reserved 0 -15

Sources of Career Information • The Internet is a great source of up-to-date career information • Websites can provide you with the following information: – Different career options – Possible compensation levels for these careers – Skill sets needed for careers in a number of fields – Lists of the most frequently available jobs © 2010 Pearson Education, Inc. All rights reserved 0 -16

Sources of Career Information • The following websites are great sources for this information: – www. careers. org – www. careerbuilder. com – www. bls. gov – www. idcis. intocareers. org/ © 2010 Pearson Education, Inc. All rights reserved 0 -17

Books on Careers • Books are another resource to identify career options • Many books list the necessary skills required to pursue certain careers • Make sure the information you get from a book is up-to-date because career information can change quickly © 2010 Pearson Education, Inc. All rights reserved 0 -18

Field Trips and Speakers • High School field trips can help you identify careers of interest • Class speakers can also provide valuable information on their careers • Use these opportunities to investigate various career options © 2010 Pearson Education, Inc. All rights reserved 0 -19

Job Experience • Part time jobs allow you to find out about working for a living • You can eliminate certain career options and identify possible career choices • It might show you what you do and do not like in a job © 2010 Pearson Education, Inc. All rights reserved 0 -20

Internships • An internship is a temporary, short-term position designed to provide exposure to and training in a particular job. • Paid or unpaid an internship helps you gain additional information about a certain career or job • Companies hire interns to perform various tasks around an office like delivering documents or printing material • Internships can be paid or unpaid © 2010 Pearson Education, Inc. All rights reserved 0 -21

Contacts • People you know can be great sources of information regarding careers • Visit someone’s parents’ or grandparents’ to learn first hand what they do for a living. © 2010 Pearson Education, Inc. All rights reserved 0 -22

Check Your Financial IQ • What are two ways to get career information? © 2010 Pearson Education, Inc. All rights reserved 0 -23

Check Your Financial IQ • Possible answers include online sources, books, and information from personal contacts. © 2010 Pearson Education, Inc. All rights reserved 0 -24

Getting the Skills You Need • Investigate the training and education you will need for your ideal job. • Take a look at Figure 5. 3 to see: – a list of various high-demand career choices – the education needed to get these jobs – the expected wages © 2010 Pearson Education, Inc. All rights reserved 0 -25

Figure 5. 3 © 2010 Pearson Education, Inc. All rights reserved 0 -26

Training Programs • An apprenticeship is another name for on-the-job training programs • Some careers require specialized training before entering the field • A certificate or license might be needed in order to pursue your career. • Some jobs give you the formal training while you work (apprenticeships) • Apprenticeships are common for skilled trades such as plumbing, electrical contracting, and welding. © 2010 Pearson Education, Inc. All rights reserved 0 -27

Training Programs • Certification is an official document or record stating that a person has met some standard for training or knowledge • Information on job training can be found on websites such as: – Career. One. Stop – The Bureau of Labor Statistics • Be careful about training information provided elsewhere on the Internet it can be misleading. • Some websites have authentic certification, but others may be just trying to take your money. © 2010 Pearson Education, Inc. All rights reserved 0 -28

Education • Accreditation is an official recognition that a school or program meets a certain standard • Colleges and universities provide training in the form of education leading to a degree • Research the types of majors and/or degrees you would like to pursue • Research the colleges that have these majors • Make sure it is an accredited school. © 2010 Pearson Education, Inc. All rights reserved 0 -29

Expanding Your Education • Graduate degrees provide you with additional knowledge and skills that should qualify you for a better job. • It can cost a lot of money to get a graduate degree • An advanced or graduate degree can enhance your employability even if it is not the same as your undergraduate degree © 2010 Pearson Education, Inc. All rights reserved 0 -30

Math for Personal Finance • Jilli s thinking about getting an MBA. She will give up making $38, 000 a year for the two years it takes to complete the MBA. She will also pay $35, 000 in total costs to get the degree. Assume she will make $75, 000 a year after she gets her MBA. How long will it take her to recover her investment? © 2010 Pearson Education, Inc. All rights reserved 0 -31

Math for Personal Finance • Solution: Jill will be investing a total of $38, 000 in lost annual wages x two years = $76, 000 plus the $35, 000 cost for a total of $111, 000. However, she will earn $37, 000 more per year after getting her MBA ($75, 000 - $38, 000 = $37, 000). Therefore, it will take her three years to recover her investment, or $111, 000/$37, 000 per year increase in salary = three years. © 2010 Pearson Education, Inc. All rights reserved 0 -32

Check Your Financial IQ • What are some of the ways people get training for different careers? © 2010 Pearson Education, Inc. All rights reserved 0 -33

Check Your Financial IQ • Many people get training from a training or apprentice program, or from a college or university, or even from on. © 2010 Pearson Education, Inc. All rights reserved 0 -34

Job Application Process • Most jobs require you to fill out a job application and resume. • Job applications provide your prospective employer with information about your previous work history. • Potential employers can also contact your previous employer to find out about your worth ethic • Take a look at Figure 5. 4 a and b for a sample job application © 2010 Pearson Education, Inc. All rights reserved 0 -35

Figure 5. 4 a © 2010 Pearson Education, Inc. All rights reserved 0 -36

Figure 5. 4 b © 2010 Pearson Education, Inc. All rights reserved 0 -37

Resume • Resume is a document that gives prospective employers a snapshot of your qualifications. • Your resume includes your personal background information, including education and previous work history. • Provide a list of any skills you have such as computer training and specialized skills • Different types of resumes emphasize the strength of your background. If you don’t have much work experience but skills you would want to emphasize those skills • The internet is a good resource for how to structure an effective resume • Look at Figure 5. 5 for a sample resume © 2010 Pearson Education, Inc. All rights reserved 0 -38

Figure 5. 5 © 2010 Pearson Education, Inc. All rights reserved 0 -39

Cover Letter • The more education and training you get, the more information required during a job application • A cover letter is sometimes submitted with a resume • Cover letters include more information and are like an introduction to the potential employer • A cover letter is usually the first chance to point out your strengths and persuades the would-be employer that you should be interviewed. • Take a look at Figure 5. 6 for an example of a cover letter © 2010 Pearson Education, Inc. All rights reserved 0 -40

Figure 5. 6 © 2010 Pearson Education, Inc. All rights reserved 0 -41

Job Searching • Many people post resumes online using websites such as Monster. Trak • Learn and become familiar with the process • People change their jobs and careers more often today © 2010 Pearson Education, Inc. All rights reserved 0 -42

Check Your Financial IQ • What are two ways to apply for a job? © 2010 Pearson Education, Inc. All rights reserved 0 -43

Check Your Financial IQ • You can use paper applications and resumes or apply using online services © 2010 Pearson Education, Inc. All rights reserved 0 -44

Summary • Important things to remember when deciding what career to pursue: – Review the education/skills needed – Research the job availability – Research what kind of compensation the job has © 2010 Pearson Education, Inc. All rights reserved • There are several sources available to you to research these kinds of things, such as: – – People Job experience The internet Personality test 0 -45

Summary • Additional training or education may be required for your career choice or to move to a different career • The benefits of this will increase, but so will the costs. • Applying for a job may involve all or some of the following: – – Filling out applications Writing and posting a resume Writing and posting a cover letter Using online services © 2010 Pearson Education, Inc. All rights reserved 0 -46

Key Terms and Vocabulary • Accreditation • Apprenticeship • Certification © 2010 Pearson Education, Inc. All rights reserved • Compensation • Internship • Resume 0 -47

Websites • • www. careerclusters. org www. bls. gov/oco/home. htm www. careerjournal. com www. careers. org www. careerbuilder. com www. acinet. org www. collegeboard. com www. Monster. Trak. com © 2010 Pearson Education, Inc. All rights reserved 0 -48