Chapter 2: Financial Aspects of Career Planning

What skills would be of value in most employment situations?

1). Technical skills-specialized career training refers to technical skills for a specific profession. This training includes competencies in fields such as information technology, accounting, law, engineering, health care, education, real estate, insurance, and law enforcement. 2). General skills-requires experience in work or organizational settings. For example: an ability to work well with others in a variety of settings, taking initiative to overcome obstacles and meet challenges, and an interest in reading and continuing learning.

Career

A commitment to a profession that requires continued training and offers a clear path for occupational growth.

Informational interview

A company visit or meeting at which one gathers information about a career or an organization.

How does a job differ from a career?

A job is an employment position obtained mainly to earn money, without regard for interests or opportunities for advancement. A career is a commitment to a profession that requires continued training and offers a clear path for occupational growth.

Cover letter

A letter that accompanies a résumé and is designed to express interest in a job and obtain an interview.

Résumé

A summary of a person's education, training, experience, and other job qualifications.

Job

An employment position obtained mainly to earn money, without regard for interests or opportunities for advancement.

Mentor

An experienced employee who serves as a teacher and counselor for a less experienced person in a career field.

What opportunity costs are associated with career decisions?

Career choice and professional development alternatives have risks and opportunity costs. For example: some people select employment that is challenging and offers strong personal satisfaction rather than employment in which they can make the most money.

What types of activities would you recommend for people who desire career advancement and professional growth?

Communicating and working well with others will enhance your chances for financial advancement and promotion. Flexibility and openness to new ideas will expand your abilities, knowledge, and career potential. Develop efficient work habits. Use lists, goal setting, and time management techniques. Combine increased productivity with quality. All of your work activities should reflect your best performance. Finally, learn to anticipate problems and areas for action. Creativity and a willingness to assist others can help the entire organization and contribute to your work enjoyment and career growth.

What are some demographic and economic factors that affect career opportunities?

Demographic factors-continuing growth in the number of single and working parents expands the demand for food service and child care and as people live longer, the demand for travel services, health care, and retirement facilities increases.

What factors should a person consider before changing jobs or career fields?

First, carefully assess the financial and personal costs and benefits of changing careers in relation to your needs and goals and those of your household. Then determine whether a career change will serve your needs and goals and those of other household members.

How does technology affect available employment positions?

Future business demands will include expanded reading and communication skills. More and more employees are being required to read scientific and technical journals and financial reports and to write speeches and journal articles. Your career success is likely to depend on communication skills, computer skills, and the ability to communicate in more than one language.

Tax exempt benefits

Is one on which you won't have to pay income tax. (Social Security, tax returns, veteran's benefits)

Vesting

Is the point at which retirement payments made by the organization on your behalf belong to you even if you no longer work for the organization. It refers only to the employer's pension contributions.

How does a person's life situation determine the importance of certain employee benefits?

It depends on the person current life situation. The increasing number of two-income and single-parent households has resulted in a greater need for child care benefits and leaves of absence. The need for elder care benefits for employees with dependent parents or grandparents has also increased. Other includes: flexible work schedules, work-at-home arrangements (telecommuting), legal assistance, counseling for health, emotional, and financial needs, and exercise and fitness programs. Another benefit is the Cafeteria-style employee benefits where it allow workers to base their job benefits on a credit system and personal needs. For example: a married employee with children may opt for increased life and health insurance, while a single parent may use benefit credits for child care services.

Aptitudes

Natural abilities such as problem solving skills, numbers, etc.

Cafeteria-style employee benefits

Programs that allow workers to base their job benefits on a credit system and personal needs.

Corporate culture

Refers to management styles, work intensity, dress codes, and social interactions within an organization.

Tax deferred benefits

Requires the payment of income tax at some future time, such as retirement, investments, annuities.

Competencies

Such as information technology, accounting, law, engineering, health care, education, real estate, insurance, and law enforcement.

What types of career information sources can be helpful in identifying job opportunities?

The Occupational Outlook Handbook covers all aspects of career planning and provides detailed information on various career clusters. Most newspapers offer articles and columns about job searches and career trends. News sources also report on economic and social influences on careers. The Career Development Office can assist you in creating résumé and preparing for an interview. Networking can also be used to obtain and update career information.

Job creation

The development of an employment position that matches your skills with the needs of an organization.

Networking

The process of making and using contacts for obtaining and updating career information.

How does the information in a cover letter differ from the information in a résumé?

The résumé, a summary of education, training, experience, and qualifications, provides prospective employers with an overview of your potential contributions to an organization. A cover letter is the correspondence you send with a résumé to communicate your interest in a job and to obtain an interview.

What methods can be used to measure the monetary value of employee benefits?

This formula is used to calculate the tax-equivalent value of a no taxable benefit: Value of the benefit/(1—Tax rate) A variation of this formula, which would give the after-tax value of an employee benefit, is Taxable value of the benefit (1—Tax rate)

How can a person obtain employment-related experiences without working in a job situation?

You can obtain employment-related experience through work-related training such as a part-time employment, volunteer work, internships, and campus projects.