Personal Finance: Chapter 2

Career

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

Tax-Exempt Benefit

Don't have to pay income tax

Aptitudes

Natural abilities that people possess

Basis of Career Opportunities

1: Social influences (demographic & geographic trends) 2: Economic conditions (interest rates, inflation, consumer demand) 3: Industry trends (foreign competition & changing uses of technology)

Informational Interview

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

Cover Letter

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

Resume

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

Job

An employment position obtained mainly to earn money, w/o 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

Market Value

Calculations that determine the specific monetary value of employee benefits (the cost of the benefits if you had to pay for them)

Future Value

Calculations that enable you to assess the long term worth of employee benefits (i.e. pension programs & retirement plans)

Cafeteria-Style Employee Benefits

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

Tax-Deferred Benefit

Requires the payment of income tax at some future time (i.e. at retirement)

Job Creation

The development of an employment position that matches your skills w/the needs of an organization

Vesting

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

Networking

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