Personal Finance - Ch. 2 Career Planning

Steps of the Career Planning Process

1. Clarify your values and interests. 2. Identify one or more desired career fields. 3. Review your abilities, experiences, and education. 4. Take advantage of professional and social networking. 5. Align yourself with tomorrow's employment trends. 6. Finalize your career plan.

Indicate whether each of the following statements about employment law is true or false: 1. Employers are required by law to pay at least the minimum wage. 2. Employers are required to pay premium pay for weekend and holiday work. 3. Employers may not discriminate based on race, religion, or age. 4. Employers are required to pay social security taxes.

1. T 2. F 3. T 4. T

Equivalent Buying Power in City 1 =

= (Index in City 1 / Index in City 2) × Buying Power in City 2

Equivalent Salary in City 2 =

= (Index in City 2 / Index in City 1) × Salary in City 1

Employment Agency

A firm that finds potential candidates for a fee, sometimes called "head hunters".

The first step in career planning is to think about and identify your values and interests. Which of the following describes a value? a. A personal principle or standard b. A right versus wrong behavior c. Something that is true or false d. A need or want

A personal principle or standard

Resume

A summary document that presents your experience, education, and skills.

Interest Inventory

A survey that assesses career interests and activities.

Which of the following reflects a personal or professional interest rather than a value? Creative writing Financial security A desire to help others Religious commitment

Creative writing

work-style personality

How you respond to job requirements, surroundings, and associates?

City indices

These data provide a gauge for comparing salaries and costs for cities across the country. can be found on the Internet. Use them to compare salaries and costs across the country. A salary offer in a high index city should be higher than a salary offer in a low index city because it costs more to live in the high index city. If you are comparing offers from different parts of the country, you should adjust them using the indices in order to compare like values.

_____ are the principles, standards, or qualities considered worthwhile.

Values

Which of the following is an employer NOT legally required to provide to employees? a) a retirement plan b) unemployment insurance c) worker's compensation insurance d) unpaid leave for personal and family medical problems

a) a retirement plan

Which of the following is true regarding the costs versus the benefits of a college education? a. On average, college graduates earn twice as much per hour as high school graduates. b. Only 5 out of 10 graduates say their college expenses have been a good investment. c. The return on investment for a bachelor's degree is about 5% a year. d. All of these.

a. On average, college graduates earn twice as much per hour as high school graduates.

After you have adopted a career path, you should: a. Reevaluate it every couple of years. b. Persevere on that decided path no matter what. c. Change it every five years.

a. Reevaluate it every couple of years.

The second step in career planning is to identify one or more potential career fields. In this process, you'll want to lay out a career ladder, which is: a. The progression from entry-level positions to higher levels of pay, skill, responsibility, or authority. b. A list of pros and cons related to the career. c. A list of lifestyle trade-offs that you'll find necessary in the career. d. All of these.

a. The progression from entry-level positions to higher levels of pay, skill, responsibility, or authority.

University-, community-, and employer-sponsored opportunities for job seekers to meet with many potential employers over one or more days is called a _____

career fair

The progression from entry level positions to higher levels of pay, skill, responsibility, or authority is referred to as a(n) _____

career ladder

Which of the following reduce the additional income that might come from having a second income? a) the impact of your marginal tax rate b) additional spending on food c) additional spending on transportation d) All of these

d) All of these

Aligning yourself with tomorrow's employment trends will more likely result in a. Employment b. A good salary c. Career advancement opportunities d. All of the above

d. All of the above

Once you've started to identify a career field, the next step in the development of a career plan involves identifying and evaluating your abilities, experiences, and education. If these elements don't support the requirements of your chosen career field, you can: a. Get involved in activities that will develop the skills and aptitudes you need. b. Seek additional education and professional training. c. Seek an internship that will provide on-the-job experience. d. All of these activities will contribute to career satisfaction and success.

d. All of these activities will contribute to career satisfaction and success.

Which of the following statements is true regarding the importance of professional and social networking? a. Placing crude quotes and photos on your social page will attract desirable attention from potential employers. b. As many as 85% of all job openings may never be listed in want ads. c. Companies find 20% of new hires through referrals. d. Your contacts may be able to hire you or provide you with a reference or useful information about a potential employer.

d. Your contacts may be able to hire you or provide you with a reference or useful information about a potential employer.

Forms of remuneration provided by employers to employees that result in the employee not having to pay out-of-pocket money for certain expenses are called _____

employee benefits

skills résumé

focuses on qualities and aptitudes that apply to the open position.

A worker who chooses to be employed with a flexible work arrangement on a contract basis for a variety of employers is said to be _____

freelancing

If you are converting a salary from a low index city to a high index city, the salary would be _____ in the high index city. And if you are comparing a salary in a high index city to a low index city, you would expect your converted salary to be _____ in the low index city.

higher lower

chronological résume

presents a career history in reverse order with the most recent employment presented first.

functional résumé

presents career-related experiences and highlights achievements in any order.

A summary record of your education, training, experience and other qualifications is your _____

resume