Personal Finance
Chapter 2:
Career Planning
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Learning Objectives
1. Identify the key steps in successful
career planning
2. Analyze the financial and legal aspects
of employment
3. Practice effective employment search
strategies
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2.1 Developing your Career
Plan
Freddie Duarte is contemplating going to graduate school at
night for a master’s degree so he can advance his career and
earn more than his current $74,000 salary income. He is a sales
account manager for a health care organization, and on the side
he has a small business maintaining aquariums for medical and
other small offices. How much more income can Freddie expect
over an anticipated 40-year career if he obtains the advanced
degree?
A. $100,000 Personal Finance B. $200,000 3
2.1 Developing your Career Plan
Career planning can help you identify an employment
pathway that aligns your interests and abilities with the
tasks and responsibilities expected by employers.
Your focus should not be simply a job, which is a paid
position of regular employment, but a career. The
progression of a career will include a number of related jobs
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2.1 Developing your Career Plan
Career plan provides a strategic guide for one’s career
through short-, medium-, longer-, and long-term goals as
well as future education and work-related experiences.
A career that suits you well will give you opportunities to
display your abilities in jobs you find satisfying while
providing balance between work and your personal life
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2.1 Developing your Career Plan
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2.1 Developing your Career Plan
Values are the principles, standards, or qualities
considered worthwhile or desirable. They are personal
preferences, not right or wrong.
The kinds of values employers prefer in employees are
personal integrity, adaptability, dedication, dependable,
responsible, loyal, passionate, professional, selfconfident,
self-motivated, and willingness to learn.
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2.1 Developing your Career Plan
Professional interests are topics and activities related to
employment about which you have feelings of curiosity
or concern.
Interest inventories are measures that assist people in
assessing and profiling the interests and activities that
give them satisfaction.
Example: https://www.themyersbriggs.com/en-US/Products-and-Services/Strong
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2.1 Developing your Career Plan
Think about the following questions to help evaluate your
interests:
o What courses in college have you enjoyed the most?
o What projects did you enjoy the most?
o Are you a people person or do you prefer to be in the
background?
o What are your leisure time activities and hobbies?
o What activities do you that you enjoy the most
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2.1 Developing your Career Plan
Benefits and Costs: When making career choices, you
must weigh the benefits against the costs
o Benefits could include a big salary, likelihood of personal
growth and job advancements, and high job satisfaction.
o Costs might include living in a less-desirable geographic area
and climate, being far from old friends and family, sitting at a
desk all day, working long hours, and/or doing too much
traveling.
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2.1 Developing your Career Plan
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2.1 Developing your Career Plan
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2.1 Developing your Career Plan
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2.1 Developing your Career Plan
Bias Toward — Underestimating Income:
o People tend to underestimate the fair value of their labor in
the future. This suggests that people overvalue the pay of a
new job and undervalue the value of future economic
benefits.
o Consider staying at an employer for a longer time than usual
to enjoy the promotions and higher pay later on in life.
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Personal Finance
2.2. FINANCIAL AND LEGAL ASPECTS OF
EMPLOYMENT
Is College Worth the Cost?
o Education is more than an investment; it is a treasure
o College graduates can earn twice as much as those with a
high school diploma, and their unemployment rate is lower
than the high schoolers
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Personal Finance
2.2. FINANCIAL AND LEGAL ASPECTS OF
EMPLOYMENT
Employee Benefits are so important!
o Employee benefits (or nonsalary benefits) are forms of remuneration
provided by employers to employees that result in the employee not
having to pay out-of-pocket money for certain expenses.
o Examples include paid vacations, health care, paid sick leave, child care,
tuition reimbursement, and financial planning services
o To put monetary values on employee benefits, you may (1) place a market
value on the benefit or (2) calculate the future value of the benefit
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2.2. FINANCIAL AND LEGAL ASPECTS OF
EMPLOYMENT
Employee Benefits are so important!
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2.2. FINANCIAL AND LEGAL ASPECTS OF
EMPLOYMENT
Employee Benefits are so important!
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2.2. FINANCIAL AND LEGAL ASPECTS OF
EMPLOYMENT
Know Your Legal Employment Rights such as unemployment
insurance, health care insurance, workers’ compensation
benefits for job-related injuries or illness…
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2.2. FINANCIAL AND LEGAL ASPECTS OF
EMPLOYMENT
Assessing the Benefits of a Second Income:
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2.3. Practice EFFECTIVE EMPLOYMENT
SEARCH STRATEGIES
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