Chapter 2 Review

Chapter 2 Review

Finances and Career Planning

Multiple Choice

What does the term "standard of living" mean?

• The amount of wealth a person has obtained.

• A measure of quality of life based upon the goods and services you can buy.

• The amount of money you may earn over time.

Jobs, Careers, and Trade-offs

• A job is work that you do for money; a career is a long-term commitment to work in a field that you find interesting and fulfilling.

• You should choose a career that allows you to live up to your preferred standard of living.

Multiple Select

What are some things that can affect the standard of living? Select all that apply.

• Price of goods and services

• Imported goods

• Changes in fashion trends

• Distance learning

Personal Factors

• Aptitudes are the natural abilities that people possess.

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• Interest inventories are tests that help you identify the activities you enjoy the most.

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• The goal is to find a career that gives you the right balance between financial rewards and personal satisfaction.

Multiple Choice

Who has the highest potential earning power?

• A high school graduate

• A college graduate with a bachelor's degree

• A doctoral student

Career Training

• Potential earning power is the amount of money you may earn over time.

• Besides education, improving on your soft skills can lead to more career success.

• Hard skills are teachable abilities or skills, like learning a new language or computer program; Soft skills are personal attributes that allow someone to interact effectively and harmoniously with others, like good communication and patience.

Stages of Career Planning

• Stage 1: Assess personal goals, abilities, and interests. Research careers.

• Stage 2: Identify job opportunities in chosen field.

• Stage 3: Develop a résumé and cover letter. Apply for jobs.

• Stage 4: Interview for available positions. Improve interviewing skills.

• Stage 5: Consider job offers. Accept a job that meets financial and personal requirements.

• Stage 6: Plan and implement a program for career development.

External Factors

• Demographic trends are tendencies of people grouped by age, gender, ethnicity, education, or income that change over time.

• Geographic trends are tendencies of people moving from one area of the county to another as financial centers shift location.

• Economic factors such as high interest rates, price increases, or decreased demand for certain goods and services can reduce career opportunities.

Multiple Select

Which of the following can be considered a demographic trend? Select all that apply.

• People over 65 working longer before retiring.

• Change in agricultural watering processes in the Midwest.

• Increase in overtime hours worked by single parents.

• Boom in computer sales in Latino communities.

Trends in Technology and Service Industries

• Changes in industry and technology also affect the job market.  One must accept some financial uncertainty if working in a field where constant technological advances quickly outdate products and jobs.

• ​Service industries are businesses that provide services for a fee. There are numerous careers in these industries.

Multiple Choice

What is NOT an example of a career in a service industry?

• Restaurant owner

• ICU nurse

• Car manufacturer

• High school teacher

Multiple Select

What are ways in which you can gain work-related experience? Select all that apply.

• Having a seasonal job at CVS.

• Relaxing at the beach.

• Being part of the debate team at school.

• Helping a parent collect food for a charity.

Obtaining Employment Experience

• Part-time work

• Volunteer work

• Internships and cooperative education

• Class projects or after-school activities

Career Information Sources

• Sources for career information includes libraries, newspapers, community organizations, school guidance and career offices, and professional organizations.

• The Internet also has a wealth of information about jobs and employment. 

• Networking is a way of making and using contacts to get job information and advice. 

• An informational interview is a meeting with someone who works in your area of interest who can provide you with practical information about the career or company you are considering.

Applying for a Job

• Chronological Résumé - provides a year-by-year outline of your education, work experience, and related information.

• Skills Résumé - highlights your skills and abilities in specific categories, such a communications, supervision, or research.

• A cover letter is the personal letter that you present along with your résumé.

• The interview is a formal meeting with a potential employer.

Multiple Select

What are some ways to find job opportunities? Select all that apply.

• Employment Agencies

• Job Fairs

• The Internet

• Networking

• Visiting or calling a company

Considering a Job Offer

• ​Salary

• ​Work Environment

• ​Benefits

Employee Benefits

• Cafeteria-style employee benefits are programs that allow workers to choose the the benefits that best meet their personal needs. 

• A pension plan may provide you with a fixed amount of money at retirement. 

• If a business uses a profit-sharing plan, it makes an annual contribution to a retirement fund each year until you retire. 

• With a 401(k) plan, you set aside a portion of your salary from each paycheck to go into your 401(k) fund. Your employer may match a percentage of your contribution.

Comparing Benefits

• A tax-exempt benefit is a benefit that is not taxable.​

• A tax-deferred benefit is a benefit for which you will have to pay income tax sometime in the future, most likely after you retire.​

• The market value of a benefit is what the benefit would cost if you had to pay for it yourself. 

Multiple Choice

Company Neon:

Salary - $40,000/year

One week paid vacation

Fifteen paid sick days

Health insurance with a market value of $5,000

What is the dollar value of the benefits offered at Company Neon?

• $57,308.23

• $47,308.55

• $48,076.92

Solution

Weekly Salary = $40,000/52 = $769.23

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​Dollar Value of Benefits = $40,000 + 1($769.23) + 3($769.23) + $5,000

​Dollar Value of Benefits = $48,076.92

Multiple Select

An employer cannot discriminate against you based on your:

(Select all that apply)

• Age

• Gender

• Qualifications

• Religion

• Pregnancy

Your Rights

• An employer cannot refuse to hire a woman or terminate her employment because she is pregnant.

• An employer cannot discriminate against a person for any reason related to race, age, religion, gender, marital status, national origin, or any physical or mental disabilities.

• An employer must pay for unemployment insurance, contribute to Social Security, and provide workers’ compensation funds in case of a work-related injury or illness.