Transcript Ch1 - Quia
How Your Choices Affect Income Chapter 1 Introduction Financial literacy is knowledge of: Facts Concepts Principles Technological tools …that are fundamental to being smart about money. Introduction Financial responsibility means You are accountable for your future financial well-being. You strive to make wise personal financial decisions. Personal Skills and the Job Market Job vs Career Skill Set Hard vs Soft Skills Interests What jobs offer the best prospects? Fastest Growing Occupations Occupation Expected Growth 2008-18 Education Required Biomedical engineers 72% Bachelor’s degree Network, systems, and communications analysts 52% Bachelor’s degree Home health aides 50% Short-term training and on-thejob experience Financial examiners 46% Bachelor’s degree Medical scientists 41% Doctoral degree Physician assistants 39% Master’s degree Skin care specialists 38% Post-secondary skills Bureau of Labor Statistics 10 Best Jobs of 2015 1. Marketing Executive Median Annual salary: $119,433 2. Software Developer (Applications) Median Annual salary: $92,892 3. Registered Nurse Median Annual salary: $92,892 4. Industrial Engineer Median Annual salary: $81,036 5. Network and Computer System Administrator Median Annual salary: $74,574 10 Best Jobs of 2015 6. Web Developer Median Annual salary: $58,281 7. Medical and Health Services Manager Median Annual salary: $90,708 8. Physical Therapist Median Annual salary: $80,350 9. Speech-Language Pathologist Median Annual salary: $70,720 10. Sales Manager Median Annual salary: $106,038 Career Builder & Economic Modeling Specialists, Intl Job Choices and Income Values - principles that reflect the worth you place on an idea or action Goals – desired outcomes based on one’s values for which a plan of action is carried out Job Choices and Income Interests Interest inventories Abilities Experience Trade-offs Education and Income Formal education Formal training Informal Education On-the-job training Self-training Age and Education Matter Is College worth the cost? The answer is a resounding “yes” The return on investment for a bachelor’s degree is 15 percent a year Age and Education Matter Note: Data are for persons age 25 and over. Earnings are for full-time wage and salary workers. http://www.bls.gov/emp/ep_chart_001.htm The Economy Refers to all activities related making and distributing goods and services in a geographic area or country Factors of production Markets Economics: the study of choices The Economy What will be produced? How will it be produced? Who will consume the product? Economics: the study of choices The Economy Market economy Supply and demand Individuals act in their own self-interest “The invisible hand” The Economy law of supply There is a positive relationship between price and quantity supplied, other things being equal. The Economy law of demand There is a negative relationship between price and quantity demanded, other things being equal. The Economy The Business Cycle The Costs of Education Tuition Books Fees Room/Board Public/Private Degree Programs Vocational/Technical Programs The Cost of Education Columbia University (NY) - $55,056 Vassar College (MA) - $53,090 Harvey Mudd College (CA) - $52,916 Trinity College (CT) - $52,760 Sarah Lawrence (NY) - $52,550 Blue Mountain College (MS) - $11,212 LeMoyne-Owen College (TN) - $10,900 Tougaloo College (MS) - $10,600 Rust College (MS) - $9,500 Brigham Young University (Provo) - $5,300 US News and World Report The Cost of Education University of Pittsburgh - $18,192 Maine Maritime Academy - $17,688 Penn State University (University Park) - $17, 514 Colorado School of Mines - $17,383 College of William and Mary (VA) - $16,919 Northeastern State University (OK) - $4,994 University of Wyoming - $4,646 Elizabeth City State University (NC) - $4,497 Fort Hayes State University (KS) - $4,469 Bismarck State College (ND) - $4,222 US News and World Report Paying for School Financial Aid Loans Grants Scholarships Work study Coop Work Mom Finding Jobs Classified Advertisements Internet and Job Boards School Placement Services Employment Agencies Temp Services Career Fairs Networking Landing a Job Cover Letter Resume References Application Interview Thank you Total Compensation Wages/Salary Insurance Time off Retirement/Pension More? Unemployment Cyclical Structural Frictional Natural Rate Unemployment Unemployment is defined by the Bureau of Labor Statistics (BLS) as people who do not have a job, have actively looked for work in the past four weeks, and are currently available for work. Persons who were not working and were waiting to be recalled to a job from which they had been temporarily laid off are also included as unemployed. Receiving benefits from the Unemployment Insurance (UI) program has no bearing on whether a person is classified as unemployed. The unemployment rate represents the number unemployed as a percent of the labor force. 4.9%/3.1%/4.1% Labor Force The sum of employed and unemployed persons, aged 16 and older, excluding inmates and armed forces. Retired persons, students, family caregivers, and others who are neither working nor seeking work (discouraged workers). Marginally attached workers - those not in the labor force who want and are available for work, and who have looked for a job sometime in the last 12 months, but not in the 4 weeks preceding the survey. Discouraged workers - subset of marginally attached workers not currently looking for work The Good News • Median household income rose 5.2% between 2014 -2015 • • • Largest annual increase since 1967 Highest level since 2007 $56,516 • Poverty rate fell to 13.5% (decrease of 1.2%) • • • • 2006 – 12.3% 2000 – 11.3% (40-year low) Family of four - $24,036 Single individual - $12,331 Questions? Homework Write a cover letter & resume Choose a position you’re interested in and sell yourself Properly formatted