Personal Finance Garman/Forgue Ninth Edition Chapter 2: Career Planning PPT slide program prepared by Amy Forgue and Ray Forgue.

Learning Objectives Identify the key steps in successful financial planning. Clarify your work-style personality. Copyright ©Houghton Mifflin Company. All rights reserved.

Learning Objectives Analyze the financial and legal aspects of employment. Practice effective employment search strategies. Copyright ©Houghton Mifflin Company. All rights reserved.

Career Planning Career: Lifework chosen by a person to use personal talent, education, and training. Career Planning: Finding employment that will use your interests and abilities and that will support you financially. Copyright ©Houghton Mifflin Company. All rights reserved.

Key Steps in Career Planning Create your Career Goal and Career Plan. Clarify your interests Interest Inventories: Scaled surveys that assess career interests and activities. Copyright ©Houghton Mifflin Company. All rights reserved.

Key Steps in Career Planning Review your Abilities (Professional abilities, Aptitudes) Experiences Education and professional training Copyright ©Houghton Mifflin Company. All rights reserved.

Key Steps in Career Planning Identify your values. Values: Principles, standards, or qualities, that you consider desirable. Copyright ©Houghton Mifflin Company. All rights reserved.

Key Steps in Career Planning Consider costs, benefits, and lifestyle trade-offs. Align yourself with tomorrow’s employment trends. Copyright ©Houghton Mifflin Company. All rights reserved.

Key Steps in Career Planning Take advantage of networking. Professional Networking: Making and using contacts with individuals, groups, and other firms to exchange career information. Copyright ©Houghton Mifflin Company. All rights reserved.

Key Steps in Career Planning Target preferred employers. Preferred Employer: Employers that would suit you best. Copyright ©Houghton Mifflin Company. All rights reserved.

Key Steps in Career Planning Be willing to change career goals and plans. Know your preferred work-style personality. Copyright ©Houghton Mifflin Company. All rights reserved.

Financial and Legal Aspects of Employment Compare salary and living costs in different cities. Compare using city indexes. City Indexes: Comparing wages and cost of living for various employment locations. Copyright ©Houghton Mifflin Company. All rights reserved.

Financial and Legal Aspects of Employment Place values on employee benefits. Nonsalary (or Employee) Benefits Place a market value on the benefit. Copyright ©Houghton Mifflin Company. All rights reserved.

Financial and Legal Aspects of Employment Place a market value on the benefit. Calculate the future value of the benefit. Know your legal employment rights. Copyright ©Houghton Mifflin Company. All rights reserved.

Effective Employment Search Strategies Assemble a resume. Resume Chronological Format Skills Format Functional Format Copyright ©Houghton Mifflin Company. All rights reserved.

Effective Employment Search Strategies Identify job opportunities, such as: Career Fairs Classified Advertisements Employment Agencies The Internet Copyright ©Houghton Mifflin Company. All rights reserved.

Effective Employment Search Strategies Write an effective cover letter. Cover Letter: Letter of introduction sent to a prospective employer to get an interview. Copyright ©Houghton Mifflin Company. All rights reserved.

Effective Employment Search Strategies Obtain strong reference letters. Apply! Copyright ©Houghton Mifflin Company. All rights reserved.

Effective Employment Search Strategies Interview for success. Job Interview: Formal meeting between employer and potential employee to discuss job qualifications and suitability. Copyright ©Houghton Mifflin Company. All rights reserved.

Interview for Success Do some research before the interview. Compile revealing personal stories. Prepare questions to ask the interviewer. Prepare responses for anticipated interview questions. Copyright ©Houghton Mifflin Company. All rights reserved.

Interview for Success Create positive responses to negative questions. Be ready for telephone interviews. After the interview, evaluate it and send a thank-you note Copyright ©Houghton Mifflin Company. All rights reserved.

Effective Employment Search Strategies Negotiate. Accept the job. Copyright ©Houghton Mifflin Company. All rights reserved.

Top 3 Financial Missteps in Career Planning People slip up in building and maintaining good credit when they do the following: Don’t learn as much as possible about a company before going for an interview. Copyright ©Houghton Mifflin Company. All rights reserved.

Top 3 Financial Missteps in Career Planning Change jobs and cash out employer-sponsored retirement savings plans, instead of leaving it there, transferring it to the new employer’s 401 (k) plan, or moving it to a rollover IRA account. Fail to use the COBRA law to continue participating in the old employer’s medical health plan benefits for up to 18 months. Copyright ©Houghton Mifflin Company. All rights reserved.

Good Money Habits in Career Planning Take the time to plan and make the effort required to obtain employment in your career. Identify your career planning values and live them in your selection of jobs and your performance at work. Copyright ©Houghton Mifflin Company. All rights reserved.

Good Money Habits in Career Planning Do not miss an opportunity to continually enhance your education and professional training. Understand your preferred work-style personality Practice effective employment search strategies, especially interviewing skills. Copyright ©Houghton Mifflin Company. All rights reserved.