Investment in Yourself Family Economics & Financial Education Take Charge of Your Finances

NEFE High School Financial Planning Program Unit 7 – Your Career: Doing What Matters Most WHAT DO YOU THINK? T/F Forty-four percent of teenagers worked last summer. Most of them worked full-time jobs (35 or more hours a week). Teens most often work in the food service and retail industries. The average American will have had 10 jobs between the ages of 18 and 38. Every year, about one-tenth of workers change jobs to take advantage of better opportunities. True False True False

NEFE High School Financial Planning Program Unit 7 – Your Career: Doing What Matters Most SOURCES OF INCOME List all the sources of income for a typical teenager (legal only please).

Sources of Income???? Source of Income

Source of Income Pay check Loans Inheritance Social security Free Lunch or other government programs Welfare, Food Stamps Alimony Child Support Interest Gift, Charity, Church Part time job Self Employment Grants, Scholarships Allowance Found Money, Yard sales, Sale possession. Sources of Income????

1. Value – a fundamental belief or practice about what is desirable, worthwhile, and important to an individual. 2. Goal – the end result of something a person intends to acquire, do, reach, or accomplish sometime in the near or distant future. 3. Need – something thought to be a necessity 4. Want – something unnecessary but desired Factors that Influence Income

© Family Economics & Financial Education – May 2009 – Career Development Unit – Investment in Yourself – slide 7 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona Human Capital 5. Human Capital – skills acquired through a process of self investment. What are examples of things you can do to increase human capital? –Summer jobs- Grades –Volunteer- Attendance record –Extra-curricular activities –Member or organizations

6. Income vs. Education oLack of education limits your career choice and earning power Factors that Influence Income Earning Power: A persons ability to earn money.

© Family Economics & Financial Education – May 2009 – Career Development Unit – Investment in Yourself – slide 9 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona Education vs. Income “Education is essential in getting a high-paying job. In fact, for all but 1 of the 50 highest paying occupations, a college degree or higher is the most significant source of education or training. Air traffic controller is the only occupation of the 50 highest paying for which this is not the case” 2004 Bureau of Labor Statistics Occupational Outlook Handbook, Tomorrow's Jobs Higher Education = Higher Estimated Lifetime Earnings

© Family Economics & Financial Education – May 2009 – Career Development Unit – Investment in Yourself – slide 10 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona Education vs. Income Activity Stand up with your colored square “Everyone standing represents the people who started high school. This activity will show the different paths people can choose during their lifetime and the different results.” Based upon 2007 US Bureau of Labor Statistics Data

Education vs. Income

© Family Economics & Financial Education – May 2009 – Career Development Unit – Investment in Yourself – slide 12 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona Orange If you are holding an orange card please sit. These 4 people represent 9.6% of Utah’s population who did not graduate from high school or earn a GED. On average, they earn $33,913 per year, the lowest wages of all workers US: 15.2% Congratulations! Everyone remaining finished high school. What jobs can be obtained with this education?

© Family Economics & Financial Education – May 2009 – Career Development Unit – Investment in Yourself – slide 13 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona Red If you are holding a red card please sit. These 10 people represent 25.4% of Utah’s population who graduated from high school or earned a GED. On average, in the United States, they earn $46,938 per year. US: 25.2% Congratulations! The remaining decided to further their education. What jobs can be obtained with this education?

© Family Economics & Financial Education – May 2009 – Career Development Unit – Investment in Yourself – slide 14 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona Green If you are holding a green card please sit. These 11 people represent 27% of Utah’s population who dropped out of college without finishing a degree. On average, in the United States, they earn $54,881 per year. US: 21.8% Congratulations! The remaining finished some kind of post-secondary education. What jobs can be obtained with this education?

© Family Economics & Financial Education – May 2009 – Career Development Unit – Investment in Yourself – slide 15 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona Yellow If you are holding a yellow card please sit. These 4 people represent 9.2% of Utah’s population who received their associate degree. On average, in the United States, they earn $64,537 per year. Jobs requiring an associates degree are expected to grow 32% between These people are prepared for this significant change in the job market. US: 8.9% What jobs can be obtained with this education?

© Family Economics & Financial Education – May 2009 – Career Development Unit – Investment in Yourself – slide 16 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona Blue If you are holding a blue card please sit. These 8 people represent 19.5% of Utah’s. population who received their bachelor's degree. On average, in the United States, they will earn $88,948 per year, which is more than twice what a high school graduate earns. US: 18.7% What jobs can be obtained with this education?

© Family Economics & Financial Education – May 2009 – Career Development Unit – Investment in Yourself – slide 17 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona Purple If you are holding a purple card please sit. These 4 people represent 9.3% of Utah’s. population who have completed their graduate or professional degree. On average, in the United States, they earn $115,179 per year. US: 10.2% What jobs can be obtained with this education?

NEFE High School Financial Planning Program Unit 7 – Your Career: Doing What Matters Most 7-H Average College Costs Sample Average Undergraduate Costs, Four Year Public Institutions Four Year Private Institutions Resident Out-of-State Resident $16,357 $26,304 $33,301 Source: College Board’s Trends in College Pricing, 2006

7-I Education Earnings Bureau of Labor Statistics, 2006

© Family Economics & Financial Education – May 2009 – Career Development Unit – Investment in Yourself – slide 20 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona Education vs Income Educational Attainment U.S. Average Income (2007) Percentage of U.S. Population (2007) Percentage of State Population (2009) Not high school graduate$33, %9.6% High school graduate including GED $46, %25.4% Some college no degree$54, %27% Associate degree$64,5378.9%9.2% Bachelor’s degree$88, %19.5% Master’s, doctoral, professional degree $115, %9.3%

NEFE High School Financial Planning Program Unit 7 – Your Career: Doing What Matters Most 7-J How Much is Class Worth? NEFE High School Financial Planning Program Some high school, no degree High school diploma, or equivalent Associate Degree Professional Degree Doctoral Degree Master’s Degree Bachelor’s Degree Some college, no degree Millions of 2006 dollars Worklife earnings estimates by highest level of educational attainment Source, US Census Bureau, current population survey, educational attainment in the US

How much does Bill Gates make in one hour? $288,000 in one hour

NEFE High School Financial Planning Program Unit 7 – Your Career: Doing What Matters Most HUMAN CAPITAL IT LASTS A LIFETIME! -What are you currently investing in your Human capital? -What can you be doing to increase your human capital or develop traits that employers seek. -Extra curricular activities, member of organizations, part- time job, attendance record, grades….

1.1.2.G1 END of RAINBOW List all of the different jobs that have affected your life in the past 24 hours. − There are a lot of jobs out there, but not all are lasting jobs. © Family Economics & Financial Education – Revised May 2009 – Career Development Unit – Career Research Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

1.1.2.G1 © Family Economics & Financial Education – Revised April 2008 – Career Development Unit – Career Research Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Job Opportunities Pick a career path with future job opportunities Three factors influencing future job opportunities 1.Population - Affects the size of the labor force and the quantity of goods produced. 2.Labor force (workforce) - The total number of people employed or seeking employment in a country or region. 3.Supply and Demand for goods and services -The availability of jobs and the rate of pay is dependent upon the economic concept of supply and demand.

1.1.2.G1 Supply and Demand − Supply – the relationship of prices to the quantities of a good or service that sellers are willing to sell at any given point in time. − Demand – the relationship between prices and the corresponding quantities of a good or service individuals are willing to purchase at any given point in time.

1.1.2.G1 © Family Economics & Financial Education – Revised April 2008 – Career Development Unit – Career Research Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Largest Numerical Increases in Occupations Source: Bureau of Labor Statistics Occupational Handbook – Tomorrow’s Jobs December 2005 Optometrists Physicians and surgeons Lawyers Pharmacists Chiropractors Profession al Degrees Postsecondary teachers Computer and information scientists, research Chemistry and biophysics Pharmacists Clinical, counseling Doctorate Degree

1.1.2.G1 © Family Economics & Financial Education – Revised April 2008 – Career Development Unit – Career Research Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Largest Numerical Increases in Occupations Source: Bureau of Labor Statistics Occupational Handbook – Tomorrow’s Jobs December 2005 Physical therapist Educational, vocational and school counselors Substance abuse counselor Occupational therapy Master’s Degrees School teachers Accountant and auditors Computer software engineers Bachelor ’s Degree

1.1.2.G1 © Family Economics & Financial Education – Revised April 2008 – Career Development Unit – Career Research Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Largest Numerical Increases in Occupations Source: Bureau of Labor Statistics Occupational Handbook – Tomorrow’s Jobs December 2005 Dental hygienists Physical therapy assistant Registered nurses Paralegals and legal assistants Associate’ s Degrees Nursing aids and orderlies Hairdresser and cosmetologists Emergency medical technicians Post Secondary Vocational Award

1.1.2.G1 © Family Economics & Financial Education – Revised April 2008 – Career Development Unit – Career Research Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Largest Numerical Increases in Occupations Source: Bureau of Labor Statistics Occupational Handbook – Tomorrow’s Jobs December 2005 Gaming managers Construction and building inspectors First line supervisors/manage rs (food, retail) Work experience in related occupations Carpenters Cooks Electricians Fire fighting Long Term On-the-Job Training (more that 12 months)

1.1.2.G1 © Family Economics & Financial Education – Revised April 2008 – Career Development Unit – Career Research Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona Largest Numerical Increases in Occupations Source: Bureau of Labor Statistics Occupational Handbook – Tomorrow’s Jobs December 2005 Truck drivers Dental assistants Medical assistants Customer service representatives Moderate Term On-the Job Training (1 to 12 months) Retail salesperson Waiters and waitresses Home health aides Personal and home care aides Short Term On-the-Job Training (0 to 1 month)

1.1.2.G1 Healthcare occupations comprise 12 of the 20 fastest growing occupations Source: Bureau of Labor Statistics Occupational Handbook – Tomorrow’s Jobs December 2005

1.1.2.G1 Computer occupations account for 5 out of the 20 fastest growing occupations Source: Bureau of Labor Statistics Occupational Handbook – Tomorrow’s Jobs December 2005

1.1.2.G1 Increases in employment: health education, sales, transportation, office and administrative support, and food service

1.1.2.G1 DECLINE IS DUE To: declining industry employment technological advancements changes in business practices

Complete Chart Information Form of Employment DefineAdvantagesDisadvantages Employee Self- Employed Entrepreneur

Complete Chart Information Form of Employment DefineAdvantagesDisadvantages Employee Worker who is hired to do a job. Little risk, not responsible for over-head costs. Expectations Time Clocks Make money for boss. Self- Employed One who operates a business, profession, or a consultant. You are the boss set your hours and pay. Receive the benefits of profit-making. Responsible for over-head costs, taxes, employees and keeping business going. Entrepreneur Practice of starting, organizing, and managing a new business You’re the boss motivating, receive the benefits of profit- making. High risk for the sake of profit. Must be motivated. Stressful hard on relationships.

RISKS  No guarantees  No regular paycheck  No boss  Long hours  Assume debt of business

REWARDS  Be your own boss  Keep profits  Control  Satisfaction  Pursue talent and creativity  What are some other rewards?

Characteristics of an Entrepreneur  Willing to take risks  A person who creates a business from scratch  Self employed  Strong sense of discipline  Be your own boss  Beat the competition

Managers are people who do things right; leaders are people who do the right thing. -- Warren Bennis