investment in yourself 1.1.9 family economics & financial education take charge of your finances

Investment in Yourself 1.1.9

Family Economics & Financial Education

Take Charge of Your Finances

NEFE High School Financial Planning ProgramUnit 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

• True

• False


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. Educationo Lack of education limits your career choice

and earning power

Factors that Influence IncomeEarning Power: A persons ability to

earn money.


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


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


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?


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.



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?


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 2000-2010. These people are prepared for this significant change in the job market.• US: 8.9%



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%



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%



7-H

Average College CostsSample Average Undergraduate Costs, 2005-06

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

Edu

catio

n Earnings

Bureau of Labor Statistics, 2006


Education vs IncomeEducational Attainment U.S. Average

Income (2007)

Percentage of U.S.

Population (2007)

Percentage of State Population

(2009)

Not high school graduate $33,913 15.2% 9.6%

High school graduate including GED

$46,938 25.2% 25.4%

Some college no degree $54,881 21.8% 27%

Associate degree $64,537 8.9% 9.2%

Bachelor’s degree $88,948 18.7% 19.5%

Master’s, doctoral, professional degree

$115,179 10.2% 9.3%


7-J

How Much is Class Worth?

NEFE High School Financial Planning Program

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

1 2 3 4 5 6 7 8Some 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

Mill

ion

s o

f 2

00

6 d

olla

rs

Worklife earnings estimates by highest level of educational attainment

Source, US Census Bureau, current population survey, educational attainment in the US. 2005

11.2

1.51.6

2.5

2.1

3.4

4.4

How much does Bill Gates make in one hour?

$288,000

in one hour


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 ResearchFunded 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 ResearchFunded 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

opportunities1. 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


Largest Numerical Increases in Occupations

Source: Bureau of Labor Statistics Occupational Handbook – Tomorrow’s Jobs December 2005

• Optometrists• Physicians and

surgeons• Lawyers• Pharmacists• Chiropractors

Professional

Degrees

• Postsecondary teachers• Computer and

information scientists, research• Chemistry and

biophysics• Pharmacists• Clinical, counseling

Doctorate Degree

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• 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




• 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 Secondar

y Vocational Award

1.1.2.G1




• Gaming managers• Construction and

building inspectors• First line

supervisors/managers (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




• 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

occupationsSource: 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

occupationsSource: 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

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DECLINE IS DUE To: declining industry employment

technological advancements changes in business practices

Complete Chart InformationForm of Employment

Define Advantages Disadvantages

Employee

Self-Employed

Entrepreneur

Complete Chart InformationForm of Employment

Define Advantages Disadvantages

Employee Worker who is hired to do a job.

Little risk, not responsible for over-head costs.

Expectations Time ClocksMake 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.

RISKSNo guaranteesNo regular paycheckNo bossLong hoursAssume debt of business

REWARDSBe your own bossKeep profitsControlSatisfactionPursue talent and creativityWhat are some other

rewards?

Characteristics of an Entrepreneur

Willing to take risksA person who creates a business

from scratchSelf employedStrong sense of disciplineBe your own bossBeat the competition

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

investment in yourself 1.1.9 family economics & financial education take charge of your finances

Documents

income education

source of income slide

education olack of education

charge america institute

norton school of family

sources of income list

true false true false

career choice