Personal Finance

Learning Objectives
Chapter 2: Career 1. Identify the key steps in
successful career planning
Planning 2. Sources of income
3. Analyze the financial and legal
aspects of employment – Types of
employee benefits
4. Practice effective employment
search strategies
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Do you remember the 1st step in personal Evaluate Your Financial Health / Position
financial planning?

Evaluate Your Financial Health

• Personal Financial Statement Analysis
• The future financial status of individuals depends on
your education level and skills; occupation
selection; status of the economy

Evaluate Your Financial Health / Position The Top 20 Fastest-Growing Careers For 2023
Growth
Rank Career Median Pay
Rate
#1 Nurse practitioner $125,900 per year 45.70%
#2 Wind turbine service technician $57,320 per year 44.30%
#3 Ushers, lobby attendants, and ticket takers $24,440 per year* 40.50%
#4 Motion picture projectionists $29,350 per year* 40.30%
#5 Restaurant cook $30,910 per year 36.60%
#6 Data scientists $103,500 per year 35.80%
#7 Athletes and sports competitors $94,270 per year 35.70%
#8 Information security analyst $102,600 per year* 34.70%
#9 Statistician $96,280 per year* 32.70%
#10 Umpires, referees, and other sports officials $36,010 per year 31.70%
#11 Web developers $78,300 per year* 30.30%
#12 Animal caretaker $29,790 per year 29.90%
#13 Choreographer $42,700 per year 29.70%
#14 Taxi drivers $37,540 per year* 28.50%
#15 Medical or health services manager $101,340 per year* 28.30%
#16 Logistician $77,030 per year* 27.70%
#17 Physician Assistant $121,530 per year* 27.60%
#18 Solar photovoltaic installer $45,230 per year 27.20%
#19 Animal caretakers $29,790 per year 27.10%
#20 Physical therapy assistant or aide Personal Finance $57,240 per year 26.50% 6
 2.1 Developing your Career Plan
Freddie Duarte is contemplating going to graduate school at night for a master’s
degree so he can advance his career and earn more than his current $74,000
salary income. He is a sales account manager for a health care organization, and
on the side he has a small business maintaining aquariums for medical and other
small offices. How much more income can Freddie expect over an anticipated
40-year career if he obtains the advanced degree?
A. $100,000 B. $200,000
C. $300,000 D. $400,000
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2.1 Developing your Career Plan
q Career planning can help you identify an
employment pathway that aligns your interests and
abilities with the tasks and responsibilities expected
by employers.
2.1 Developing your Career Plan
q Career plan provides a strategic guide for one’s
career through short-, medium-, longer-, and long-
term goals as well as future education and work-
related experiences.

q Your focus should not be simply a job, which is a paid
position of regular employment, but a career. The
progression of a career will include a number of
related jobs
q A career is the lifework chosen by a person using
his or her personal talent, education, and training
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q A career that suits you well will give you
opportunities to display your abilities in jobs you
find satisfying while providing balance between
work and your personal life
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2.1 Developing your Career Plan 2.1 Developing your Career Plan
q Values are the principles, standards, or qualities
considered worthwhile or desirable. They are
personal preferences, not right or wrong.

q The kinds of values employers prefer in employees

are personal integrity, adaptability, dedication,
dependable, responsible, loyal, passionate,
professional, self-confident, self-motivated, and
willingness to learn.
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 2.1 Developing your Career Plan
q Professional interests are topics and activities related to
employment about which you have feelings of curiosity
or concern.
q Interest inventories are measures that assist people in
assessing and profiling the interests and activities that
give them satisfaction.
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2.1 Developing your Career Plan
q A career goal can be a specific job (e.g., cost accountant, computer
engineer, teacher, human resources manager) or a particular field of
work (e.g., health care, communications, green engineering).
q Focus on a series of jobs that form a career ladder. A career ladder
describes the progression from entry-level positions to higher levels
of pay, skill, responsibility, or authority.
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2.1 Developing your Career Plan
Human capital: the skill set, knowledge, and other intangible
assets of individuals that can be used to earn income and create
economic value for individuals, employers, or communities.
q Abilities and Aptitudes:
ü Professional abilities: job-related activities that you can
per- form physically, mentally, artistically, mechanically, and
financially.
ü Aptitudes: The natural abilities and talents that individuals
possess.
q Experiences
q Education and Professional Training 17
Personal Finance
2.1 Developing your Career Plan
q Think about the following questions to help evaluate
your interests:
o What courses in college have you enjoyed the most?
o What projects did you enjoy the most?
o Are you a people person or do you prefer to be in the
background?
o What are your leisure time activities and hobbies?
o What activities do you that you enjoy the most?
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2.1 Developing your Career Plan
q Benefits and Costs: When making career choices, you
must weigh the benefits against the costs
o Benefits could include a big salary, likelihood of personal
growth and job advancements, and high job satisfaction.
o Costs might include living in a less-desirable geographic area
and climate, being far from old friends and family, sitting at a
desk all day, working long hours, and/or doing too much
traveling.
o Other consideration: No-limits job; Lifestyle trade-offs
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2.1 Developing your Career Plan
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 Freelancing in the “Gig Economy” and Entrepreneurship
2.1 Developing your Career Plan

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2.1 Developing your Career Plan 2.2. FINANCIAL AND LEGAL ASPECTS OF
EMPLOYMENT
q Bias Toward — Underestimating Income:
q Is College Worth the Cost?
o People tend to underestimate the fair value of their labor in
o Education is more than an investment; it is a treasure
the future. This suggests that people overvalue the pay of a
o College graduates can earn twice as much as those with a
new job and undervalue the value of future economic
high school diploma, and their unemployment rate is lower
benefits.
than the high schoolers
o Consider staying at an employer for a longer time than usual
to enjoy the promotions and higher pay later on in life.
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2.2. FINANCIAL AND LEGAL ASPECTS OF 2.2. Financial And Legal Aspects Of Employment
EMPLOYMENT
q Employee Benefits are so important! q Employee Benefits are so important!
o Employee benefits (or nonsalary benefits) are forms of remuneration
provided by employers to employees that result in the employee not
having to pay out-of-pocket money for certain expenses.
o Examples include paid vacations, health care, paid sick leave, child care,
tuition reimbursement, and financial planning services
o To put monetary values on employee benefits, you may (1) place a market
value on the benefit or (2) calculate the future value of the benefit
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 2.2. Financial And Legal Aspects Of Employment 2.2. Financial And Legal Aspects Of Employment

q Employee Benefits are so important!

q Know Your Legal Employment Rights such as unemployment
insurance, health care insurance, workers’ compensation
benefits for job-related injuries or illness…

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2.2. Financial And Legal Aspects Of Employment

q Assessing the Benefits of a Second Income:

Keep track of
your Job
search

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Good habits for career planning “Diversify Income”- “Đa thu”

SOURCES OF INCOME
• Earned income (from your salary earned at your primary job)
• Business income (money you earn from your own business or side
hustle)
• Interest income (from bank account savings)
• Dividend income (from stocks and shares)
• Rental income (or other real estate income)
• Capital gains (money earned from the sale of assets like art, loans,
businesses, and stocks)
• Royalties and licensing income

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 Let’s play Uber games! Minicase Discussion
• Tony Dũng, age 21, expects to graduate next spring with a bachelor’s
https://ig.ft.com/uber-game/ degree in business administration. Tony’s grades are mostly As and Bs, and
he has worked part-time throughout his college career. Tony is vice
president of the Student Marketing Association on his campus. He would
like to work in management or marketing for a medium- to large-size
employer. Because he loves the outdoors, Tony thinks he would prefer a job
in HCM city or Da Nang city.
• What would you recommend to Tony on the importance of career planning
regarding:
–Clarifying his values and lifestyle trade-offs?
–Enhancing his career-related experiences before graduation?
–Creating career plans and goals?
–Understanding his work-style personality?
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–Identifying job opportunities?
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Minicase Discussion
• Tony Dũng, 21 tuổi, dự kiến ​sẽ tốt nghiệp vào mùa xuân tới với tấm bằng
cử nhân quản trị kinh doanh. Điểm của Tony chủ yếu là A và B, và anh ấy
đã làm việc bán thời gian trong suốt quá trình học đại học của mình. Tony là
phó chủ tịch Hiệp hội Tiếp thị Sinh viên trong trường của mình. Anh ấy
muốn làm việc trong lĩnh vực quản lý hoặc tiếp thị cho một nhà tuyển dụng
quy mô vừa và lớn. Vì yêu thích hoạt động ngoài trời nên Tony nghĩ anh sẽ
thích làm việc ở TP.HCM hoặc Đà Nẵng hơn.
• Bạn muốn đưa ra lời khuyên nào cho Tony về tầm quan trọng của việc lập
kế hoạch nghề nghiệp liên quan đến:
• Làm rõ các giá trị và sự đánh đổi trong lối sống của anh ấy?
• Nâng cao kinh nghiệm liên quan đến nghề nghiệp của mình trước khi tốt
nghiệp?
• Lập kế hoạch và mục tiêu nghề nghiệp?
• Hiểu được tính cách trong phong cách làm việc của anh ấy?
• Xác định cơ hội việc làm? Personal Finance
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