Sources of income and the

relationship between income and

career preparation.
 Review Statements
1. Education & skills, economy conditions, supply
and demand, plus the value of the work to
society are factors that influence potential
income.
2. Opportunity Cost is the cost of something in
terms of an opportunity forgone (and the
benefits that could be received from that
opportunity), or the most valuable forgone
alternative, i.e. the second best alternative.
Or the cost of a missed opportunity.
Sources of Income????

Source
of
Income
 Pay check
Sources of Income????
Loans
Inheritance
Social security
Free Lunch or other
government programs
Welfare, Food Stamps Source
Alimony of
Child Support
Income
Interest
Gift, Charity, Church
Part time job
Self Employment
Grants, Scholarships
Allowance
Found Money, Yard sales,
Sale possession.
 Factors that Influence Income
Earning Power: A persons ability to earn money.

Analyze factors that affect income.

1. Income vs. Education
o Lack of education limits your career choice
and earning power
 Income vs. Education
Percentage of Percentage of
U.S. Average
Educational U.S. Utah
Income
Attainment Population Population
(2001)
(2000) (2000)
Not high school $16,234 19.6% 12.3%
graduate
High school graduate $24,885 28.6% 24.6%
including GED
Some college no $28,264 21.0% 29.1%
degree
Associate degree $33,644 6.3% 7.9%
Bachelor’s degree $48,892 15.5% 17.9%
Master’s degree $63,205
Doctorate degree $86,036 8.9% 8.3%
Professional degree $96,779
 Average earnings of year-round, full-time
workers age 25 to 34 years old
Highest Level of Education Average
Annual Earnings
Less than 9th grade $15,875
9th to 12th grade (no diploma) $20,915
High school graduate $25,655
Some college, no degree $29,310
Associate degree (2yr degree) $31,215
Bachelor’s degree or higher $48,190
 Income vs. Education
Largest Numerical Increases in Occupations
Largest Numerical Increases in
Fastest Growing Occupations Education/Training Category
Occupations
Veterinarians Professional Degree Lawyers
Pharmacists Physicians and surgeons
Chiropractors Pharmacists
Optometrists Clergy
Lawyers Veterinarians
Computer and information Doctorate Degree Postsecondary teachers
Biological scientists
scientists, research Computer and information scientists, research
Medical scientists Medical scientists
Postsecondary teachers Astronomers and physicists
Biological scientists
Astronomers and physicists
Audiologists Master’s Degree Educational, vocational, and school counselors
Speech-language pathologists Physical therapists
Mental health and substance abuse social Speech-language pathologists
workers Psychologists
Substance abuse and behavioral disorder Mental health and substance abuse social workers
counselors
Physical therapists
Computer and information systems managers Bachelor’s Degree or higher General and operations managers
Public relations managers [plus work experience] Computer and information systems managers
Advertising and promotions managers Management analysts
Sales managers Financial managers
Medical and health services managers Sales managers
Computer software engineers, applications Bachelor’s Degree Computer software engineers, applications
Computer software engineers, systems software Computer software engineers, systems analysts
Network and computer systems administrators Elementary school teachers, except special education
Network systems and data communications Network and computer systems administrators
analysts
Database administrators

Fastest Growing Occupations
Computer support specialists
Medical records and health information technicians
Physical therapy assistants
Occupational therapist assistants
Veterinary technologists and technicians
Desktop publishers
Fitness trainers and aerobics instructors
Surgical technologists
Respiratory therapy technicians
Gaming dealers
First-line supervisors/managers of correctional
officers
Aircraft cargo handling supervisors
First-line supervisors/managers of protective
service workers, except police, fire, and
corrections
Private detectives and investigators
Transportation, storage, and distribution managers
Telecommunications line installers and repairers
Actors
Recreational vehicle service technicians
Interpreters and translators
Police and sheriff’s patrol officers
Medical assistants
Social and human service assistants
Dental assistants
Pharmacy technicians
Ambulance drivers and attendants, except
emergency medical technicians
Personal and home care aides
Home health aides
Physical therapist aides
Occupational therapist aides
Veterinary assistants and laboratory animal
caretakers
Education/Training Category
Associate’s Degree
Postsecondary Vocational Award
Work Experience in Related Occupation
Long Term On-the-Job Training [more than
12 months]
Moderate Term On-the-Job Training
[1 to 12 months]
Short Term On-the-Job Training [0 to 1
month]
Largest Numerical Increases in
Occupations
Registered nurses
Computer support specialists
Medical records and health
information technicians
Paralegals and legal assistants
Dental hygienists
Automotive service technicians and mechanics
Licensed practical and licensed vocational nurses
Welders, cutters, solders, and braziers
Hairdressers, hairstylists, and cosmetologists
Fitness trainers and aerobics instructors
First-line supervisors/managers of retail sales workers
First-line supervisors/managers of construction trades and
extraction workers
First-line supervisors/managers of office and administrative
support workers
First-line supervisors/managers of food preparation and
serving workers
First-line supervisors/managers of mechanics, installers, and
repairers
Cooks, restaurant
Police and sheriff’s patrol officers
Electricians
Carpenters
Maintenance and repair workers, general
Customer service representatives
Truck-drivers, heavy and tractor-trailer
Medical assistants
Executive secretaries and administrative assistants
Social and human service assistants
Combined food preparation and serving workers, including
fast food
Retail salespersons
Cashiers, except gaming
Office clerks, general
 Jobs and Educational Level

Jobs requiring an associate’s degree are expected to grow 32% during 2000-2010.
 Fastest Growing Occupations

Healthcare occupations account for 10 of the 20 fastest growing occupations, while

computer occupations account for 5 out of 20 in the economy. These 15 computer and
healthcare occupations combined will add more than 1.5 million new jobs
 Fastest Growing Jobs

The occupations listed will account for approximately one-third of all new jobs
from 2002 – 2012. This is over eight million jobs combined.
 Largest Declining Jobs

Declining occupational employment stems from declining industry employment,

technological advancements, changes in business practices, and other factors. Increased
productivity and farm consolidations are expected to account for a decline of 238,000
farmers and ranchers.
 Factors that Influence Income
Earning Power: A persons ability to earn money.

1. Income vs. Education

2. Workers Skills
• competent work,
• produce a good product,
• ability to operate equipment,
• implement knowledge and abilities
 Factors that Influence Income
Earning Power: A persons ability to earn money.

1. Income vs. Education

2. Workers Skills
3. Conditions of the economy,
• War,
• terror,
• unemployment,
• scarcity,
• acts of God
 Factors that Influence Income
Earning Power: A persons ability to earn money.

1. Income vs. Education

2. Workers Skills
3. Conditions of the economy

4. Supply and Demand

• Scarcity and Abundance
• World Trade
 Factors that Influence Income
Earning Power: A persons ability to earn money.

1. Income vs. Education

2. Workers Skills
3. Conditions of the economy
4. Supply and Demand

5. Value of the work to society: How important

is your profession or skill.
• If you were to be on a deserted island for
15 years, what occupations would you like
the four people with you, to have?
 Review Career Plan
• What are the educational requirements?

 Traits for the work place Worksheet.

(Color in your skill level)
• Income Potential

• What skills will I need?

– What will the cost and benefits of developing new skills
be?
• Time, energy, and money
 How Do You Find The Career Of
Your Dreams?
• Study what interests you, and learn how
that applies to life/careers.
• Look at different jobs options, and figure
out which job best fits you (intellectually,
physically, and financially)
• Once you figure out a career path you
want to take, be aggressive in following it.
Don’t let opportunity pass you by.
 Opportunity Cost
• How does this relate to Opportunity Cost?
– Making the effort right now for a good career and
education will cost you time, energy, and money, but in
the long run it will pay off and you will have more time
and money. Hopefully that will give you energy to enjoy
it.

• Choosing one option may mean giving up

altogether another goal.
• It’s a trade off!

• Remember: Invest in Yourself, it is Well Worth

the Effort!!!
 Complete Chart Information
Form of Define Advantages Disadvantages
Employment

Employee

Self-
Employed

Entrepreneur
 Complete Chart Information
Form of Define Advantages Disadvantages
Employment
Employee Worker who Little risk, not Expectations
is hired to do responsible for Time Clocks
a job. over-head costs. Make money for
boss.

Self- One who You are the boss Responsible for

operates a set your hours over-head costs,
Employed business, and pay. taxes, employees
profession, Receive the and keeping
or a benefits of profit- business going.
consultant. making.
Entrepreneur Practice of You’re the boss High risk.
starting new motivating, Must be motivated.
businesses receive the Stressful hard on
benefits of profit-
relationships.
making.
 Cost of Living for Selected U.S. Cities
Benefit Option Description

Base salary

Fringe benefits, also known as

employee benefits

Opportunities for
advancement and work incentives.

Employer provided
services

Additional perks

Location and
environment
 Cost of Living for Selected U.S. Cities
Benefit Option Description
Base salary Dollar amount a person will receive in his/her monthly
paycheck before taxes.
Fringe benefits, Additional compensation offered by a company beyond an
also known as individual’s wage, salary, commissions, or other cash
payments.
employee benefits
Paid sick time, holidays and vacations, bonuses, health insurance,
life insurance, workman’s compensation, retirement, contributions,
etc.
Opportunities for Evaluate if a person can easily advance within the
advancement and work company and earn more money.
incentives.
Employer provided Gym memberships, flexible hours, merchandise discounts,
services child care, etc.
Additional perks Relocation allowances, company car, repayment of
education loans or expenses, stock options, etc.
Location and Is the job in a desired community? Are the time and
environment resources available to travel long distances to get to work?
Does the community have a low crime rate, good schools
and a desired climate?
 Cost of Living Equation
#1 – SARA’S TWO JOBS:
􀂃 $35,000.00, Reno, NV, 105.1 cost of living index
􀂃 $40,000.00, Anchorage, AK, 123.1 cost of living index
Index city 2
Salary in city 1 x ------------------------ = Equivalent salary in city 2
Index city 1
123.1
$35,000.00 in Reno x -------------- = Equivalent salary in Anchorage
105.1

$35,000.00 x 1.17 = ?

$40,950.00 = Equivalent salary in Anchorage

 Cost of Living Equation #2
#2 – JOE’S TWO JOBS:
􀂃 $24,000.00, Denver, CO, 102.9 cost of living index
􀂃 $32,000.00, Seattle, WA, 148.2 cost of living index

Index city 2
Salary in city 1 x ------------------------ = Equivalent salary in city 2
Index city 1

148.2
$24,000.00 in Denver x -------------------- = Equivalent salary in Seattle
102.9

$24,000.00 x 1.44 = ?

$34,560.00 = Equivalent salary in Seattle

 Cost of Living for Selected U.S.
Cities
• Refer to hand out
Complete the Comparing Job
Offers worksheet