Career Planning
What is the first step in career planning?
Self-assessment (understanding your skills, values, and interests).
What is the difference between wages and salary?
Wages are hourly pay, while a salary is a fixed amount paid annually, regardless of hours worked.
What is budgeting?
Budgeting is the process of creating a plan to spend your money, balancing your income with your expenses.
What is compound interest?
Compound interest is interest calculated on the initial principal and also on the accumulated interest from previous periods.
What is FICA?
FICA (Federal Insurance Contributions Act) is the U.S. law that mandates payroll taxes for Social Security and Medicare.
What is a resume used for?
A resume is a document that outlines your education, skills, experience, and accomplishments to apply for a job.
What is a 401(k)?
A 401(k) is a retirement savings plan sponsored by an employer that allows employees to save and invest for their retirement with tax advantages.
What should an emergency fund cover?
An emergency fund should cover 3 to 6 months of living expenses to handle unexpected situations like job loss or medical emergencies.
What is the purpose of a stock?
A stock represents ownership in a company and allows investors to share in the company's profits or losses.
What is a tax deduction?
A tax deduction is an expense that reduces your taxable income, thereby lowering your tax bill.
What is networking?
Networking is the process of building and maintaining professional relationships that can help you in your career.
What does "net income" refer to?
Net income is the amount of money you take home after all deductions (like taxes and insurance) are subtracted from your gross income.
What is the difference between needs and wants in financial planning?
Needs are essential items like housing and food, while wants are non-essential items like entertainment or luxury goods.
What is a mutual fund?
A mutual fund pools money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other assets.
What is a W-2 form used for?
A W-2 form reports the wages earned by an employee and the taxes withheld from their paycheck.
What is a career goal?
A career goal is a long-term target you set for your professional development (e.g., becoming a manager or owning a business).
What is an internship?
An internship is a temporary work experience offered by companies to help students or recent graduates gain practical skills in their field.
What does "living within your means" mean?
Living within your means means spending less than or equal to your income, avoiding debt accumulation.
What is diversification in investing?
Diversification is spreading investments across various assets to reduce risk.
What is health insurance?
Health insurance is a type of coverage that pays for medical expenses, reducing the financial burden of healthcare.
What does "career advancement" refer to?
Career advancement refers to progressing in your career, such as getting promotions or increasing your responsibilities.
Why is job satisfaction important?
Job satisfaction impacts your overall well-being, work motivation, and long-term career success.
What is a credit score?
A credit score is a number that represents your creditworthiness, based on your credit history and current financial situation.
What is the difference between stocks and bonds?
Stocks represent ownership in a company, while bonds are loans to a company or government that pay interest over time.
What is a tax refund?
A tax refund is the return of excess tax payments made throughout the year, typically when you’ve paid more taxes than required.