Career Planning
What is the purpose of a resume?
To highlight qualifications and experience for a position
This tax form reports a person’s total income and deductions from the entire year and is needed to complete the tax return form.
W-2
What is the first step to Successful Financial Planning?
Track income and expenses
What is the first step to creating an effective budget?
Track income and expenses
Give 1 example of a liquid asset.
Cash, savings account, or checking account
Define Liquid Assets
An item with a monetary value that is cash right now; it does not need to be sold or wait for “mature” period
What is the purpose of a cover letter?
To inform the employer why you are interested in a position
Give 2 examples of employee benefits.
Retirement account (401k), perks, insurance, paid time off, etc…
What is the second step to Successful Financial Planning?
Create a SMART financial goal
When allocating money to your expense categories, how much of your planned income should be used; or how much should be left over?
All of the Planned Income should be used, there should $0 left over
What type of liability are credit cards?
Current liability
What is the difference between gross pay and net pay?
net pay = gross - taxes
Gross pay = income before taxes & deductions Net pay = income after taxes & deductions
Give 1 example of a soft skill and 1 example of a hard skill.
Soft skill = work hard, punctual, friendly, etc… Hard skill = operate technology/machine; take blood, anything that is a technical skill
People without itemized deductions will use this tax return form.
1040EZ
What is the fifth step to Successful Financial Planning?
Create and use a budget
Give 1 example of a fixed expense and 1 example of a variable expense that could be found a person’s budget.
Fixed expense = rent, car payment, insurance, cell phone Variable expense = food, gas, clothes
How is net worth calculated?
Total Assets minus Total Liabilities = Net Worth
Debt in which the total dollar value is expected to be paid after one year or longer
long-term liability
What are 3 components required on a resume?
Heading, education, work experience/volunteer experience
Give 1 example of an optional deduction and 1 required deduction found on a paystub.
Optional = insurance, retirement Required = social security, Medicare, federal withholding
What does the acronym S.M.A.R.T. stand for?
S=specific, M=measurable, A=attainable, R=realistic, T=time bound
What is the second step to creating an effective budget?
Create personalized income & expense categories
Give 2 examples of a long-term liability.
Car loan, mortgage, student loan
Debt in which the total dollar value is expected to be paid within one month or year.
current liability
What are 3 ways of “Investing in Yourself” to become more employable?
Education, part-time job, internship, extra-curricular activities, volunteering, job shadowing
Explain how the number of allowances claimed on a W-4 form will affect a person’s paycheck.
More allowances = larger paycheck; less allowances = smaller paycheck
What are steps three and four to Successful Financial Planning?
Step 3 – Identify options AND Step 4 – evaluate alternatives
What are all 5 steps to creating an effective budget?
Track income and expenses, create categories, allocate money to categories, implement & control your budget, review & revise
Describe 2 ways to increase a person’s net worth.
Add items to your assets (without adding to liabilities); pay off liabilities using income (without taking away from assets)
Money received from sources other than working
unearned income