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This chapter continues with the theme of earning an income . Gen Z’rs can expect to spend about 50 years in the workforce before retiring. The quality of your life in those years, the kind of work you’ll do, and the amount of money you’ll earn is important. As you head toward college, you will begin making decisions that will impact your earnings potential, such as college or career tech ed? Career or job? Salary or hourly? What will I study in college? What is the highest level of education I will aim for? High school, college, or grad school? One of the benefits of financial literacy is that it empowers you to make informed decisions about these issues. I. Decision: Job or Career? Job. No matter what, you will have to spend much of your life doing something to earn an income! Choosing what you’ll do is a big decision. The first question you need to ask yourself is: Will I have a job or a career? The difference between a job and a career is somewhat a matter of attitude and perception. If you think of your employment as a day-to-day obligation you schlep through just to earn a paycheck, and your relationship with work and your employer as impersonal and static, you’ll probably have just a job. Some people are perfectly satisfied with this arrangement, but before you decide that it’s what you want, be aware that this approach to earning an income is essentially a lifestyle choice that comes with limitations : Minimum wage. Jobs are often minimum wage and paid by the hour. That means employees are on the clock — they “punch in” and “punch out”. Minimum wage is the lowest hourly wage an employer can legally pay an employee as set by the Fair Labor Standards Act . It is currently $7.25, although about half the states require employers to pay a slightly higher rate. It can be very difficult to support a family or afford anything more than the very basic necessities of life when earning the minimum wage. Limited advancement. Many low-paying jobs provide little room for advancement, meaning that the position is static, with not much opportunity to rise to a higher level of responsibility and pay. Limited benefits. Hourly wage jobs rarely come with employee benefits such as retirement and healthcare insurance. (Advise students that they will learn more about employee benefits in the next chapter.) Limited job security. Low paying jobs are often the first casualty of an economic recession or industry slow-down. In times of economic stress, low paid workers with limited skills are laid off more often, are more likely to have their hours cut, and can have trouble finding a new job. Limited social mobility. With a day-to-day, just-go-to-work-to-earn-a-paycheck job, you are less likely to enjoy social mobility which is the ability to move up in socioeconomic class and increase your wealth for such things as home-ownership, a car, a college education for your kids, vacations, travel, and other quality of life goodies. PRODUCT PREVIEW
Career! If you aspire to something greater, such as advancing your position and earnings, a better quality of life, and gaining a level of prestige within a field or profession, you need to plan and prepare for a career. Sometimes a person can build their career in one company that they stay with for many years. These days, however, a person building a career often makes several
“A career is a life journey which must be carefully plotted, reviewed and adjusted throughout a lifetime.”
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THE 21st CENTURY STUDENT’S GUIDE TO FINANCIAL LITERACY
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