Career Impact on Career Impact on IncomeIncome

Questions to AnswerQuestions to Answer

How does the career you How does the career you choose affect your income?choose affect your income?

How do education and How do education and training affect your salary?training affect your salary?

What is an entrepreneur?What is an entrepreneur?

Occupational Occupational NecessitiesNecessities

Class ActivityClass Activity Let’s imagine for a while that the Let’s imagine for a while that the

world had to start all over. Nothing world had to start all over. Nothing exists but water, land, trees, animals exists but water, land, trees, animals and 50 people whose ages range and 50 people whose ages range from 10 to 50. Trying to restart the from 10 to 50. Trying to restart the world, your group of 50 people has world, your group of 50 people has put you in charge of selecting the put you in charge of selecting the seven most necessary occupations to seven most necessary occupations to get the world going again. No get the world going again. No training for any of these occupations training for any of these occupations is necessary. List the seven is necessary. List the seven occupations and the reasons why you occupations and the reasons why you would select each one.would select each one.

Earning PowerEarning Power

Earning power is the ability to Earning power is the ability to earn money in exchange for work. earn money in exchange for work. How much you earn depends on How much you earn depends on the value of your skills in the the value of your skills in the marketplace.marketplace.

An individual’s value as a worker – An individual’s value as a worker – the wage or salary received for a the wage or salary received for a specific job – is related to the skill specific job – is related to the skill level and education of the worker, level and education of the worker, the demand for that work in the demand for that work in society, and the availability of society, and the availability of qualified workers.qualified workers.

Earning PowerEarning Power

Generally, in our society, Generally, in our society, people with higher education people with higher education and more skills earn more and more skills earn more money on the job than those money on the job than those with less education and with less education and fewer skills.fewer skills.

TRY IT!TRY IT!Find the answers to the Find the answers to the following following Earning PowerEarning Power

problem.problem. Steve earns $6.50 an hour. He Steve earns $6.50 an hour. He

worked 25 hours in the previous worked 25 hours in the previous one week pay period. If Steve’s one week pay period. If Steve’s employer withholds 10% of each employer withholds 10% of each of Steve’s paychecks to pay of Steve’s paychecks to pay Steve’s income tax. How much Steve’s income tax. How much will Steve take home in this will Steve take home in this week’s paycheck?week’s paycheck?

HINTS:

Calculate how much Steve will earn each week by multiplying his hourly wage ($6.50) by the number of hours he works in one week (25).

Now that you know how much Steve earns in 1 week, one way to calculate how much is withheld from his paycheck each week is to multiply his weekly wage by 10%.

Now calculate how much Steve will take home by subtracting the amount withheld from his weekly wage.

Earning PowerEarning Power

Jill has a new job at a car Jill has a new job at a car wash making $7.20 an hour. wash making $7.20 an hour. She worked 42 hours this She worked 42 hours this week and makes time and a week and makes time and a half for hours over 40. Her half for hours over 40. Her withholdings are 10%.withholdings are 10%.

How much did Jill make?How much did Jill make?

Key Employee SkillsKey Employee Skills

EntrepreneurshipEntrepreneurship

EntrepreneurEntrepreneur Willing to take risksWilling to take risks A person who creates a A person who creates a

business from scratch.business from scratch. Self employedSelf employed Strong sense of Strong sense of

disciplinediscipline Be your own bossBe your own boss Beat the competitionBeat the competition

EntrepreneurshipEntrepreneurship

RISKSRISKS No guaranteesNo guarantees No regular No regular

paycheckpaycheck No bossNo boss Long hoursLong hours Assume debt Assume debt

of businessof business

REWARDSREWARDS Be your own Be your own

bossboss Keep profitsKeep profits ControlControl SatisfactionSatisfaction Pursue talent Pursue talent

and creativityand creativity