Career Planning and Financial Literacy - CE. 14

Flashcards covering key concepts related to career planning and financial literacy.

Work Ethic

A broad term for the attitudes and behaviors that show one’s desire to do a job well and to take pride in a job well done. Employers normally try to find and promote employees who have a strong work ethic.

Self-Assessment

The process of “looking at oneself in the mirror” and examining one’s talents, skills and aspirations. It helps individuals identify strengths and areas for improvement in their personal and professional development.

Human Capital

The skills, knowledge, and experience possessed by an individual that can be applied to the workforce.

Fiscal Responsibility

The obligation to manage financial resources wisely, ensuring that debt is minimized and financial commitments are met. It involves making informed financial decisions and planning for future expenses.

Ways to be Fiscally Responsible

• Stick to a budget

• Save and invest

• Have insurance

• Make careful spending decisions

• Use credit wisely

• Regularly review financial goals

Warranty

A guarantee provided by a manufacturer or seller to repair or replace a product if necessary within a specified period.

Technological Advancements

Improvements and innovations in technology that can affect job requirements and create new job opportunities.

Budgeting

The process of creating a plan to manage income and expenses.

Vocational Training

A type of education focused on equipping individuals with specific skills for a trade or profession, often including hands-on experience and targeted instruction. Examples: carpentry, hair styling, auto repair, and plumbing.

Career Planning

The process of setting goals and outlining steps to achieve a desired professional path.

A strong work ethic is important to career success.

TRUE

Employees hire and promote employees with a strong work ethic.

TRUE

People with a strong work ethic are not respected by their co-workers.

FALSE

On average, people with higher education and skills making the higher incomes.

TRUE

Changes in technology do not influence the abilities, skills, and education needed in the workforce.

FALSE

Now and into the future, employers will be looking for individuals who have been updating their skills to keep pace with all new technological advancements.

TRUE

Career planning begins with -

Self-Assessment

A good spending decision when making the purchase of a big item like a car or washing machine would be to buy the warranty that goes with it.

TRUE

Globalization has led to increased competition between countries, and U.S. workers have opportunities to work for companies based in other countries.

TRUE

Debit cards, Federal Reserve Notes, checks, and coins are all forms of -

money (currency) used for transactions.

Spending

Trading money in exchange for goods or services.

Budget

A financial plan that outlines expected income and expenses over a specific period.

Investing

The act of allocating resources, usually money, into assets or ventures with the expectation of generating a profit or income over time. It often involves taking calculated risks to achieve long-term financial growth.

Income

The money received, typically on a regular basis, for work, services, or from investments. It is essential for covering expenses and contributing to savings.

Credit

The ability to borrow money or access goods or services with the understanding that payment will be made later. Credit is evaluated based on the borrower's creditworthiness.

Savings

The portion of income that is not spent and set aside for future use, often in a savings account. It serves as a financial cushion for emergencies, large purchases, or future investments.

A credit card does not charge interest on a purchase, while a debit card does charge interest on a purchase.

FALSE

Interest

The cost of borrowing money, usually expressed as a percentage of the amount borrowed, paid over a specified period.

Principal

The original sum of money borrowed, on which interest is paid.

Loan

A sum of money that is borrowed and expected to be paid back with interest over a specified period.

When you take out a bank loan or auto loan, you have to pay back the entire amount of the loan plus interest.

TRUE