1. Education & skills, economy conditions, supply and demand, plus the value of the work to society are factors that influence potential income.
2. Opportunity Cost is the cost of something in terms of an opportunity forgone (and the benefits that could be received from that opportunity), or the most valuable forgone alternative , i.e. the second best alternative.
Or the cost of a missed opportunity.

Pay check
Loans
Inheritance
Social security
Free Lunch or other government programs
Welfare, Food Stamps
Alimony
Child Support
Interest
Gift, Charity, Church
Part time job
Self Employment
Grants, Scholarships
Allowance
Found Money, Yard sales,
Sale possession.
Sources of Income????
Source of
Income

Earning Power: A persons ability to earn money.
Analyze factors that affect income.
1. Income vs. Education o Lack of education limits your career choice and earning power

Educational
Attainment
Not high school graduate
High school graduate including GED
Some college no degree
Associate degree
Bachelor’s degree
Master’s degree
Doctorate degree
Professional degree
U.S. Average
Income
(2001)
$16,234
$24,885
$28,264
$33,644
$48,892
$63,205
$86,036
$96,779
Percentage of
U.S.
Population
(2000)
19.6%
28.6%
21.0%
6.3%
15.5%
8.9%
Percentage of
Utah
Population
(2000)
12.3%
24.6%
29.1%
7.9%
17.9%
8.3%

Average earnings of year-round, full-time workers age 25 to 34 years old
Average Highest Level of Education
Annual Earnings
Less than 9th grade
9th to 12th grade (no diploma)
High school graduate
Some college, no degree
Associate degree (2yr degree)
Bachelor’s degree or higher
$15,875
$20,915
$25,655
$29,310
$31,215
$48,190

Largest Numerical Increases in Occupations
Fastest Growing Occupations Education/Training Category

Veterinarians

Pharmacists

Chiropractors

Optometrists

Lawyers

Computer and information scientists, research

Medical scientists

Postsecondary teachers

Biological scientists

Astronomers and physicists

Audiologists

Speech-language pathologists

Mental health and substance abuse social workers

Substance abuse and behavioral disorder counselors

Physical therapists
 Computer and information systems managers
 Public relations managers
 Advertising and promotions managers

Sales managers

Medical and health services managers

Computer software engineers, applications

Computer software engineers, systems software

Network and computer systems administrators

Network systems and data communications analysts

Database administrators
Professional Degree
Doctorate Degree
Master’s Degree
Bachelor’s Degree or higher
[plus work experience]
Bachelor’s Degree
Largest Numerical Increases in
Occupations

Lawyers

Physicians and surgeons

Pharmacists

Clergy

Veterinarians

Postsecondary teachers

Biological scientists

Computer and information scientists, research

Medical scientists

Astronomers and physicists

Educational, vocational, and school counselors

Physical therapists

Speech-language pathologists

Psychologists

Mental health and substance abuse social workers
 General and operations managers
 Computer and information systems managers
 Management analysts

Financial managers

Sales managers

Computer software engineers, applications

Computer software engineers, systems analysts

Elementary school teachers, except special education

Network and computer systems administrators

Fastest Growing Occupations

Computer support specialists

Medical records and health information technicians

Physical therapy assistants

Occupational therapist assistants

Veterinary technologists and technicians

Desktop publishers

Fitness trainers and aerobics instructors

Surgical technologists

Respiratory therapy technicians

Gaming dealers

First-line supervisors/managers of correctional officers

Aircraft cargo handling supervisors

First-line supervisors/managers of protective service workers, except police, fire, and corrections

Private detectives and investigators

Transportation, storage, and distribution managers

Telecommunications line installers and repairers

Actors

Recreational vehicle service technicians

Interpreters and translators

Police and sheriff’s patrol officers

Medical assistants

Social and human service assistants

Dental assistants

Pharmacy technicians

Ambulance drivers and attendants, except emergency medical technicians
 Personal and home care aides
 Home health aides
 Physical therapist aides
 Occupational therapist aides
 Veterinary assistants and laboratory animal caretakers
Education/Training Category
Associate’s Degree
Postsecondary Vocational Award
Work Experience in Related Occupation
Long Term On-the-Job Training [more than 12 months]
Moderate Term On-the-Job Training
[1 to 12 months]
Largest Numerical Increases in Occupations

Registered nurses

Computer support specialists

Medical records and health information technicians

Paralegals and legal assistants

Dental hygienists

Automotive service technicians and mechanics

Licensed practical and licensed vocational nurses

Welders, cutters, solders, and braziers

Hairdressers, hairstylists, and cosmetologists

Fitness trainers and aerobics instructors

First-line supervisors/managers of retail sales workers

First-line supervisors/managers of construction trades and extraction workers

First-line supervisors/managers of office and administrative support workers

First-line supervisors/managers of food preparation and serving workers

First-line supervisors/managers of mechanics, installers, and repairers

Cooks, restaurant

Police and sheriff’s patrol officers

Electricians

Carpenters

Maintenance and repair workers, general

Customer service representatives

Truck-drivers, heavy and tractor-trailer

Medical assistants

Executive secretaries and administrative assistants

Social and human service assistants
Short Term On-the-Job Training [0 to 1 month]  Combined food preparation and serving workers, including fast food
 Retail salespersons
 Cashiers, except gaming
 Office clerks, general

Jobs requiring an associate’s degree are expected to grow 32% during 2000-2010.

Healthcare occupations account for 10 of the 20 fastest growing occupations, while computer occupations account for 5 out of 20 in the economy. These 15 computer and healthcare occupations combined will add more than 1.5 million new jobs

The occupations listed will account for approximately one-third of all new jobs from 2002 – 2012. This is over eight million jobs combined.

Declining occupational employment stems from declining industry employment, technological advancements, changes in business practices, and other factors. Increased productivity and farm consolidations are expected to account for a decline of 238,000 farmers and ranchers .

Earning Power: A persons ability to earn money.
1. Income vs. Education
2. Workers Skills
• competent work,
• produce a good product,
• ability to operate equipment,
• implement knowledge and abilities

Earning Power: A persons ability to earn money.
1. Income vs. Education
2. Workers Skills
3. Conditions of the economy,
• War,
• terror,
• unemployment,
• scarcity,
• acts of God

Earning Power: A persons ability to earn money.
1. Income vs. Education
2. Workers Skills
3. Conditions of the economy
4. Supply and Demand
• Scarcity and Abundance
• World Trade

Earning Power: A persons ability to earn money.
1. Income vs. Education
2. Workers Skills
3. Conditions of the economy
4. Supply and Demand
5. Value of the work to society: How important is your profession or skill.
• If you were to be on a deserted island for
15 years, what occupations would you like the four people with you, to have?

• What are the educational requirements?

• Income Potential
• What skills will I need?
– What will the cost and benefits of developing new skills be?
• Time, energy, and money

• Study what interests you, and learn how that applies to life/careers.
• Look at different jobs options, and figure out which job best fits you (intellectually, physically, and financially)
• Once you figure out a career path you want to take, be aggressive in following it.
Don’t let opportunity pass you by.

• How does this relate to Opportunity Cost?
– Making the effort right now for a good career and education will cost you time, energy, and money, but in the long run it will pay off and you will have more time and money. Hopefully that will give you energy to enjoy it.
• Choosing one option may mean giving up altogether another goal.
• It’s a trade off!
• Remember: Invest in Yourself, it is Well Worth the Effort!!!

Form of
Employment
Define Advantages Disadvantages
Employee
Self-
Employed
Entrepreneur

Form of
Employment
Define Advantages Disadvantages
Employee Worker who is hired to do a job.
Little risk, not responsible for over-head costs.
Expectations
Time Clocks
Make money for boss.
Self-
Employed
One who operates a business, profession, or a consultant.
Entrepreneur Practice of starting new businesses
You are the boss set your hours and pay. Receive the benefits of profit-making.
Responsible for over-head costs, taxes, employees and keeping business going.
You’re the boss motivating, receive the benefits of profitmaking.
High risk.
Must be motivated.
Stressful hard on relationships.

Cost of Living for Selected U.S. Cities
Benefit Option Description
Base salary
Fringe benefits, also known as employee benefits
Opportunities for advancement and work incentives.
Employer provided services
Additional perks
Location and environment

Cost of Living for Selected U.S. Cities
Benefit Option
Base salary
Fringe benefits, also known as employee benefits
Description
Dollar amount a person will receive in his/her monthly paycheck before taxes.
Additional compensation offered by a company beyond an individual’s wage, salary, commissions, or other cash payments.
Paid sick time, holidays and vacations, bonuses, health insurance, life insurance, workman’s compensation, retirement, contributions, etc.
Opportunities for advancement and work incentives.
Evaluate if a person can easily advance within the company and earn more money.
Employer provided services
Additional perks
Gym memberships, flexible hours, merchandise discounts, child care, etc.
Relocation allowances, company car, repayment of education loans or expenses, stock options, etc.
Location and environment
Is the job in a desired community? Are the time and resources available to travel long distances to get to work?
Does the community have a low crime rate, good schools and a desired climate?

#1 – SARA’S TWO JOBS:
􀂃 $35,000.00, Reno, NV, 105.1 cost of living index
􀂃 $40,000.00, Anchorage, AK, 123.1 cost of living index
Index city 2
Salary in city 1 x -----------------------= Equivalent salary in city 2
Index city 1
123.1
$35,000.00 in Reno x -------------- = Equivalent salary in Anchorage
105.1
$35,000.00 x 1.17 = ?
$40,950.00 = Equivalent salary in Anchorage

#2 – JOE’S TWO JOBS:
􀂃 $24,000.00, Denver, CO, 102.9 cost of living index
􀂃 $32,000.00, Seattle, WA, 148.2 cost of living index
Index city 2
Salary in city 1 x -----------------------= Equivalent salary in city 2
Index city 1
148.2
$24,000.00 in Denver x -------------------- = Equivalent salary in Seattle
102.9
$24,000.00 x 1.44 = ?
$34,560.00 = Equivalent salary in Seattle

• Refer to hand out