BA107_D2 Personal Finance Week 2 DQ1

In financial planning, career planning is an important topic. Why do you think it is important to understand the financial aspects of career planning?

There are many factors associated with career planning. It is best to assess your current situation in order to move forward in the decision making process. Sitting down to write out a career plan; similar to writing a financial plan, can prove to be beneficial. S.W.O.T. (strengths, weaknesses, opportunities and threats) is a guide you can use to effectively plan how you want to plan your career.

Career planning affects your financial position in life, which is why is important to understand the financial aspects associated with career planning. A person must weigh the option to be directly trained for a career through some type of vocational or technical college versus going to a traditional college and earning a bachelor’s degree. There is cost associated with both of these decision. There is time value of money associated with choosing what type of training or education to receive. Some schools require you to pay up front; while others offer financial assistance and/or loans. Therefore knowing your career path ahead of time will help you determine if you wants to borrow money that you will have to pay back with the earnings from your future career. Also how far you go in college and what type of degree you obtain will determine your future career earning potential.

Other factors include how to balance work with your personal life. Will your career provide you with enough income to meet your basic needs? Will it pay for childcare services for your children in order to allow you to work outside of the home? How far of a commute will you endure to go back and forth to work daily as well as gas costs, car maintenance, etc? Also the type of wardrobe you will need in order to meet the expectations of your work environment is important as well. Ultimately, you will have to choose a career that will exceed the costs of the life you have and the life you want which is why financial aspect of career panning is so crucial. Therefore, it is one of the most important decisions you will make for your life which is why it requires planning.