PERSONAL FINANCE
INCOME AND CAREERS
DETERMINING A CAREER PATH
 EDUCATION AND SKILL
REQUIREMENTS
-Some jobs that may seem interesting to you
require a great deal of education and training.
Are you prepared to make that kind of time and
financial commitment? For example: Some of
you may consider a career as a medical doctor.
But are you aware that becoming a physician
requires seven years or more training, much of
which is very costly? Such a commitment can be
worthwhile, but if this doesn’t appeal to you, you
may opt for a career that require less education.
- From your list of possible careers, carefully
consider the education and/or skill requirements
necessary. Eliminate those options that require
training that exceeds what you are willing to
commit to. Like all major life decisions,
choosing a career requires cost/benefit analysis.
Is the ultimate benefit associated with a
particular job worth the cost of acquiring the skill
set? Do not focus solely on the financial costs.
Be sure to consider how the extensive training
will impact your quality of life.
- Remember that education is generally a very
good investment. Additional education may cost
more now, but it is likely to pay off in a higher
income for decades to come. Higher levels of
education are associated with very low rates
of unemployment. This type of job security can
be critical at any time in your career but is
particularly important during recessions.
 JOB AVAILABILITY
-Some people think that they would like to pursue a
glamorous career, such as acting or TV broadcasting.
But for most such careers, they are few openings
and the competition for them is fierce. In most
areas, there is limited work for people in such
professions, and the few who do succeed usually do
so after many years of struggle. If you decide to
pursue acting or another job with limited availability,
you need to factor in job availability prior to pursuing
this career option. You also need to consider what job
you could do while pursuing your career or later if
the job doesn't work out. For example, if you decide
to become an NFL or NBA player, what other skills
could you develop as you pursue this job?
-Additionally, some jobs may not be in high
demand in the region where you would like to live.
In that case, you may have to relocate. Moving
involves substantial costs and it may thank you some
time to recover that investment. While some
companies pay all or at least a portion of relocation
expenses for employees, not every company offers
this benefit. Finding a new place to live, hiring a
moving company, getting the utilities turn on, the
organizing hassles are not without cost.
 COMPENSATION
-When considering careers, most people want to
know how much money they will make and that is
what their compensation will be. While your list may
contain a number of jobs that would be a lot of fun,
many of them may not pay well. Keep in mind that
you will need a minimum level of income in order
to cover your expenses. You may also want to
increase your net worth overtime by building up your
savings, buying a home and so on. A job that does
not pay well may not allow you to cover expenses or
increase your net worth. Just as Logan considered
money when thinking about his future,
compensation should be an important
consideration of your career choice, too. Choosing
a career for money alone may not be wise but neither
is ignoring how your income may affect your life.
SOURCES OF CAREER INFORMATION
 FIELD TRIPS AND SPEAKERS
During your high school years, many of you will have
opportunities to take field trips that will help you
identify careers of interest. Your school may also
have visiting speakers who will provide valuable
information on what they do for a living. Make use
of these opportunities to investigate various career
options.
 INTERNSHIPS
One way to gain additional information about a
particular career or job is true an internship this is a
temporary, short term position designed to
provide exposure to and training in a particular
job. Often, companies will hire in turns to perform
various office tasks such as making copies or
delivering documents. While this type of work may
seem mundane, it's a good way to gain knowledge
about certain types of careers. Even an unpaid
internship can provide you with valuable experience
and enough information to know whether a
particular career interests you.
 JOB EXPERIENCE
-Think about Logan’s experience unloading trucks.
You may also have worked part time jobs that
allowed you to learn something about working for a
living. As a result of these experiences, some of you
may have eliminated certain career options and others
may have identified possible job choices. At the very
least, you may have learned some broad lessons
about what you do and do not like about a job. For
example, you may have found that you prefer moving
around to sitting at a desk or working at the
workstation. You may enjoy dealing with the public
or prefer not to. These insights can be valuable.
 CONTACTS
Make use of your network of friends. Perhaps some
of them have a relative who works in a career you
are considering. Logan learned quite a bit about his
career likes and dislikes by observing his brother
and his parents. You may be able to visit with
someone's parents or grandparents to learn first-hand
what they do for a living. Most people will be happy
to answer any questions you might have about their
jobs.
GETTING THE SKILLS YOU NEED
TRAINING PROGRAMS
For some careers, you must obtain specific
specialized training before entering the field.
Training requirements vary widely by profession. For
example some jobs you may need to earn a certificate
or receive a license. In some cases, you may be able
to receive formal training while you are working.
Education colleges and universities provide
training in the form of education leading to a
degree. This type of information can be useful in
trying to determine whether to get a degree in
something as specific as accounting or geology, or
whether to pursue a broader liberal arts degree. You
will find that many companies hire successful college
graduates of any major sins completion of the degree
signals a person's ability to stick to a task and
continue to learn. Many employers find this qualities
as important as any particular skills at least for entry
level jobs.
University reputation varies significantly and some
may have a better reputation for certain degrees.
Some jobs will require that your degree is from an
accredited or recertified program.
ACCREDITATION is an official recognition that
a school or program meets a certain is standard.
Make sure you investigate the various types of
accreditations that a university has and match those
with the job market or career field you are interested
in pursuing. That is, is the program accredited by the
organizations that future employers will require? This
accreditations are especially important in the field of
nursing, some technical areas such as automotive or
mechanical and trade areas. Learn as much as you
can about the colleges you are interested in
attending. What are their graduation rates? How
many years does it take to graduate? What percentage
of reason graduates pass their certification, if
applicable? Do firms visit the compass to recruit
employees? It is always useful to learn as much as
you can about the schools you are considering.
EXPANDING YOUR EDUCATION
Graduate degrees such as master’s degree, law
degree or doctorate degree, provide you with
additional specialized knowledge and skills that
should qualify you for a better job. However, there
are costs associated with pursuing a graduate
degree. To begin, it can cause a lot of money to get a
graduate degree. For that reason, you need to weigh
this costs against the benefits to determine whether a
graduate degree is right for you. Tuition, fees, books,
room and board and opportunity cost can add up to
the substantial amount of money. For a full-time
graduate program the opportunity cost is the loss of
income from a full-time job and the potential cause of
social and recreational time for the time it takes you
to complete the program. is it worth it? in many
cases it will be only you can make that decision.
 INTERNET JOB SEARCHES AND
In most cases, an advanced or graduate degree APPLICATION
and enhances your employability. Many positions
Many companies have moved to electronic
require a graduate degree as the minimum
applications or pick applicants from employment
qualification to apply. Sometimes it is useful to get
sites such as Monster College. Check out
your graduate degree in a different field from your
college.monsters.com to learn what jobs are in
undergraduate degree. For example, engineers often
demand and learn the process of posting your own
find it useful to get a graduate business degree as they
contact information.
move into management positions within their
engineering firms. Some of you may opt to pursue a SUMMARY
doctoral degree. You should evaluate the university
carefully since doctoral degree program reputations ✨Your career path is a choice you make. It can
vary substantially. If you hope to teach at the college change throughout your life until you retire. You will
level for example, where you get your PH.D may be need to review the education/skills needed, its
significant. Some programs may have a local or availability and the compensation expected.
regional reputation others may be no nationally and
still others may have solid international reputation. ✨ There are multiple ways to research jobs and
Pick the program that most closely aligns with careers. You may have opportunities to take field
your goals. trips are listen to speakers to gather information
about a career or you may gather information by
JOB APPLICATION PROCESS networking with family friends and others. Job
experience will also help you make decisions about
 RESUME
your career choice. The internet provides many
Many jobs will require you to provide a resume sources to help you in your career decision-making
which gives prospective employers a snapshot of process. You can go online to find out about various
your qualifications. Typically, your resume will careers or you can take a personality tests or interest
include your personal background information inventory to help you make your decision.
including education and previous work history.
✨ Remember that additional training or
Additionally, you should provide a list of your skills
education may be required for your career choice
such as computer training or language ability. You
or when changing to a different career. As you
can also choose from different styles of resumes
expand your education and training, benefits will
depending on the strength of your background. For
increase but there could also be additional costs to
example, resumes that emphasize skills rather than
you. You need to weigh the costs and benefits this
work experience may be a good choice for someone
will allow you to see if a change is worth your effort.
with a limited work history. The internet is a good
source of information about how to structure an ✨ Applying for a job may involve filling out
effective resume that best highlights your skills. applications, writing and passing a resume,
 COVER LETTER writing cover letters and using online services. It is
a process that most young people will go through
Generally, the more education and training you many times in their lives.
have, the more information is required during a
job application. For example, many professional
jobs require a cover letter, resume and multiple
interviews. The length of some interviews can be
several days and require you to travel out of state the
specific site.
 PERSONAL FINANCE

SPENDING AND CREDIT

CREDIT •The amount of credit used by consumers to purchase

•Money that a lender makes available to a borrower
with the understanding that the borrower will repay
the money in the future.
•An arrangement to receive cash, goods or services
now and pay for them in the future.
non-investment goods or services that are consumed
and whose value depreciates quickly.
•The use of credit for personal needs by individuals
and families.
USES AND MISUSES OF CREDIT

•When using a credit card to charge purchases, you

must usually pay a finance charge.

FINANCE CHARGES

• The total amount a purchaser must pay for the use

of credit (interest charges and fees)

3 FACTORS AFFECT YOUR FINANCE

CHARGE:

Amount of credit used

the more you charge, the more interest you pay.

Annual Percentage Rate (APR)

The higher the interest rate, the more finance CREDIT CARDS
charges you pay
•Defined as “a small plastic card issued by a bank
Length of Repayment Time business, etc. allowing the holder to purchase goods
The more time you take to repay, the more interest or services on credit”.
you pay •It allows the cardholder to pay for goods and
INTEREST services based on the holder’s promise to pay for
them.
Fees charged by lender on borrowed money.
TYPES OF CREDIT CARD
Credit is money that a lender makes available to a
borrower with the understanding that the borrower  Standard Credit Cards
will repay the money in the future.  Balanced Credit Card
 Rewards Credit Cards
Usually, borrowers also agree to pay lenders  Charge Cards
something called interest. Interest is the price one  Secured Credit Cards
pays for the right to use another party’s money and
stated as a percentage of the amount borrowed.
Think of interest as a rental fee paid for using
someone else’s money.

Understanding how credit works—for you and

against you—can help you build a strong financial
plan.

CONSUMER CREDIT

•Defined as “money, goods or services provided to

an individual in lieu of payment
   Build Positive Credit
 Purchase Protection

DISADVANTAGES

 Business Credit Cards

ADVANTAGES

 Convenience
 Record Keeping
 Instant Cash
  Overuse
 High Cost fees
 Unexpected Fees
 Deepening your debt
 Teaser rates
DISADVANTAGES OF CREDIT
 Temptation to overspend.
 Failure to repay loan may result in loss of
income, valuable property and your good
reputation.
 Misuse of credit can create serious long-
term financial problems, damage to family
relationships, and a slowing of progress
toward financial goals.
 It does not increase total purchasing power.
 Credit costs money.
DEBIT CARDS
A card issued by a bank allowing the
holder to transfer money electronically
to another bank account when making a
purchase
A debit card is a plastic payment card
that provides the cardholder electronics
access to their bank account at a
financial institution.
Debit cards usually also allow for instant
withdrawal of cash, acting as the ATM
card for withdrawing cash.
Debit cards give you a fast, easy and
secure way to make a purchase or
withdraw cash.
When you use your debit card to buy
something or withdraw money from an
ATM, the transaction usually takes three
important steps:
a) The transaction is forwarded
through what is called a
payment processor.
b) The processor routes the
transaction to an ATM/debit
network.
c) The network then send the
transaction to your bank or
credit union. Your financial
institution verifies the
availability of funds and then
approves or declines the
transaction.
When a purchase is made, the
cardholder agrees to pay the card issuer.
The cardholder indicates consent to pay
by signing a receipt with a record of the
card details and indicating the amount to
be paid or by entering a personal
identification number (PIN).
Electronic verifications system allow
merchants to verify in a few seconds
that the card is valid and the cardholder
has sufficient credit to cover the
purchase, allowing the verification to
happen at time of purchase. The
verification is performed using a credit
card payment terminal or point-of-
sale (POS) system with a
communications link to merchant’s
acquiring bank. Date from the card is
obtained from a magnetic stripe or chip
on the card; the latter system is called
Chip and PIN in the United Kingdom
and Ireland and is implemented in EMV
card.
Each month, the cardholder is sent a
statement indicating the purchases made
with the card, any outstanding fees and
the total amount owed.
ADVANTAGES
 Prepaid Card
 Alternative to cash
 Immediate transfer of funds
 Instant withdrawal of cash
 Control limit
DISADVANTAGE
 Record keeping is mandatory
 Convenience is not always guaranteed
 Hidden fees are everywhere
 Internet scams are commonplace
 Safety
DIFFERENCE OF CREDIT AND DEBIT
CARD
SOURCE OF FUNDS
Credit Card- Borrowing money from a bank or ● Are you prepared to make this
financial institution. trade-off?
Debit Card- Money that you have in your bank
account. CREDIT RATING

BUILDING AND MAINTAINING YOUR CREDIT

LINE OF CREDIT
Credit Card- Carries a line of credit.
Debit Card- No credit.
INTEREST
Credit Card- It is applicable if complete payments
are not made within due date.
Debit Card- No interest is applicable as the funds are
from your account.
LIMIT
Credit Card- Depends on the credit limit assigned by
the bank which can be increased/decreased.
Debit Card- Depends on the funds in your account
RATING.
 A good credit rating is a valuable asset that
should be nurtured and protected.
 Limit your borrowing to your capacity to
repay.
 Live up to the terms of contracts.
 Check to see what is in your credit report as
most creditors in considering loan
applications.
BUILDING AND MAINTAINING YOUR CREDIT
WHAT IS IN YOUR FILES?
The credit bureau file contains your name, address,

CONNECTED TO
Need not be connected to any bank account.
Debit Card- Current Account; savings Account

FEES
Credit Card- May or may not be applicable,
depending on the card type.
Debit Card- May or may not be applicable,
depending on the card type.

BILLS/ STATEMENTS
Credit Card These are generated as per monthly
usage.
Debit Card- Frequency depends on the savings
account. Social Security number and birth date. It may also
include the following information:

 Your employer, position and income.

MEASURING YOUR CREDIT
CAPACITY
Assess your credit capacity and build your credit
rating.
CAN YOU AFFORD A LOAN?
 Ask yourself if you can meet all essential
expenses and still afford the monthly loan
payments.
 Ask yourself what do you plan to give up in
order to make the monthly payment?
 Your former address.
 Your former employer.
 Your spouse’s name, Social Security
number, employer and income.
 Whether you own you home, rent or board.
 Checks returned for insufficient funds.
APPLYING FOR CREDIT
WHAT CREDITORS LOOK FOR: 5C’S
 Character- Do you pay bills on time?
 Capacity- Can you repay the loan?
 Capital- What are your assets and net
worth?
 Collateral- What property do you have to
pledge that the lender can repossess if you
default on the loan?
 Conditions- What economic conditions
could affect your ability to repay the loan?

SUPERVISION
The Credit Information Corporation (CIC) is
supervised by the Governance Commission for
GOCCs (GCG) that regularly reviews its
policies, operations and major decisions. The
GCG was created under the Republic Act 10149,
otherwise known as the GOCC Governance Act
of 2011.
MANDATE
Under Republic Act No. 9510, the Credit
Information Corporation has the powers and
functions to receive and consolidate basic credit
data, to act as a central registry or central
repository of credit information, and to provide
access to reliable, standardized information on
credit history and financial condition of
borrowers.
VISION
We shall be the only and sustainable source of
reliable comprehensive timely and
internationally accepted information in the
country
MISSION
We faithfully implement the Credit Information
System Act (CISA) of 2008.
Pursuant to this mandate, we efficiently and
effectively receive, consolidate and make
available reliable and useful positive and
negative credit information at least cost.
We do this through a secured centralized credit
information system using innovative
technologies managed by highly competent and
motivated human resources.
By doing so, we strengthen decision-making and
risk management in the Philippines credit
ecosystem, reduce the overall cost of credit and
reliance on collateral, protect consumer rights
and contribute to fair and inclusive credit access
to all Filipinos.
CORE VALUES
Customer Centricity
Results-Driven
Integrity
Solution-Oriented
Precision
Innovation
Excellence
Solidarity
Accredited Credit Bureaus / Special Accessing
Entities (SAEs)
As of date, only CIBI Information Inc. issues
consumer credit report with credit score.
WAYS TO PROTECT YOUR IDENTITY
How does identity theft happen? Any common
ways?
 Phishing, skimming and hacking seem
to be some of the more prevalent
sources for identity theft.
 If it sounds too good to be true, it
probably is a scam. The email offering a
“free” security scan for instance.
 It’s important to think about digital and
physical risks to your identity.
WHAT ARE SIGNS YOU MIGHT BE A
VICTIM OF IDENTITY THEFT?
Items on your credit reports that aren’t
yours. Ending up with zero balances in
your bank accounts.
One place you can spot identity theft is
your credit report. That’s one reason it’s
so important to check it often.
HOW CAN WE DO A BETTER JOB OF
PROTECTING OUR PERSONAL
INFORMATION?
 Do not use the same login or password
for your financial institution on any
other website or software.
 Shred any important documents before
disposing of them. Educate yourself on
how to avoid phishing scams.
 It’s important to take the lead in
protecting your personal information.
Check your credit reports and statements
regularly.
 Protect yourself by changing your
passwords every 30 days and do not
repeat passwords from before.
QUIZ FOR GROUP 1-3:
1. It is legal for any building and lending organization
to make a loan on land that is solely fit for use as a
theater, public hall, church, convent, school, club,
hotel, garage, or public building.
T or F-A:
2. The policy limit is the maximum amount an insurer
will pay under a policy for a covered loss. Higher
limits carry lower premiums.
A:
3. A building and loan association is organized in the
form of a _______________.
A:
4. It is a state-chartered financial organization that
makes use of customer subscriptions and deposits to
invest in the members residential mortgage loans.
A:
5. The greatest benefits include the ability to cover
your funeral expenses and provide for those you
leave behind.
A:
6. It is a trust or entity that collects capital from
various investors and invests the pooled money in a
range of financial securities.
A:
7. These are investment companies that invest in a
fixed portfolio that consists of bonds and stocks
A:
8. Investment companies must register to operate as
such with the Securities and Exchange Commission
by filing a registration statement in the form
prescribed by the SEC.
A:
9. Investment companies must be organized in the
form of a stock corporation with the minimum paid-
in capital is P 50M.
A:
10. The capital stock of a building and loan
association is to be divided into shares of the matured
or par value of P200 each.
A:
11. Mutual Funds are considered as closed-end
companies. They can issue an unlimited number of
shares to anyone who wishes to invest in the fund.
A:
12. It is guided by a spirit of mutual self-help were
participants pooled their money and in turn became
eligible to receive dividends and take out a mortgage.
A:
13. It is a contract in which an insurer indemnifies
another against losses from specific contingencies or
perils.
A:
14. These investment management firms have a limit
on the number of shares that are traded in the open
market.
A:
15. These are used to hedge against the risk of
financial losses, both big and small, that may result
from damage to the insured or her property, or from
liability for damage or injury caused to a third party.
A:
16. This insurance will cover the expenses and help
guard you against any litigation that might result
from the accident.
A:
17. The insurance premium is determined by the
insurer based on your or your business's risk profile,
which may include creditworthiness.
A:
18.It is the enabling Law that governs the creation,
regulation, licensing and monitoring of Mutual Fund
Industry in the Philippines.
A:
19. The first B&Ls were structured as terminating or
closed-ended plans that expired when all of the loans
it made were repaid.
A:

20. Whole life can be used as an income tool as well

as an insurance instrument while Term life is a policy
that covers you for a set amount of time.

A: