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Comparing Job Offers PowerPoint Presentation

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Comparing Job Offers PowerPoint Presentation

  1. 1. Comparing Job Offers 1.1.3 Take Charge of Your FinancesFamily Economics and Financial Education
  2. 2. Supply and Demand• The availability of jobs and the rate of pay is dependent upon the economic concept of supply and demand. – Supply – the relationship of prices to the quantities of a good or service that sellers are willing to sell at any given point in time. – Demand – the relationship between prices and the corresponding quantities of a good or service individuals are willing to purchase at any given point in time. © Family Economics & Financial Education – Revised May 2009 – Career Development Unit – Comparing Job Offers – Slide 2 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
  3. 3. Congratulations!• Sara just graduated from college with a teaching degree and received two job offers. Which is the best deal? © Family Economics & Financial Education – Revised May 2009 – Career Development Unit – Comparing Job Offers – Slide 3 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
  4. 4. Which is the better deal?A. Job Offer 1 – $35,000.00 in Reno, NVB. Job Offer 2 – $40,000.00 in Anchorage, AKC. Not enough information to decide Which option is best? © Family Economics & Financial Education – Revised May 2009 – Career Development Unit – Comparing Job Offers – Slide 4 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
  5. 5. Cost of Living• Cost of living – includes housing, food, transportation, and other everyday expenses. –Rural communities often have a lower cost of living than urban communities.• Index form – rates communities on a scale of 100.0 and gives an average cost community a rating of 100.0. –A lower index means a lower cost of living. –A higher index means a higher cost of living. © Family Economics & Financial Education – Revised May 2009 – Career Development Unit – Comparing Job Offers – Slide 5 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
  6. 6. Comparing Job Offers • In groups of 3-4 participants brainstorm examples for each of the following categories:Base Salary Fringe Benefits Opportunity Additional perks Location andDollar amount a •Paid sick time for Relocation allowances Environmentperson will •Holidays and Advancement Company car •Commute timereceive in his/her vacation time & Other Work Repayment of •Affordablemonthly paycheck •Bonuses Incentives education loans housingbefore taxes. •Health and life •Raised based Stock options •Low crime rateBased upon insurance on performance Gym membership •Good schoolssupply and •Workman’s •Guaranteed Flexible hours •Desireddemand compensation pay raise based Merchandise discounts climate •Retirement on longevity Child care contributions Telecommuting © Family Economics & Financial Education – Revised May 2009 – Career Development Unit – Comparing Job Offers – Slide 6 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
  7. 7. Cost of Living Equation Cost of Living Index of City 2 Salary in city 1 x = Equivalent Salary in city 2 Cost of Living Index of City 1• Round dollar amounts to two decimal places © Family Economics & Financial Education – Revised May 2009 – Career Development Unit – Comparing Job Offers – Slide 7 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
  8. 8. Cost of Living Equation• In order to compare the cost of living in two cities always follow these three steps: – Step 1: Assign each cities numbers. One city will be assigned the number one and the other the number two. – Step 2: Provide the corresponding salaries and index amounts. – Step 3: Complete the math and indicate which city is a better offer and why. © Family Economics & Financial Education – Revised May 2009 – Career Development Unit – Comparing Job Offers – Slide 8 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
  9. 9. Sara’s Job Offers• Job Offer 1 – Reno, NV – $35,000.00 salary – 105.1 cost of living index• Job Offer 2 – Anchorage, AK – $40,000.00 salary – 123.1 cost of living index © Family Economics & Financial Education – Revised May 2009 – Career Development Unit – Comparing Job Offers – Slide 9 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
  10. 10. Sara’s Cost of Living Equations $35,000.00 in Reno x 123.1 = Equivalent Salary in Anchorage 105.1 Option 1 or Option 2$40,000.00 in Anchorage x 105.1 = Equivalent Salary in Reno 123.1 © Family Economics & Financial Education – Revised May 2009 – Career Development Unit – Comparing Job Offers – Slide 10 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
  11. 11. Sara’s Cost of Living Equations $35,000.00 x 1.1712654 = $40,994.29 = Equivalent salary in Anchorage Option 1 or Option 2 $40,000.00 x .8537774 = $34,151.35 = Equivalent salary in Reno © Family Economics & Financial Education – Revised May 2009 – Career Development Unit – Comparing Job Offers – Slide 11 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
  12. 12. Sara’s Job OutcomeJob Offer 1 Job Offer 2$ 35,000.00 in Reno, NV $40,994.29 in Anchorage, AK• A person earning $35,000.00 in Reno must earn $40,994.29 in Anchorage to have the same spending power. – Or• A person earning $40,000.00 in Anchorage must earn $34,151.35 in Reno to have the same spending power.• Therefore, the salary offer in Reno is better by $994.29 ($40,994.29 - $40,000.00). © Family Economics & Financial Education – Revised May 2009 – Career Development Unit – Comparing Job Offers – Slide 12 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
  13. 13. Joe’s Offers• Job Offer 1- Denver, CO – $24,000.00 salary – 102.9 cost of living index• Job Offer 2 - Seattle, WA – $32,000.00 salary – 148.2 cost of living index © Family Economics & Financial Education – Revised May 2009 – Career Development Unit – Comparing Job Offers – Slide 13Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
  14. 14. Cost of Living Equation Cost of Living Index of City 2Salary in city 1 x = Equivalent Salary in city 2 Cost of Living Index of City 1 •Round dollar amounts to two decimal places © Family Economics & Financial Education – Revised May 2009 – Career Development Unit – Comparing Job Offers – Slide 14Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
  15. 15. Joe’s Cost of Living Equations 148.2 = Equivalent salary in Seattle $24,000.00 in Denver x 102.9 Option 1 or Option 2$32,000.00 in Seattle x 102.9 = Equivalent salary in Denver 148.2 © Family Economics & Financial Education – Revised May 2009 – Career Development Unit – Comparing Job Offers – Slide 15 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
  16. 16. Joe’s Cost of Living Equations $24,000.00 x 1.4402332 = $34,565.60 = Equivalent salary in Seattle Option 1 or Option 2 $32,000.00 x .6943319 = $22,218.62 = Equivalent salary in Denver © Family Economics & Financial Education – Revised May 2009 – Career Development Unit – Comparing Job Offers – Slide 16Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
  17. 17. Joe’s Job OutcomeJob Offer 1 Job Offer 2$24,000.00 in Denver, CO $34,565.60 in Seattle, WA• A person earning $24,000.00 in Denver must earn $34,565.60 in Seattle to have the same spending power. – Or• A person earning $32,000.00 in Seattle must earn $22,218.62 in Denver to have the same spending power.• Therefore, the salary offer in Denver is better by $2,565.60 ($34,565.60 - $32,000.00). © Family Economics & Financial Education – Revised May 2009 – Career Development Unit – Comparing Job Offers – Slide 17 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
  18. 18. BenefitsFringe benefits and employer provided services can make a difference: – For example, if a $35,000.00 job had 100% of medical insurance coverage valuing $400.00 per month, a person would not have to budget for $4,800.00 in medical insurance per year. This would increase the value of his or her salary to $39,800.00. – Benefits and services should be included within the salary before calculating the cost of living. © Family Economics & Financial Education – Revised May 2009 – Career Development Unit – Comparing Job Offers – Slide 18 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
  19. 19. Sara’s Job including benefit package Cost of Living Index of City 2Salary in city 1 x = Equivalent Salary in city 2 Cost of Living Index of City 1 •Round dollar amounts to two decimal places © Family Economics & Financial Education – Revised May 2009 – Career Development Unit – Comparing Job Offers – Slide 19Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
  20. 20. Sara’s Job including benefit package• Job Offer 1 – Reno, NV – $35,000.00 salary + $4,800.00 benefits = $39,800.00 – 105.1 cost of living index• Job Offer 2 – Anchorage, AK – $40,000.00 salary + $5,200.00 benefits = $45,200.00 – 123.1 cost of living index © Family Economics & Financial Education – Revised May 2009 – Career Development Unit – Comparing Job Offers – Slide 20 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
  21. 21. Sara’s Job including benefit package $39,800.00 in Reno x 123.1 = Equivalent salary in Anchorage 105.1 Option 1 or Option 2$45,200.00 in Anchorage x 105.1 = Equivalent salary in Reno 123.1 © Family Economics & Financial Education – Revised May 2009 – Career Development Unit – Comparing Job Offers – Slide 21 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
  22. 22. Sara’s Job including benefit package $39,800.00 x 1.1712654 = $46,616.36 = Equivalent salary in Anchorage Option 1 or Option 2 $45,200.00 x .8537774 = $38,590.74 = Equivalent salary in Reno © Family Economics & Financial Education – Revised May 2009 – Career Development Unit – Comparing Job Offers – Slide 22Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
  23. 23. Sara’s Job Outcome including benefit package Job Offer 1 Job Offer 2 $39,800.00 (with benefits) in $45,200.00 (with benefits) in Reno, NV Anchorage, AK• A person earning $39,800.00 in Reno must earn $46,566.00 in Anchorage to have the same spending power.-Or• A person earning $45,200.00 in Anchorage must earn $38,590.74 in Reno to have the same spending power.• Therefore, with the benefits package included, the job offer in Reno is higher. © Family Economics & Financial Education – Revised May 2009 – Career Development Unit – Comparing Job Offers – Slide 23 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
  24. 24. Joe’s Job including benefit package• Job offer 1 - Denver, CO – $24,000.00 salary + $4,500.00 benefits =$28,500.00 – 102.9 cost of living index• Job offer 2 - Seattle, WA – $32,000.00 salary +$6,000.00 benefits = $38,000.00 – 148.2 cost of living index © Family Economics & Financial Education – Revised May 2009 – Career Development Unit – Comparing Job Offers – Slide 24 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
  25. 25. Cost of Living Equation Cost of Living Index of City 2Salary in city 1 x = Equivalent Salary in city 2 Cost of Living Index of City 1 •Round dollar amounts to two decimal places © Family Economics & Financial Education – Revised May 2009 – Career Development Unit – Comparing Job Offers – Slide 25Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
  26. 26. Joe’s Job including benefit package $28,500.00 in Denver x 148.2 = Equivalent salary in Seattle 102.9 Option 1 or Option 2$38,000.00 in Seattle x 102.9 = Equivalent salary in Denver 148.2 © Family Economics & Financial Education – Revised May 2009 – Career Development Unit – Comparing Job Offers – Slide 26 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
  27. 27. Joe’s Job including benefit package $28,500.00 x 1.4402332 = $41,046.65 = Equivalent salary in Seattle Option 1 or Option 2 $38,000.00 x .6943319 = $26,384.61 = Equivalent salary in Denver © Family Economics & Financial Education – Revised May 2009 – Career Development Unit – Comparing Job Offers – Slide 27Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
  28. 28. Joe’s Job Outcome including benefit package Job Offer 1 Job Offer 2 $28,500.00(with benefits) in $38,000.00(with benefits) in Denver, CO Seattle, WA• A person earning $28,500.00 in Denver must earn $41,046.65 in Seattle to have the same spending power.Or• A person earning $38,000.00 in Seattle must earn $26,384.61 in Denver to have the same spending power.• Therefore, with the benefits package included, the job offer in Denver is higher. © Family Economics & Financial Education – Revised May 2009 – Career Development Unit – Comparing Job Offers – Slide 28 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
  29. 29. Additional Web sites• Web sites available to help calculate salaries and cost of living in various locations – www.homefair.com – www.bankrate.com/brm/movecalc.asp – www.accra.org • $12.95 fee © Family Economics & Financial Education – Revised May 2009 – Career Development Unit – Comparing Job Offers – Slide 29Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona
  30. 30. Questions?

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