Most people, probably including you, must have a job to earn money to pay for daily expenses and, perhaps, have extra money to save for special purchases or to invest. In the last section, you learned that your knowledge and skills go far in determining how much you might earn and how far you might advance up the career ladder. But whatever your knowledge and skills, you need to know how to find the best job within your reach and gain the most that you can from it.

Holding a job offers more than a paycheck. It also can link you to other valuable benefits. Your job may help pay for health insurance, offer contributions toward retirement pensions, and provide you with further education. All these have a real dollar value. If the earnings from your job are low, you may be eligible for programs that reduce the amount of taxes that you owe or even give you a credit that adds to your income. Even though your earnings may barely cover your bills, if you budget them wisely, you may be surprised how much you can save.

But the full benefits you, and others like you, can get from holding a job may depend on the state in which you live. State policies determine the availability of some options and programs, so where you live can make a difference in the value of your job and your future savings and investing opportunities.

In this section, we will look at both how you can gain the most that a job offers, and how certain policies and programs can help you stay on the path to saving and investing your money. This section has information about:

• Finding a job and the benefits that go with it
• Making the most of what your job offers
• Gaining other benefits based on employment
• Getting by when your earnings are limited
• Managing your money

Finding a job and the benefits that go with it
How should you go about searching for a job that matches your interests, knowledge, and skills? First, you need to determine what type of job you are seeking. A career counselor can help you figure out the jobs for which you are qualified. If you are in school, someone on the staff can help you determine your career choices at this stage of your life. Also, the librarian at your local public library can help you find some guides by which to match your interests and skills to job areas. You can also find this information at the Career Center's web site, http://www.collegeview.com/careers/index.html. Or check the yellow pages of the phone book under "Career Counselors" and make some calls to find someone who can assist you for little or no charge for the service.

Once you know what type of job you are looking for, you need to "network" to find one. The term "network" is just a fancy word for connecting with as many people as possible who may know about an available job. Your connection can be with a relative, friend, teacher, someone in a community organization of which you've been part, a former employer, or even a stranger who is savvy about the kind of job you want and whom you feel comfortable approaching for advice. Also, you can check the classified section of the newspaper, especially the Sunday paper, or specialty papers for job listings. Openings for jobs are grouped together by type, so look under the headings in areas that interest you. These papers may also list openings online, so check their web page. You may also want to locate job search engines on the Internet by searching under "job openings" for jobs by type and location.

If you need help in searching for a job, you can go to the one-stop career center in your area that was mentioned in the last section. Counselors there can also help you fill out a job application or write a resume and prepare for an interview. To find the one-stop center nearest you, visit http://www.careeronestop.org and enter your zip code. Other web sites that provide information to aid you in searching and applying for a job are "The Beehive" at http://www.thebeehive.org and a site created by the National Community Action Partnership at http://www.managingmymoney.com.

If your efforts pay off, you may have a choice of several jobs from which to pick. When you get a job offer, you will want to weigh how much you like the work and the hours and location of the job. And you should think about the chance that you can move up at the company or move on to a better job in another company, if you do well in the job you are offered. You may focus most on how much the job pays, but you also need to consider as well the benefits that come with it. Let's look closely at how good benefits can greatly increase the real value of a job.

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Making the most of what your job offers
Health Insurance: Next to your paycheck, the greatest dollar value of your job can be health insurance. Health insurance for just yourself will cost at least $200 a month, and if you have a family, as much as $640 a month. (The type of coverage and how expensive health care is in your area also affects the cost.) Many employers cover half or more of the amount of the monthly payments. Having at least half of the cost of your family health insurance policy covered is like earning an extra $2 an hour or $4,160 a year.

Even if your employer pays part of the premium, you may be tempted to pass up an opportunity to have health insurance coverage, because you are young and healthy. That's a gamble. If you lose, you may have to pay over a hundred dollars out of your own pocket to cover medical care for something as common as a sprained ankle. Even worse, if you have a major accident or serious health problem, you may owe a very large sum of money for your medical care. At least one out of five people who have gone so deeply into debt that they have had to declare bankruptcy report that unpaid medical bills were the reason.

Authorized and Paid Leave: It is important to be able to take time off from your job without risking it, and also be paid for that time. While you may greatly enjoy your paid vacation days, other paid leave time may be essential. "Personal days" allow you to take time off for necessary personal business, such as a court appearance, without fear of losing your job. Paid sick leave allows you to miss work because you are ill and not have your paycheck reduced. At some jobs you can also use family sick days when your child is ill, or you or your child have a doctor's appointment.

Retirement Plan: A company-sponsored retirement plan is another job benefit that is sometimes offered. In some cases, employers pay the entire cost of their pension plan. But today most companies offer what is called a 401(k) plan in which both you and your employer contribute money. While retirement may sound a long way off to you, this job benefit has value to you both now and down the road. If you earn $25,000 a year and you and your employer each contribute 5% of your wage to your pension plan, that adds up to $2,500 a year plus interest that is going into a special account for you to use some day. And the employer's contribution of $1,250 is like earning an extra $.60 an hour. But there is also a benefit for you now because the income on which you pay taxes is reduced by the amount of your contribution, and the interest paid on what both you and your employer contribute is not taxed until you take out the money. In the section on savings and investments, you will learn more about different types of retirement plans.

Education: Your employer may also cover the cost of furthering your education. As you learned in the section on knowledge and skills, an employer may offer you special on-the-job skills training, or help you pay for courses or even get a college degree. As described in that section, such additional education and training beyond high school can substantially increase your earnings over your lifetime. Therefore, being able to take advantage of free training increases the value of a job.

Additional Benefits: Some employers offer additional benefits, including other insurance of various kinds - to cover dental work; to pay you in case you become disabled or sick for a very long time and cannot work as much; or to meet your survivors' financial needs should you die. Your employer may cover part or all of the cost of such insurance or just give you the opportunity to purchase it at a rate less than what it would be if you bought it on your own. Such benefits can give you a greater sense of security and are like extra income.

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Gaining other benefits based on employment
Certain tax policies reward your effort to earn money by adding to your takehome pay. These policies also take into account the fact that holding a job increases your work-related expenses. The tax benefits you can receive depend on your income and/or your personal situation. Described below are three important federal programs:

Earned Income Tax Credit: Everyone who has modest earnings from work is eligible for this credit that reduces the amount of federal income taxes you owe. If you do not earn enough to owe taxes, a credit is paid to you. You can apply for the credit when you file your income tax form. In 2001, this credit was worth as much as $364 for a single person and $2,428 for a family with one child, and $4,008 for a family with two or more children. Do not miss out! Call the IRS help line at 1-800-829-1040 to find out where you can get free help to apply for EITC and other federal tax credits. Or visit the web site of the Center on Budget and Policy Priorities' at http://www.cbpp.org/eic2002/index.html to learn if you are eligible for this credit and how to apply.

Child Tax Credit: If you have a child under age 17, you can apply for the Child Tax Credit to reduce the amount of federal income taxes you owe. The credit equals 10% (increasing to 15% in 2005) of your earnings above $10,500, up to the maximum amount. If your earnings are low, you can receive a refundable credit of up to $600 for each child. Families with higher earnings can receive a maximum credit of $1,000 for each child. Therefore, if you are married and have one child and earn $16,500, you can claim a $600 credit whether or not you owed income tax. The same family with $50,000 in earnings can claim a $1,000 credit. For more information on recent changes to the Child Tax Credit, call the Internal Revenue Service (IRS) help line at 1-800- 829-1040 or visit the web site at http://www.irs.gov and search under "Child Tax Credit."

Dependent Care Tax Credit: This credit allows families to reduce the amount they pay in federal income taxes to help cover some of the cost of childcare. For the care of one child the reduction can be as much as $2,400 and for two or more children you may be able to reduce the amount you owe in income taxes by up to $4,800. To learn how to apply for this credit, call the IRS help line at 1-800-829-1040 or visit the web site for the National Women's Law Center at http://nwlc.org to download the booklet "Credit Where Credits Are Due."

Most states that require you to pay state income taxes on your earnings also give tax credits to help low-income workers and families with children. Over one-third of the states with an income tax have a state Earned Income Tax Credit that can reduce the amount you owe in state taxes just as it does for federal taxes. Almost two-thirds of the states with an income tax allow you to reduce your taxes to help cover the expense of childcare. Most states also have some type of child tax credit. Some states also allow you to reduce your taxes if you have high rent payments. To check what tax credits are available in your state, visit http://www.taxadmin.org/fta/link/link.html to link to your state Department of Revenue.

When you look for and find a job, remember that government rules give you important basic job protection. The federal Fair Labor Standards Act and your state's laws set some rules your employer must follow. For most jobs there is a minimum wage the employer has to pay and there are rules that determine what is overtime and how much extra you should be paid. There also are rules to ensure protection of your health and safety and how you and you fellow employees might deal with your employer on the terms and conditions of your employment. For more information, visit the web site for the U.S. Department of Labor at http://www.dol.gov/elaws/flsa.htm. If you are a member of a union, your representative can provide you with more information about your rights.

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The table below, "Potential Value of a Job", shows how much a job could have been worth in 2001. The first line on the chart is your wage if you worked full-time and earned $12 an hour. Added to this is the value of the portion of your health insurance and retirement plan that your employer paid. Also added is the value of the federal and state Earned Income Tax Credit and federal Child Tax Credit that you were eligible to receive if you had two children. Together, these increased the dollar value of your hour's work from $12 to $16 and the dollar value of your year's work from $24,960 to $33,445. (Annual adjustments to the EITC and changes to the Child Tax Credit can further increase the dollar value of your work.)

Getting by when your earnings are limited
Unemployment Compensation: In today's economy it is not uncommon to find yourself without a paycheck because you have been laid off from work. If you do, you may be eligible for Unemployment Compensation. This program was established by the federal government, but it is largely run by the states. It is meant to help people pay their bills while they are temporarily out of work through no fault of their own. In many states, you must have earned a minimum amount in the last 15 to 18 months to be eligible for unemployment benefits, although in some states you need not have worked for so long. If you receive unemployment payments, you are expected to try to find an appropriate job as soon as you can, and in most states it must be a fulltime job. If you are laid off from work (and sometimes even if you quit your job), you may be eligible for this program. By using it, you can avoid dipping into your savings to cover your day-to-day expenses while you try to find another job. To find out if you are eligible for unemployment benefits, visit your local one-stop career center.

Food Stamp Program: People who work, but whose earnings are modest, or people who are temporarily without a job, may be eligible for the Food Stamp Program. This program helps cover the cost of food for households with income less than 130% of the official poverty rate. For example, a family of three with an income of $19,526 or less in 2002 and little money in savings, could qualify for food stamps. The value of the food stamps you receive depends on the number of people in your household, monthly total household income, and other living expenses, such as high housing costs or medical bills. For example, a family of three with no income would receive $356 a month in food stamps. The same family with $500 in monthly earnings (after taking out the cost of certain expenses) would receive $206 in food stamps. Is it worth applying for food stamps, if say, you are eligible to receive only $50 a month? The next section on savings and investments explains what a difference that modest amount of money can make over time. To learn more about food stamps or to find the toll-free phone number for your state, call 1-800-221-5689.

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Housing Assistance: There are several state and federal programs to assist people who are having difficulty affording the high cost of housing, but availability is limited. People with very low income may qualify to live in federal public housing, or to use what are called Section 8 vouchers to help pay the rent in private housing. Both programs are set up so that your rent is not more than 30% of your monthly income, but sometimes people using Section 8 vouchers find themselves needing to pay more than this to rent a unit that is acceptable to them. The number of rental units available through both programs is decreasing, causing waiting lists to get longer. Your state may also have its own programs to help people lower their housing expenses. To see if you may qualify for a federal rental assistance program or to locate a housing counseling agency near you, call your local Housing Authority, or visit the U.S. Department of Housing and Urban Development web site at http://www.hud.gov/faqs/faqrenting.cfm or the web site for the National Low-income Housing Coalition at http://www.nlihc.org.

Health Care Coverage Options: If you have been laid off from work and you were receiving employer-provided health insurance, you can continue that insurance policy while you look for another job. This is referred to as COBRA coverage. It is helpful because you can get health insurance at a group rate, rather than a very costly individual rate, but you have to pay the full cost of the premium. For more information, visit the U.S. Department of Labor's web site at http://www.dol.gov/dol/topic/health-plans/cobra.htm.

If you cannot afford COBRA or you are employed but your employer does not offer health insurance coverage, you may still have low cost options. If you participate in some other government assistance program, you may be eligible for the federal Medicaid program. Also, some states offer their own health insurance plans to very low income adults who would otherwise be uninsured. Even if you are not eligible for such assistance, your children may qualify for the federally supported State Child Health Insurance Program (SCHIP). This program provides, at low or no cost, insurance that pays for doctor visits, prescription medicines, and hospitalization. Each state has different eligibility rules, but in most states uninsured children 18 years old and younger, whose families earn less than $34,100 a year (for a family of four) are eligible. In some states, the parent of a child who receives SCHIP is also eligible for coverage for himself or herself. Visit the web site http://www.cms.hhs.gov under "Consumers" to learn more about the Medicaid and SCHIP programs and to locate the toll-free phone number for your state to determine if you or your family are eligible for health care coverage.

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Temporary Assistance to Needy Families (TANF): People who have children under age 18 and little or no earned income may be eligible for the Temporary Assistance to Needy Families (TANF) program. TANF provides cash assistance to families when the parent temporarily cannot work because of family responsibilities, such as caring for a very young or disabled child, or cannot find work because of lack of skills and experience. This assistance may be necessary to maintain yourself and the people who depend on you while you prepare to get a job. TANF also can fund costs related to getting and holding a job, such as training, transportation, and childcare expenses. In 2001, across the country almost as much of TANF funds were used to cover the cost of childcare and other activities supporting work (30%) as went toward cash assistance (38%). Although this is a federal program, the cash and other types of assistance you may receive vary from state to state and the program may be known by a different name. Visit the U.S. Department of Health and Human Service web site at http://www.acf.dhhs.gov/news/welfare/stlinks.htm to link to information about services in your state and contact information, or go to your local welfare office to find out what benefits you may be eligible for.

Supplemental Security Income (SSI): If you become disabled and have a low income and few assets, you may be eligible for the Supplemental Security Income (SSI) program. Children as well as adults can qualify for SSI. As the name implies, SSI payments are meant to supplement your income if you are able to work at some level. But SSI payments will cover your basic living expenses and extra expenses due to your condition, if you cannot work. The amount of your monthly SSI payment varies depending on the seriousness of your disability and the state in which you live. To get information or to apply for benefits, call 1- 800-772-1213 or go to your local Social Security office.

Workers' Compensation: If you are injured at your job and unable to work, you may be eligible for Workers' Compensation. These benefits include weekly payments to make up for income lost during the period of time you cannot work. This compensation may also cover your medical costs related to the injury, and pay for training in a new field if you cannot return to the same type of work you were doing. The personnel manager at your work can let you know if you are eligible for benefits. Check your state's rules for Workers' Compensation benefits, at http://www.dol.gov/esa/regs/compliance/owcp/wc.htm.

Managing your money
In the next section on savings and investments you will learn how savings can grow and how special programs can help you save more. But how do you start saving? It may seem as if there is no money left over after paying for the basics and buying other items that you occasionally need. But there are several things you can do to find that extra money.

Be a Wise Shopper
You have explored ways to increase your income. Now let us see if there are ways to hold down your expenses. For example, you may be able to save money on food and still eat in healthy ways. Simple savings tips include buying store brand products, avoid buying prepared or fast food, and buying fruit juice at the supermarket, rather than from a vending machine. These and other steps can reduce the cost of some food items by half. When shopping for larger items, be a comparison shopper and ask questions so you know if you are getting the best deal, whether you are buying a mattress or a bike for your child. Avoid using rent-to-own stores, especially when you purchase very big items like furniture or appliances. The low monthly fees they advertise may seem attractive, but over time you can end up paying two or three times the real cost of the item. For example, if you agree to pay $60 a month for a year for a TV, you will pay a total of $720 for a TV that you may have been able to purchase at a regular store for $300.

An automobile is one of the biggest purchases you may make. You will need to decide whether you should buy a new or used car, or lease one. Whatever your choice, there are many things to consider. If you buy a used car, there are questions you should ask about the condition of the car and you may want to ask a person who knows about cars to inspect it for you. You can buy or lease a new car. If you borrow money to purchase the car, you own it after you've made all the monthly payments. If you lease the car, the monthly payment may be lower, but you will not own the vehicle at the end of the lease. Your choice will depend upon what you can afford and your driving needs. If you buy a car and wish to get a loan, you need to know whether the terms of payment of the loan are a good buy and whether you can make the payments. (If you miss a few payments, your car may be repossessed and taken away.) Visit the web site for Consumer Reports for information that can help guide you through these many decisions. Go to http://www.consumerreports.org and click on "Autos."

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Manage Your Money Wisely
You may be able not only to spend your money more wisely but also to manage it more wisely as well. To avoid normal check-cashing fees, take advantage of direct deposit into a bank account if your employer offers this option. To help you save each month, arrange for a certain amount to be automatically taken out from your paycheck and deposited into a savings account. This way you invest in your future first. Join the credit union through your job, if one is available, to aid you in taking these steps. And avoid schemes that eat up your money with nothing to show for it! It may seem easier to use a check-cashing outlet, rather than set up an account at a bank or credit union, but the fees it charges can take a bite of up to 20% out of your check. Also, other services they offer might be available to you elsewhere for free or very little. For example, you can use a check from your bank account for no extra charge to pay your utility bills, or you can purchase money orders at a post office for a much lower fee. (For more information about obtaining services from banks and other financial institutions, check the discussion on "Basic Savings Account" in the next section on saving and investing.)

One of the most costly ways to borrow money is by taking a payday loan. Payday lenders are found in many places, such as check-cashing outlets, convenience stores, gas stations and pawnshops. To obtain cash, a person writes a check to the lender for the amount they want plus a fee. If the borrower does not pay back the loan amount and fee within a short period - often 10 to 30 days - the lender can cash the check. If you borrow in this way, you can end up paying a very high rate of interest. For example, if you borrow $100 and agree to pay back $115 in two weeks, it would be similar to agreeing to pay back $390 at the end of a year for a $100 loan now - an annual interest rate of 390%.

You may decide to use a credit card to make purchases. Credit cards can be very helpful, but they can also be risky if their use is not managed appropriately. Even people who usually manage their money well can build up too much debt on their credit cards. If you charge many purchases but only make the minimum monthly payments, you may pay interest rates as high as 20% on what you still owe. If you get too far behind in making payments, you will hurt your credit record and the credit card company may cancel your card and go after you for all the money you owe. To learn more about credit card use and costs, visit the web site of Consumer Action, http://www.consumeraction.org/english/articles/credit_cards_what_you_need_to_know/.

Your credit history is important because it provides valuable information on how good a credit risk you are. If you have a poor record of paying off your credit card debt or other money you borrow, you may find it hard or impossible to get a loan in the future. If you do get a loan, you may have to pay a higher interest rate. When you apply for a job, an employer has the right to check your credit report and might not hire you if you have a bad credit history. To look at your credit record, contact: Equifax at 1-800-685-1111 or http://www.equifax.com or Experian at 1-888-397-3742 or http://www.experian.com or Trans Union at 1-800-916-8800 or http://www.transunion.com. To learn what your credit score means, check the web site for the Consumer Federation of America at http://www.consumerfed.org/knowyourscore.pdf.

For many more ideas on how to manage your money wisely, check "The Beehive" at http://www.thebeehive.org and a site created by the National Community Action Partnership at http://www.managingmymoney.com.

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