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Knowledge, skills, and experience are "assets"
that you acquire throughout your lifetime. They are
as valuable to you as money in the bank or the home
you hope to own. In fact, your level of knowledge and
skills will likely affect how much financial wealth
you will build up through the years.
Virtually any job, no matter what it is, can provide
valuable experience and give you an opportunity to show
that you are a good employee. But over time you may
find you need to earn more to cover your basic living
expenses and begin to save and invest. In today's economy,
your chances to qualify for a good job, and the paycheck
and benefits you gain from it, depend upon the knowledge
and skills you have now and build on over time. You
can acquire these in school, at the workplace, or in
other settings.
But the gains that come from building your knowledge
and skills are not just valuable to you. They can also
benefit the people who live near you. If you earn more,
you are likely to spend more at the businesses in your
neighborhood and elsewhere. If you are better informed
and get involved in your community, you can help make
sure that wise decisions are made that will improve
the quality of life for you and your neighbors.
For these reasons and many others, it has long been
considered to be in the interest of the community to
help people acquire the knowledge and skills that can
lead to success. Therefore, private and public resources
are combined, and community leaders and public officials
work together to provide support for training and education.
Over the years, people from all types of backgrounds
have benefited from these programs. But others miss
out because they do not know about available programs,
or do not qualify for programs, or there are too few
openings available.
In this section, you will learn about the steps you
can take to build your knowledge and skills throughout
your lifetime. As you follow each of the steps listed
below, you will also find information about programs
and policies that can help you and others move along
pathways to get ahead.
Starting with basic education
You have heard many times that it is important to have
at least a high school education. There is good reason
for this. Most people with less than a high school education
earn substantially less than others who have a high
school diploma or GED (General Educational Development)
certificate. From the chart below, you can see that
the typical annual income for someone early in their
career, who is working full-time and is a high school
graduate (but has not attended college), is already
$5,000 more than that of someone who does not have a
high school education.
But to really prepare yourself for today's job market,
you need more than a high school education. Even many
"entry-level" jobs require more than good
reading, writing, and math skills. You must be able
to pick out important information and use it to solve
problems. Also, in many jobs, you work as part of a
team with your fellow employees, not alone. So you have
to be able to communicate clearly and work together
with others on projects. If English is not your native
language, you may need to speak, read, and write well
in the language of the workplace - English.
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| What You Can Expect
to Earn in a Year |
| |
|
| Education |
Median* Income |
| 9th to 12th Grade, But No Diploma |
$17,282 |
| High School Graduate/GED |
$22,078 |
| Some College/No Degree |
$25,358 |
| Associate's Degree |
$29,033 |
| Bachelor's Degree |
$36,526 |
| Master's Degree |
$41,303 |
| U.S. Census
Bureau, September 2002 |
| * "Median"
means middle point of all incomes in that category.
Income shown is for workers 25 to 34 years old in
2001. |
If you don't have a high school education and the other
skills you need for today's jobs, it is not too late.
In many locations across your state, at different times
of day and on weekends you can take classes to earn
a GED or learn English or build other valuable workplace
skills. These are known as adult basic education (ABE)
programs. Visit http://www.literacydirectory.org
to find a program in your area. You can also get help
in locating an ABE program through your local one-stop
career center. In addition to helping you find a job,
these centers can link you to training providers and
may assist you with paying for the cost of training.
To find the one-stop center nearest you, visit http://www.careeronestop.org
and enter your zip code.
Getting the knowledge and
skills to advance
Clearly, getting high school credentials and basic
job skills is important. But the value of education
and skills training does not stop there. Each year of
formal education beyond high school adds thousands of
dollars to your yearly earnings. This can really make
a difference over time. On average, between the ages
of 25 and 65, people who are just high school graduates
will earn a total of $1.2 million (in 1999 dollars).
But those who hold a bachelor's degree will earn $2.1
million - plus what they gain if they save and wisely
invest some of the extra money they make. (See section
on savings and investments to learn how to increase
your wealth.)
It is clear that earning a bachelor's or master's degree
in many fields will increase your chances of earning
more. But even if you are not immediately able to invest
the time you need to gain that level of education, you're
not out of luck. With the right vocational or technical
skills training, you can qualify for a job that still
pays good wages and benefits. For more information about
the training and qualifications necessary for different
jobs, what they pay, and the outlook for job growth,
check out the U.S. Bureau of Labor Statistics' "Occupational
Outlook Handbook" at http://www.bls.gov/oco/home.htm.
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Accessing basic education
Many people want to take adult basic education
(ABE) classes to earn a GED, learn to speak English
for the workplace, or to build other valuable
workplace skills. There can be long waiting lists
of people who want to start a class, especially
for classes that teach English to those people
who speak a different primary language. The demand
for available seats is generally greater in urban
areas, but people living in rural areas who want
to attend classes run into different problems,
such as difficulty with transportation or child
care. The result is that many individuals who
want to learn to gain employment or a better job,
cannot access the resources to do so.
Help in finding an ABE or other
training program and, perhaps, paying for it,
is available from local one-stop career centers.
These centers have been set up across the country
to help a wide array of people find employment
or better jobs. They provide information about
job openings, assist with the search for a job,
and link people to ABE and other training programs.
People who need to update or increase their skills
to find employment may be given Individual Training
Accounts (ITA)s to pay for qualified training
providers. ITAs have a value that ranges from
$1,000 to $10,000 and pay for up to six months
to two years of training depending on the area
and the type of training. Although you may be
told that these funds aren't available or there
are no openings for the training program, it is
important to make it known they are needed. To
find out more about ITAs and policies and programs
that affect the training that is available to
you and others, check out these reports on the
web, http://www.workforcealliance.org/who/platform_wia.shtm. |
Today, many jobs - including work in a warehouse or
bank or as a truck driver - require some technical training,
especially computer skills. You may be able to start
with basic technical skills training at a community-based
program and continue with more advanced training at
a community or technical college. Courses may be offered
in the evening or on weekends to make it easier to attend.
Your local one-stop center should have a list of skills
training programs offered in your area and information
about how to enroll. For general information about community
and technical colleges near you, visit http://www.aacc.nche.edu/Contnet/NavigatorMenu/AboutCoummunityColleges/
CommunityCollegeFinder1/Community_College_Finder.htm,
or call the American Association of Community Colleges
at (202) 728-0200.
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At your local community or technical college, you can
also earn an associate' s degree or credential certification
in specialized skills that can give you a leg-up on
jobs in high demand fields. A wide range of occupations
do not require a four-year college degree, but include
jobs expected to be in high demand over the next ten
years. For example, in ten years, there will be 160
job openings for Home Health Aides for every 100 job
openings that exist today. Below are examples of the
anticipated growth in high demand jobs and the median
hourly wages they paid in 2000.
| Future High Demand
Jobs |
| |
| Occupation |
Ten Year Growth |
Median* Hourly
Wage |
| Home Health Aide |
60% |
$8.10 |
| Desktop Publisher/Printer |
55% |
$14.26 |
| Fitness Trainer |
52% |
$12.20 |
| Cable TV Installer
& Repairer |
43% |
$16.17 |
| Dental Assistant |
38% |
$12.47 |
| Bank Customer Service
Rep |
37% |
$11.33 |
| Landscaping
Supervisor |
36% |
$14.20 |
| Computer
Data Entry Clerk |
35% |
$9.84 |
| U.S. Bureau
of Labor Statistics, 2002 |
| 2002* "Median"
means middle point of all wages paid in that field |
While increased education is likely to bring financial
rewards over both the short and the long term, the benefits
are not measured solely in dollars and cents. The knowledge
and skills you gain will help you grow as a person,
develop a broader view of the world, and learn new ways
of making choices about your personal life and the society
about you. They may also lead you to a job that may
not pay as well as others, but rewards you in other
ways - not the least of which may be feeling good about
going to work each day.
Exploring your choices for
assistance to pay for college
Education and training beyond a high school diploma
is a wise investment in your future. But tuition and
fees can be expensive. The average yearly cost of tuition
and fees at a private four-year college is $17,123,
with some as high as $30,000. For public four-year colleges,
the average yearly expense is $3,754, and for a community
college, it is $1,738. (Public college tuition expenses
can vary greatly among states.) Saving from your earnings
and managing your money wisely can help you cover at
least part of the expense. (See the section on savings
and investments for more information about special savings
plans.)
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Opportunities to get the
knowledge and skills to advance
Parents who have not been able to work for
a while and receive Temporary Assistance to Needy
Families(TANF) cash assistance may be especially
interested in gaining the knowledge and skills
to get a good job. How much these parents are
supported in their efforts to get education and
training depends on the TANF policies of their
state. Some states have programs that encourage
parents to receive an associate's or bachelor'sdegree
in a field with good job opportunities and provide
cash assistance and other supports to the family
throughout the years of school. Other states may
require a parent to spend a substantial amount
of time each week in work activity that does not
include education and training, so there is little
time to devote to classes and study on top of
taking care of children. To learn about policies
that might enable TANF parents to be better prepared
for good jobs, check the Center on Budget and
Policies Priorities' report at http://www.cbpp.org/5-18-01wel.htm.
For many people, having computer
skills can be an important factor in getting a
good job, but not everyone has the same opportunity
to learn these skills, either through the public
schools or by access to computers in their own
homes. For that reason, special programs offer
people access to computers and training on how
to use common computer programs and connect with
the Internet. For example, the Community Technology
Centers program provides federal funds to communities
that are willing to also use state or local funds
or other resources to increase computer access
at local libraries or other sites in the community.
If you want to learn about how people benefit
from this program and other ideas about how everyone
can have access to computers and training to use
them, check the Benton Foundation's web site at
http://www.benton.org/. |
You might also be able to get financial aid. Over three
out of four students at four-year private colleges and
almost two out of three at four-year public schools
receive some type of financial assistance. You may be
eligible for private scholarships or grants depending
upon your background, level of achievement, or chosen
field of study. Colleges with high tuition and fees
try to make their programs more affordable to promising
students by offering financial aid packages that are
sometimes very generous. The guidance counselor at your
high school or community college can help you learn
what financial assistance may be available to you. Or,
the librarian at your public library can show you how
to look up this information. You can also visit http://www.petersons.com
for more information on financial aid for college.
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Regardless of what school you want to attend, there
are also several government programs that may give the
hand-up that you need:
Pell Grant - You may be eligible for this federal
grant based on your own or your family's income. Unlike
a loan, it does not have to be repaid. Pell Grants are
usually given to undergraduate students who have not
earned a bachelor's degree. The amount of the grant
is determined by your financial need and the cost of
your education program. The maximum award in 2000 was
$3,125, with an average grant of $1,915.
Perkins Loan - This loan is awarded to undergraduate
or graduate students with exceptional financial need.
Undergraduates can borrow up to $4,000 per year, and
graduate students up to $6,000. Payments on the loan
begin 9 months after leaving school and must be repaid
over 10 years at 5% interest.
Direct Loan and Federal Family Education Loan (FFEL)
- The federal government makes Direct Loans, and FFELs
are loaned through a financial institution. For both,
undergraduates can borrow up to $2,625 their first year,
$3,500 their second year, and $5,500 during their last
two years. It is not necessary for either loan to be
based on financial need, but if it is, no interest is
charged while you are in school. Otherwise, you must
pay interest starting at the time you borrow the money.
The interest rate varies with market conditions, but
cannot exceed 8.25%.
Other Options - Several other government programs
can help you pay your college expenses. Through the
Work-Study Program, you may be eligible to get an on-
or off-campus part-time job paying at least the minimum
wage. Or if your parents still include you as a dependent
on their income taxes, they may apply for a federal
PLUS Loan for which the interest rate can never exceed
9%. If your parents were able to contribute over the
years to what are called 529 8 plans, their accumulated
savings can help you pay for your college education.
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Accessing financial assistannce
for education and training
You can further your education and training
by starting in a non-degree program, or attending
college part-time as your work and life schedule
permits. But if you do, government grant and loan
programs for education may not be available to
you. While these programs help many traditional
students who are working toward a college degree,
they generally cannot be used for short training
courses or non-degree certificate programs. Also,
working adults who are less-than-half-time students
have difficulty meeting the requirements for Pell
Grants and Perkins Loans, and they are not eligible
for Direct Loans or Federal Family Education Loans(FFEL).
Also, if you are in a degree program but decide
to stop your studies for a period of time, you
may have to begin paying back the loan. The first
payments on Perkins Loans start nine months after
leaving school. Direct Loan and FFEL payments
begin six months after leaving school. The future
of these student loan programs is uncertain. For
ideas about how student aid programs might be
improved to better assist adult learners, check
Futureworks' report on this topic at their web
site, http://www.futureworks-web.com/pdf/Held%20Back%20report.pdf. |
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Opportunity for training
through the workplace
State employer tax credits or targeted state
payments that encourage employers to offer training
opportunities to their workers have several purposes.
States' policy makers want to encourage businesses
to locate in their state or to remain there and
grow. Employers want new workers who have, or
current workers who can gain the skills that will
help the business keep pace with technology and
stay competitive. You can learn what your state
offers by checking the web site for your state's
department of employment and training. You may
want to check if your company is taking full advantage
of what is offered, especially those programs
that enable less-skilled employees to upgrade
themselves at the workplace. There may be ways
for more workers to take advantage of these training
opportunities. Workers in entry level jobs or
less skilled occupations could be given direct
assistance to fund training. Also, businesses
might be encouraged to use their own resources
for training through special state initiatives. |
For more information, visit http://www.studentaid.ed.gov/PORTALSWebApp/students/english/publications.jsp
or http://www.finaid.org
to learn the details about government grants and loans,
or ask the guidance counselor at your local high school
or community college.
Staying on the career ladder
and moving up
Your education should not stop after you have gained
technical or vocational skills training or a college
degree. In almost any job, you will need to learn new
skills as work changes with the economy and technology.
You will likely change jobs several times during your
career, moving from one company to another, or even
one industry to another. In the future, you may find
jobs in newly created professions, while other jobs
become obsolete.
The process of keeping your knowledge and skills up-to-date
is referred to as lifelong learning. You may have a
chance to learn new skills on the job, or you may want
to pick up courses at a local community college or work
toward a higher college degree. Most states have programs
that encourage employers to offer training to their
employees so they can keep their skills up-to-date and
prepare themselves to take advantage of opportunities
to advance in the company. This training may be provided
at the work site during regular work hours or after
hours in some other setting. Some employers may even
pay all or part of your tuition to complete a college
degree in the field in which you are working.
Do not pass up an opportunity offered through your
job to learn new skills that may be useful throughout
your working career. When considering a job change,
check whether a prospective employer offers training
or a chance for you to get more college credits to advance
your knowledge and skills.
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Applying what you know to
starting your own business
You may want to start your own business. If you
do, there are many things you will need to know. It
is likely that your business will start very small,
and take only some of your time while you still hold
a regular job. It may be a good way to supplement what
you earn, and never become your only source of income.
But no matter what the size, to succeed in your business
you will need to be good at what you do, know how to
market it to get customers, be able to keep proper records
of expenses and payments, and plan for weeks and even
months ahead.
Several million people in this country run microenterprises,
or very small businesses. Although not all of these
businesses succeed, about two-thirds survive at least
five years if the person who starts the business gets
the training and support needed to run it. Low-income
people who have enjoyed this kind of success have substantially
increased their annual household income.
Whether you start a house-cleaning service, restore
antique furniture, or design web sites, you will probably
need to learn how to develop, manage, and grow your
business. Your local community or technical college
may offer credit and non-credit courses to teach you
the skills you need. Technical assistance, training,
and support may also be available from other community
agencies, such as community development corporations
(CDC). To locate the CDC near you, check the web site
for the National Congress for Community Economic Development
under "State Associations" at http://www.ncced.org/associations/index.html.
Or visit the web site for the Association for Enterprise
Opportunity at http://www.microenterpriseworks.org
for information about other resources available in your
area. Also, the web site for the Small Business Administration
at http://www.sba.gov/starting/
provides information about local training opportunities
and helpful start-up tools, checklists, and resources.
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Preparation to run a business
Anyone who starts his or her own small business
or microenterprise will probably need help that
goes beyond getting the necessary financing. In
fact, a survey of people who wanted to start a
microenterprise found that a very large number
did not seek loans, but instead sought training,
technical assistance, and access to market services.
The knowledge and skills necessary for starting
a business are not commonly taught in high school
or college degree programs. For this reason, the
federal Small Business Administration's Program
for Investment in Microentrepreneurs (PRIME) provides
assistance to low-income people and others who
want to start a business, regardless of whether
they take out a loan. PRIME provides grants to
69 organizations across the country to make training
available in such areas as financial management,
bookkeeping, and marketing. (Services may not
be available in your area due to federal funding
cut backs.) To find out more about PRIME and other
ways to enable people to start and succeed in
their own business, visit the Association for
Enterprise Opportunity's web site at http://www.microenterpriseworks.org/services/policy/. |
Starting a business will probably mean you will have
to have money to invest upfront to cover expenses before
you receive any payment for your services. The section
on saving and investing describes how you can turn your
savings into a small business or microenterprise and
how you can get help in applying for a loan, if you
need one.
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