The Career Place   |   Youth

Career Education and Opportunities for Youth
Presented by Chris Shannon

An Argument for Career Education:
A Comparative Case Study

‘I’m 16 — time to go out and get a job. Could use the money… hmmmm, some fast food jobs available. Think I’ll get one and work a few hours after school. This way it won’t interfere with school and I can get some money.’

Smart thinking. But not smart enough. There are more educated decisions you can make that may not bring in as much money now, but will pay off in the long run. With the pressing need for more time in a fast-paced world and the increasing push for money, taking the time out for career education, or, (heaven forbid!) working for free seems foolish. But if you compare the short-term investment of quick money at an easy, low-skill job to the long-term investment of career education, it’s surprising how the numbers stack up against each other. For example, take this hypothetical case built loosely on a real situation of a worker, now aged 36:

So what is this magical ‘career education?’
Read on for more about the need for career education, types of career education opportunities, and some tips to get you started.

Now, where these numbers came from…

‘Without Career Education’

• Four-year state university = $20,000 loan (with interest accruing each year for the semester loans already made, the loan totals $24,333 at the end of college). Ah, the good ol’ days, when college only cost $20K. (smile) Had this been my own experience, it would be a five-year degree (I had a dual degree). Today, completing a college degree in five years is a growing trend.

This person, however, realized the last semester of college that as much as she loved education and teaching, she hated working with young kids, so that degree in elementary education became a worthless sheet of paper. Remember, that training tends to be based in theory until the close of the educational experience; then training becomes practical and hands-on in most fields. So, in our hypothetical example, Nan floats from job to job trying to find a new career that better suits her personality and abilities. 

• Four years for degree, two years for additional training, four years to find suitable work outside of degree area

Even in an ideal world, it takes time to settle into a new field. In Nan’s case, after two years of floating, she found a career that interested her and she went back to school for training. Once out of school, it took two more years to find the ideal job in her new career area. So, the total time spent in school on training is six years, the total time before settling into a career is 10 years.

• Deferred loan payments at 8% student loan interest rate resulting in 14 years totaling $69,431.50

After college, low wages in an entry-level position forced Nan to take the offered two-year deferment for her school loan.  After two years of payments, she deferred the loan again to go back to school (this time interest free).  With a conservative estimate of interest calculated annually, she would end up paying off her loan in approximately 14 years, paying three times the amount of the initial loan.

• Three job turnovers plus minimal earnings each time produces yearly salary of $29,120

Another conservative figure. People age 18 to 36 average 10 turnovers (i.e., new jobs) with more than two-thirds of those turnovers occurring in the first half of that period [Bureau of Labor Statistics, 2002].  Also, the unemployment rate (unemployed, fired, laid-off) is four times higher in young adults (16 to 24) than for older adults [DOL, interpreted by Sum and Palma].  Without a degree in the field, Nan is forced to accept lower wages as well as less job security; both of these factor into a lower annual salary.  This cited salary is based on $14/hour wage, which is over twice the minimum wage requirement for the state of Massachusetts.

• Re-education with no reimbursement = 2 years, $10,000 each ($21,525 total loan at 5% interest, $31,555.44)

Nan had to foot this bill herself; with the fluctuations in interest, she was able to secure a loan at a lower interest rate. Although it is possible to find ‘Earn and Learn’ programs, a growing number of adults are finding themselves back in the classroom with no financial aid available. Most scholarships and grants are available to students completing a bachelor’s degree or to single mothers, those with disabilities, and other special needs cases to entice them to attend a training program.

Note: A future workshop at The Career Place is in the works to discuss various ‘Earn and Learn’ programs as well as other creative means for financing training and higher education.

At age 36, Nan’s approximate net worth is $6,715.06

This figure takes into account: loan and training, taxes, housing (at 28%), and other bills (35%, including food, car, utilities, etc.)—all very conservative estimates, especially in Massachusetts. This number does not account for any other bills such as travel, computers, credit cards, clothing, or the like. Divide by 14 years, and then by 12 months, this reveals how much ‘extra’ money Nan would have a month.  Nan also has no money in a retirement account due to her high number of turnovers and has been unable to save any money towards future expenses, such as a new car, her own home, or children.

‘With Career Education’

Let’s say that the same person invested time into career education while she was in high school. By completing tests to find out what kind of work she was best suited for in her personality and abilities, Nan was able to target several industries she wanted to investigate before she had to decide which college to attend. Through networking with family, neighbors, and her parents’ co-workers, she was able to make contacts with key decision makers within several companies to set up career education opportunities such as volunteering, job shadowing, and interning. These experiences not only helped her pinpoint a career better suited to her, but created contacts that provided work while in school, corporate scholarships, and a job for her when she graduated. Keep in mind, these numbers are based on figures from 15+ years ago, but with career education, Nan’s financial numbers would look more like this:

• Internship pay stipend (1.5 years) = $2000

Even in this economy, it’s not unusual for unpaid internships to become a paid one. Internships provide little benefit to the employer who invests time, money, and training into a person who will leave after a designated time. If the working relationship is a good one, it’s often common for employers to want to keep that investment within the company by extended the internship into a paid opportunity. Even if this is not the case, the student is now qualified for entry-level positions within that company, and the company could hire the student without any additional training (one of the most expensive personnel costs for companies), thus saving money. So, it’s in the company’s best interest to hold onto interns.

• Industry-based scholarships and grants = $5000

It is also not uncommon for companies—especially larger, for-profit companies—to offer scholarships for employees. But don’t fret if you get career experience with a non-profit organization. Many times this type of work, especially unpaid, will help you qualify for larger scholarships available to all students or for the scholarships made available by colleges to entering freshmen.

• Four years state university = $13,000 loan ($15,011 at end of school)

Money saved from the internship and scholarships means that Nan only has to finance three years of college instead of four. With less principal, the interest amount will be lower, resulting in a loan over 30% less (for 25% less loan). Not bad!

• Loan payments at 8% student loan interest rate = $32,407.62 total over 10 years

Because Nan was able to train in an area that interested her and in which she had experience, she was able to put her degree to use as soon as she graduated. With no need for deferments, she paid the loan in the agreed time of 10 years. The end result is she saves over half the amount it cost in the first scenario—not to mention she no longer needs to pay for retraining. (An interesting aside—once an employer invests in an employee, required career training is usually covered by the employer.  Nan can continue her training a few years down the road but at no cost to her. So, she saves money there, too.)

• Higher average salary due to entrance level and advancement = $36,400

Nan not only has a college degree relevant to her job, she also has previous experience. Both of these make her a more valuable employee and she is compensated with a higher salary. College graduates with a related degree usually start at a 25% to 35% higher salary than those without a relevant degree and can expect to earn up to 50% more [US Census Bureau, 2001]. The salary here is actually fairly conservative considering the graduate has both degree and experience. Her cost of living is still figured at 28% for housing ($152,880 instead of $105,996 over the same period of time) and 35% for bills ($191,100 total versus $70,222), which means she can afford better housing and a better lifestyle.

• At 36, her approximate net worth is $65,520-- ALMOST 10 TIMES A DIFFERENCE! 

This figure doesn’t include the many other benefits that Nan could have at this point. Since she has been with one employer for 12 years versus the four years in the other scenario), Nan would see salary raises and would have other benefits, including health insurance, paid sick leave, and paid vacation to start. This worth does not take any investing into account, nor does it reflect monies paid by the employer towards retirement.

Making Better Career Path Decisions

OK, so it DOES pay to invest some time into exploring careers and companies while still in school. Some careers require unpaid internships as part of the college degree requirement but it is always a good idea to get a head start. Use your career education as a chance to learn which college institutions have more clout in a given field. You don’t want to start going to Local U. only to find out that the best writers have degrees from Literate U.! Conversely, you don’t want to shell out big bucks for a private or out-of-state school to find out the local one fit the bill.

High schools. In an ideal world, high school guidance counselors arrange career education opportunities for all students. However, they now have to do more with less funding and guidance counselors find themselves limited in both staffing and resources. Therefore, it is up to students and parents to create career education opportunities using resources available at the schools, public libraries, and local career centers.

Rising Cost of College

The numbers we used in the two scenarios are heart-breakingly old. So, get the hankies—here are some recent figures for college…Remember, the total cost would be true only if this year’s costs were constant, but, unfortunately, it’s not like locking in an interest rate on a loan—college costs continue to rise two to three times faster than inflation.

* Source: Department of Education, National Center for Educational Statistics
^ Source: Based on differentiation between actual tuition costs for UMASS Lowell, 2003-4

Career Education…the Other Payoffs

Career education provides more benefits to students than just a bigger paycheck. (Although we LIKE the bigger paycheck…) Benefits of career education include:

• Better academic performance
• Lower turnover rate (more likely to find a rewarding job and STAY with it)
• Better use of college time and $$$
• Focused networking opportunities
• Easier to advance (with a degree) into a higher level position once within the industry

Career education helps students make connections between what they are learning in the classroom and the ‘real world’ (or as adults know it, ‘work’). It’s also easier for students to carry this focus on to college; previous practical experience makes more sense of otherwise theoretical class content. It’s also harder for students to pass off a bad grade or undesirable class with ‘When will I ever need that?  I know what I will be doing,’ without realizing that all jobs require basic skills such as written and spoken communications and a basic understanding of math.  When I was a senior in college I was proud of the fact that I had ‘escaped Physics’ only to find myself floundering in Astronomy in college. Later, I landed a fantastic work-study position at a science museum that required a basic knowledge of Physics to teach instructors about light.  A better understanding of science would have better prepared me for all of the jobs I have held over time. Never assume what you may or may not need to know for a future career.

Types of Career Education Opportunities Defined

Career education opportunities fall into the following categories:

Volunteering:

• Unpaid/uncompensated for duties performed
• Services are provided for a non-profit organization
• Can last a few hours; usually extended over time
• Can be part of graduation requirements
• Sample volunteering options:
• hospitals
• nursing homes
• advocacy groups
• public events planning
• peer tutoring

Job Shadow:

• Shorter opportunity; can create a future opportunity
• Targeted field, company or position; private or public; profit or non-profit
• Uncompensated; no duties are performed (unless for demonstration purposes)
• Opportunity for informational interviewing and networking
• Aim high! For example:
• a state representative
• CEO of a local science or medical company
• President or director of a sport franchise
• Marketing & Communications vice president for a large banking corporation

Internships… Unpaid and Paid:

• Usually extended opportunities
• Duties are performed and compensated (through pay or school credit)
• Opportunity directly related to career education
• Requires more hands-on training
• Opportunity for informational interviewing and networking
• Unpaid can lead to paid; paid can lead to employment

Employment:

• Extended opportunity
• Duties performed for pay compensation
• Bona fide relationship with employer
• Training stays within the company
• Performance can directly relate to length of opportunity

All four opportunities tend to be mutually exclusive. It’s inappropriate to get paid as a job shadow.  However, there is the occasional ‘two-fer’ possible if one does one’s research and asks questions—this creates opportunities.  (NEVER hurts to ask.)  For example, there are several summer camps that specialize in various fields such as language, sports, computers, and the arts. It may be possible to work for pay at a French Camp and receive partial school credit for the bilingual experience.

Tips To Find the Best Career Opportunities

OK, hopefully, you are sold on the idea that career education can really help give you a leg up in your education, your career, and your future happiness.  So how do you find those truly cool opportunities? Try the following tips:

Tip 1: Search for the “Wow!” Factor

Your goal is to make someone pick up your resume or application, see this experience and say, ‘Wow!’ This not only fosters interest in you, it makes you stand out from other applicants and can become a conversation-starter.

• Leverage for the “Wow!” factor through corporate name recognition.

• Leverage for the ‘Wow!’ factor through unusual job title/duties.

Tip #2: Network

You are only as important as the people you know. Don’t make your desired opportunity a secret. Networking is the Number One method used to get a job today, and you never know when a neighbor or family member knows someone who can provide you with the opportunity of a lifetime!

• Use all connections (family, friends, neighbors, school, past employers).
• Track business cards—write pertinent information on the back of the card and create a filing system. Review these cards periodically.
• Attend industry events, like computer shows, medical conferences, etc.  Many times there is a discounted student rate—a great way to meet people in your field of interest.
• Attend job fairs and use this opportunity to set up informational interviews with Human Resources representatives. (If you don’t know what informational interviewing is, do a keyword search on the Internet, or look for a future workshop on this topic.)
• Create connections through the Internet. CEOs or famous people who would not give you the time of day might be more willing to e-mail you as their schedule allows.

Tip #3: Research

I have always said that you will always spend either time or money. If you are willing to put in the time to go to local college libraries, to search the Internet, to call companies, to write letters, to meet with key figures, and to follow up with phone calls and thank you notes, then opportunities will open up to you that will provide experience and possibly financial assistance. However, if you are unwilling to invest time, then plan on spending $$$ for opportunities (such as experiential educational camps) and education. Here are some places you can go to research:

• Informational Interviews (It’s an old technique getting a new look from job seekers.)
• Job Shadow
• Massachusetts Career Information System Website (see Resources at end)
• School Resources (teachers, guidance, library, administrators, guest speakers)
• Public Library/University Libraries (university libraries have the best resources but you cannot check out materials)
• Internet (check site host to ensure the information is credible)
• One-Stop Career Centers

Tip #4: Toot Your Own Horn

But you have to be smart about it. It’s one thing to brag about yourself. It’s another to carry around documentation that brags FOR you. Put together a binder with several sections: working papers (include copy of driver’s license, green card, visa, or social security card), employment, education, community, and extracurricular. Put all documentation into clear page protectors and then into appropriate sections. Update the information periodically.

• Write a resume. Have it critiqued several times. Put copies of the end result in your portfolio. Be sure to update it every six months.
• Create business cards.  Always keep some on you.
• Track your awards, accomplishments, noteworthy projects, extra-curriculars, honors.
• Get recommendations (employers, teachers, mentors, etc.).
• Keep copies of syllabi for unusual or advanced classes; document successful projects or class work as it relates to the industry you are targeting.
• Include your transcript only if it would enhance your value.
• Keep copies of thank you notes, newspaper articles, publications, etc.

Tip #5: Create Your Own Career Education Plan

A car is a useful tool but only if you know where you are going. A little planning can go a long way and is one of the habits of highly effective people. Remember that a plan is not set in stone; you need to be flexible enough to adapt when unexpected opportunities present themselves. Also, you need to update your plan annually to reflect a change in experience or focus. Either way, you need something to work with, so map out your time. Don’t leave opportunities to chance—they will only appear if you are looking. Here is an example of a Career Education Plan:

Remember, career education doesn’t stop at high school. Create a plan for college as well—college will create a greater variety of opportunities. Try to get into unpaid internships early on; it will be harder to maintain expenses as time goes on.

Resources to Get You Started

The following is a starter list of steps and resources. It would be easy to overwhelm you with web links, so I selected the best to start you off. There are many more where these came from! Start with the first one, and work your way down as you complete each step. Good luck!

Visit The Career Place website for information on future workshops: www.careerplacejobs.com/youth