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Quiz: Career Planning and Income

Test your understanding of career planning and income concepts.

1. When exploring career options, what should you look for at the intersection of?

  1. Only what you enjoy
  2. What you enjoy, what you're good at, what pays well, and what's in demand
  3. Only what pays the most money
  4. Whatever your parents recommend
Show Answer

The correct answer is B. The best career choices balance what you enjoy (engagement and meaning), what you're good at (skills and talents), what pays well (adequate compensation for your goals), and what's in demand (job security and growth). Focusing only on passion ignores financial reality, while focusing only on money leads to burnout. Finding work at this intersection provides both fulfillment and financial security.

Concept Tested: Career Exploration

See: Finding Your Career Path

2. Why does income potential vary significantly for the same job in different locations?

  1. It doesn't vary—all locations pay the same
  2. Cost of living, local demand, and market conditions differ between locations
  3. Only union jobs have location-based pay differences
  4. Remote work has eliminated all location-based pay differences
Show Answer

The correct answer is B. Income for the same job varies dramatically by location due to cost of living differences, local demand for skills, and regional market conditions. A software engineer might earn $150,000+ in San Francisco but $80,000 in a smaller city—but San Francisco's cost of living is also much higher. When comparing salaries, always consider cost of living and remote work opportunities that may allow you to earn high-market salaries while living in lower-cost areas.

Concept Tested: Income Potential Research

See: Location-Based Income Differences

3. What are employee benefits worth as a percentage of salary?

  1. 0-5%
  2. 10-15%
  3. 20-40%
  4. 50-60%
Show Answer

The correct answer is C. Employee benefits typically add 20-40% to the value of your compensation. Health insurance alone can be worth $5,000-$15,000 annually. Add retirement matching, paid time off, and other benefits, and the total value is substantial. When comparing job offers, always evaluate the complete compensation package—a $70,000 salary with excellent benefits can be worth more than $75,000 with poor benefits.

Concept Tested: Employee Benefits

See: Benefits Value

4. You're comparing two job offers: Job A offers $70,000 with 6% 401(k) match and full health insurance. Job B offers $75,000 with no match and you pay $4,000/year for health insurance. Which has higher total compensation?

  1. Job B because the salary is higher
  2. Job A because total compensation is higher after accounting for benefits
  3. They're exactly equal
  4. Can't determine without more information
Show Answer

The correct answer is B. Job A true value: $70,000 salary + $4,200 match (6% × $70k) + ~$8,000 health insurance value = ~$82,200. Job B true value: $75,000 - $4,000 health insurance cost = $71,000. Job A provides $11,200 more in total compensation despite the lower salary! This demonstrates why evaluating complete packages, not just base salary, is critical when comparing offers.

Concept Tested: Total Compensation Package

See: Evaluating Total Compensation

5. What is a side hustle?

  1. Your primary job
  2. An additional income source outside your main employment
  3. A retirement account
  4. A type of investment
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The correct answer is B. A side hustle is income earned outside your primary job—freelancing, gig work, tutoring, selling products, renting assets, etc. Side hustles provide financial security through diversified income streams, help accelerate financial goals, and allow you to test business ideas or develop new skills. Popular examples include freelance writing/coding, rideshare driving, tutoring, Etsy shops, and renting spare rooms on Airbnb.

Concept Tested: Side Hustles

See: Diversifying Income

6. When should you negotiate a salary offer?

  1. Never—you should just accept what's offered
  2. Always negotiate new job offers
  3. Only if you have another offer
  4. Only if you're senior level
Show Answer

The correct answer is B. You should always negotiate new job offers—companies expect it and initial offers typically have room for negotiation. Most people never negotiate and leave thousands of dollars on the table. Average successful negotiation yields $5,000-$10,000 increase, which compounds over your career (raises are percentages of current salary). Even small increases now mean huge differences over decades. Negotiating professionally shows confidence and business sense.

Concept Tested: Salary Negotiation

See: When and How to Negotiate

7. What's the best approach to starting a salary negotiation?

  1. Demand the highest possible salary immediately
  2. Express enthusiasm, state your desired range with justification based on research and your value
  3. Threaten to decline the offer
  4. Ask for double what they offered
Show Answer

The correct answer is B. Effective salary negotiation starts with expressing genuine enthusiasm about the role, then stating your desired salary range with specific justification: "Based on my research of market rates and my [experience/skills], I was expecting $X-$Y range." Use data (salary research, comparable positions), not emotions. Be specific but flexible. Let them respond—silence is powerful. If they can't move on salary, negotiate other items like signing bonus, remote work, or PTO.

Concept Tested: Salary Negotiation

See: Negotiation Strategies

8. Starting at $60,000 vs $65,000 with 5% annual raises, what's the approximate career difference over 40 years?

  1. $5,000 total
  2. $200,000 total
  3. $400,000 total
  4. No difference over time
Show Answer

The correct answer is C. That $5,000 difference compounds dramatically over a career because raises are percentages of current salary. Starting at $60k leads to about $4.8 million total earnings over 40 years with 5% annual raises. Starting at $65k leads to about $5.2 million—approximately $400,000 more lifetime! This demonstrates why negotiating your starting salary and early career moves are so financially important. Small differences now create enormous differences over decades.

Concept Tested: Salary Negotiation and Income Potential

See: Why Negotiation Matters

9. What is professional development?

  1. Creating a LinkedIn profile
  2. Ongoing learning and skill-building to increase your value in the job market
  3. Getting your first job
  4. Retiring early
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The correct answer is B. Professional development is continuous learning and skill-building to stay relevant, increase your value, and advance your career. This includes formal education (degrees, certifications), on-the-job learning (new projects, mentorship), self-directed learning (reading, courses), and networking. Industries and technology change rapidly—yesterday's skills become obsolete. Employers value continuous learners, and developing in-demand skills protects against job loss and commands higher pay.

Concept Tested: Professional Development

See: Investing in Your Career

10. If your employer offers $5,000 in tuition reimbursement annually, what should you do?

  1. Ignore it since you already have a degree
  2. Take advantage of it to pursue additional education or certifications
  3. Only use it if you're planning to leave the company
  4. Give it to a coworker
Show Answer

The correct answer is B. Employer-sponsored professional development (tuition reimbursement, training budgets, conferences) is free career advancement—always take advantage of it! Use it to pursue advanced degrees, professional certifications, skill development, or industry training. This increases your value, earning potential, and job security at no cost to you. Many employers offer $5,000-$10,000 annually in tuition reimbursement—not using it means leaving money on the table for your career growth.

Concept Tested: Professional Development

See: Employer-Supported Development