How Does Education Affect Your Income - Financial Literacy - أول ثانوي

Link to digital lesson 回回 www.len.eda.ca 1.2 How Does Education Affect Your Income? وزارة التعليم Learning Objective Once you have completed this lesson, you should be able to: ⚫ identify different types of education and training ⚫ explain the relationship between education and earnings. Key Terms Formal education Informal education Self-training Résumé On-the-job training Salary scale Off-the-job training Income is affected by several factors. The most important factor is your education and the training you receive while working. Education There are many different types of education. Citizens in Saudi Arabia have compulsory education until high school. Students can choose whether to attend a vocational school or a high school with pathways specializing in: ⚫the General Pathway ⚫the Sharia Pathway ⚫the Business Administration Pathway ⚫ the Computer Science and Engineering Pathway ⚫ the Health and Life Pathway. Some jobs require little further education, while other jobs require degrees which can take several years to complete. 16 Financial Literacy

Education can be formal or informal. In formal education, students must show that they have learned certain skills and concepts and have been able to pass tests. Informal education usually does not happen in classrooms; it often happens when working or through life experiences. Formal education involves attending classes and, often earning a degree Informal education unplanned and unstructured learning which is not part of a cumiculum Education in the Workplace Informal education can happen in the workplace through on-the-job training. This is when you learn skills by having a mentor. They show you the exact skills you need to do your job successfully and check to see if your work meets requirements. However: ⚫ you do not get any certificates to show you have reached a certain level ⚫ it can be difficult to prove your ability if you decide to look for a job in another organization. Workplace education can also happen through off-the-job training. This is when your employer pays for you to be trained in a skill which is needed for the business. It usually involves: ⚫ formal education with a certified training organization ⚫ certification which you receive on successful completion of the course. This then means that you have proof of achieving a certain level in a subject which you can use for new jobs or promotions. Another way of learning new skills is by self-training. This is when you learn to use a piece of technology, such as a computer program, by: reading instruction manuals or reference books ⚫ using written or video tutorials to teach yourself a valuable skill. These skills can be listed on a résumé when you are able to perform them at an acceptable level. On the job training training that a person receives while they are working and getting paid Off-the-job training to have training away from the workplace Salf-training learning new skills from reading and practicing on your own Racune a summary of your education. skills, and experience to be used when applying for jobs وزارة التعليم 20175-1445 CHAPTER Income 17

What are the benefits of on the training for the employer and the employee 18 El ALL

The Relationship Between Education and Earnings The amount and type of education you complete can affect the amount of money you earn. Usually, people who have a formal education earn more than people who have less or informal education. If the pay for a job is high compared to the education required, there is often a reason. The job might require a high level of experience which comes from practice and cannot be taught at university. Gaining Promotion through the Salary Scale When you work for an organization, there is often a salary scale which shows how much you will earn for each level of job. Organizations have salary scales so that potential and current workers know how much they are likely to be paid. For example, in the Saudi Civil Service, each job has its own salary scale, as shown in Figure 1.2.1. Salary scale the different levels and the range of pay for a particular job, based on level of skill or experience Grade 2 3 5 6 7 2 3 5 6 7 8 6,370 6,675 6,980 7.010 7,375 7,740 8,105 8.010 4 13 3,000 3,135 3,270 3,405 3,540 3,675 3,810 3,945 4,080 4,215 4.350 4,485 4,520 3,430 3,595 3,760 3,925 4,090 4.255 4,420 4,585 4.750 4.915 5,01803 5,245 5,410 3.945 4,135 4,325 4.575 4,705 4,895 5,085 5,275 5,465 5,855 5,845 6,035 6,225 6,415 6,605 4 4530 4,760 4,990 5,220 5,450 5.680 5,910 6.370 6,500 5.240 5,505 5,770 6,035 6,300 6.565 6,830 7,625 7.890 8155 8,420 5,685 8,950 6.065 7,285 7.590 7,895 STEPS 8 9 WO 11 12 6,140 Annual Bonus 4.755 4,890 135 5.575 5.740 165 190 6.830 7,060 7,290 7520 7,750 230 14 15 7,095 7.360 265 8,200 8.505 8,810 9.115 9,420 9,725 10,030 10.335 305 8,425 8,840 9,255 9 9.275 9,745 10 10,215 10,685 10,275 10.785 11 295 11,805 12,315 12,825 13.335 13,845 14,355 14.865 15,375 15,885 16,395 16,905 17.415 10,085 10.500 10,915 11,330 11,745 12.160 12,575 12,990 13,405 13.820 11 155 11,625 12:095 12,565 15,035 13.50$ 13,975 14,145 14,915 15,385 15.855 8,470 8.835 9,200 9.565 9.930 10.295 10,660 11,025 11,390 11,755 12.120 9,670 365 415 470 510 11 11,815 12.345 12,875 15,405 13,935 14 465 14.995 15,525 16,055 16.585 17,115 17,645 18,175 18,705 530 12 13,435 14,00 14,575 15,145 15,715 16,285 16,855 17.425 17,995 18,565 19,135 19,705 20,275 570 13 15,180 15,785 16,390 16,995 17,600 18,205 18,810 19,415 20,020 20,625 21,230 21,835 605 14 12,015 17,713 18,415 19.115 19,815 20,515 21,215 21.915 22,615 23,315 24,015 700 15 20,855 21,720 22,585 23,450 24,315 25,180 26,045 26,910 27,775 28,640 865 Go online and and examp salary FIGURE 1.2.1 stale na jub which interests you in the private sector. وزارة التعليم (173-1445 Example Salary Scale in Saudi Arabia for Civil Servants (Government Data) CHAPTER Income 19

وزارة التعليم 20 Financial Literacy The salary scale for each job and organization is usually based on a number of factors: ⚫ the level of difficulty of the job role: The more difficult the job role, the higher the salary scale will be. A technician who checks and maintains computers using basic skills will have a lower salary scale than a computer programmer who makes sure that all the systems work together. ⚫ the amount of experience or training required: Roles which require additional off-the-job training, like specialist doctors, will have higher salaries than general doctors who are not specialists. There is often a range of pay within a particular grade. This is to make sure there is an incentive for employees to work hard even if they do not get promotions. Employees rise through the steps due to factors such as: ⚫ their length of service within the organization: When an employee stays in the same job role, they can get an annual increase within the range of pay up to a certain level. ⚫ their level of education: If a person has many certificates which are relevant to the job role, they are more likely to be nearer the top of the range of pay. It is important to note that organizations in the private sector, particu- larly larger ones, often have their own salary scales and may pay more than the civil service. Planning Your Education Journey Think about the type of education you want to complete and how well it will prepare you for the career or job you want later in life. Education will affect your current and future job choices. Making choices about education is a serious responsibility. Education is considered an investment in your future. The jobs you choose and the education you receive will affect the amount of money you can earn. How much time and effort are you willing to spend to pre-

pare for the job you want? How will you make yourself more employable than everybody else who is applying for the role? It's never too early to start planning for your future. However, learn- ing will not stop after you get your first job. People keep learning all the way through their lives. Lifelong learning is important, not just to help us in our careers but also to help us grow as people as we meet new challenges. LOOKING BREND Using Figure 1.2.2 as a guide, what career may interest you in the future? To prepare for this career, conduct online research into: 1. What qualifications and/or experience will you need to get an entry-level position (the first job after education)? 2. What is the likely starting salary for the entry-level position? Job Monthly Salary in SAR University Lecturers and Professors 8,765-28,710 University Teaching Assistants Doctors Pharmacists Health Assistants Judges Court Attorneys 6,650-12,460 9.200-39,040 7,420-29,180 3,935-14,835 11,230-25,655 Chief Justices Diplomatic Advisers Investigators (Bureau of Investigation and Prosecution) وزارة التعليم 2071-1445 17,490-28,340 24,510-37,530 12,830-22,270 11,230-25,655 FIGURE 1.2.2 Salary Ranges for Different Jobs in Saudi Arabia (Government Data CHAPTER Income 21

وزارة التعليم 22-Financial Literacy Reasons for Differences in Salary Ranges Hospitals require many different types of employees, from administra tive workers to medically qualified employees. The pay scales for these different types of employees depend on a number of different factors, some of the main ones being: ⚫ the amount of training the employee has completed ⚫ the amount of experience the employee has ⚫ the amount of responsibility the employee has ⚫ the employee's seniority ⚫ the employee's specialism ⚫ the difficulty of the work. For example, a doctor's monthly salary scale is over twice as much as that of a health assistant. This reflects the fact that a doctor has completed a longer course of training and has more experience and responsibility. The medical education university program for Saudi doctors usually lasts for 6 years, with an additional year's internship. After completing their internship, doctors embark upon a residency of 3-6 years, followed by a fellowship of 1-3 years. The extensive training that doctors receive ena- bles them to make decisions on what medicines to prescribe and what medical procedures to employ in a given situation. Health assistant programs are much shorter and do not require partic- ipants to earn a degree. Health assistants often follow instructions from doctors and will have much less responsibility. However, their training is still quite extensive, as health assistants will gain certification in areas such as care work, life support, first aid, and infection prevention and control.

Review Questions Choose the correct answer. 1. Which of the following is an example of on-the-job training? a. going to school b. using video tutorials c. following your supervisor's instructions d. reading the instructions 2. You can only earn a high salary if you have a high level of education. a. true b. false 3. A resumé is a document which shows the skills and experience needed when advertising a job role. a. true b. false 4. Which of the following describes what the range of pay within a salary scale may depend on? a. how friendly you are with the owner b. whether you asked nicely for more pay c. how many friends already work in the organization d. the number of relevant certificates you have 5. Which of the following is NOT a feature of informal education? a. It usually happens in classrooms. b. It usually happens in real-life situations. c. It can involve learning while at work d. It is an unplanned and unstructured type of learning. 6. You can often increase your salary simply by staying at the same company for a long time. a. true b. false وزارة التعليم 2027-1445 CHAPTER J Income 23