Personal Finance 1st Edition by Jack R. Kapoor

Exercise 20

1. How does a person’s life situation determine the importance of certain employee benefits?

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2. What methods can be used to measure the monetary value of employee benefits?

Action Application Talk to people employed in various types of organizations. Prepare a list of the most common types of employee benefits received by workers.

Step 1 of 2

1) Importance of person’s life situation on employee benefits:

A person’s life situation determine the importance of certain employee benefits like need for child care benefits are important for single-parent or two-income households and elder care benefits are important for employees with dependent parents.

Life-situation is the different situation in life that a person goes through. The different life situations are unmarried, married without children, married and have young and dependent children, married and have independent children, old age with well-settled children.

The needs and requirements of the person keep varying from one life stage to another. The responsibilities of the persons are different at different stages. So, the employee needs different employee benefits. For example, when the employee has dependent children then he will need more employee benefits. Similarly in old age, after the person has retired from job, he will need more employee benefits.