1. Financial Decisions Math and Personal Finance

2. Financial Decisions Values Needs Wants

3. Values Value: A fundamental belief or practice about what is desirable, worthwhile, and important to an individual. Values are the standards, morals, ethic, and beliefs by which you live your life and form the basis for all decision- making. For example, most people value things like family, friends, good health, having a successful and/or satisfying career, financial security, honesty and helping others.

4. What do you Value? Think about what makes you feel happy, comfortable, satisfied or good about yourself? – List two things that you value on your notes What influences your values? (Choose two and add them to your notes) – Family -Culture – Friends -Religion – Teachers-Media

5. Values play a large role in all decisions you make, including your financial decisions. Values help you to determine your personal goals. Achieving these goals may involve the use of money. So, the first step in deciding how to manage your money is to determine what you want your life to look like, both in the present and over the long term.

6. Need A Need: goods or services that are required for survival. – Think about three items you have used or consumed today. Are they needs?

7. Wants Wants: Things that reflect our vast desire for goods and services that can increase our quality of life but are not absolutely necessary for our survival. Needs Wants FoodChocolate Ice Cream ClothingDesigner Jeans HouseBeachfront property

8. Trade-offs and Opportunity Costs Trade-Off: Choosing one thing and giving up another. – Ex) Living in a super cheep/dumpy apartment so that you can afford the car payment on your new BMW Opportunity Cost: The value of the next best alternative that must be forgone as a result of the decision. – Deciding if having a nice car is really worth the pain of living in a dumpy apartment. (What’s really important to you)

9. It’s all about knowing the difference between needs and wants Celebrities that made millions and are now broke More of them