______, ______and _______

_____ strongly influence our _________ habits. We don’t usually spend our money on _______________________ __________. Typically, the more _________ something is, the more we are _______ to spend on it.

Values  F___________  W__________  H___________  S___ R______  I___________  R___________  The _______ and ________ in your life that are very important to you. ** Financial Values Inventory

Values Love Safety Recreation/travel Fitness Being in style Status Wealth Influence Tolerance Respect Community involvement Loyalty Honor Happiness Fun Religion Work Responsibility Excitement Family Beauty Helping others Sympathy Commitment Good health Reliability Freedom Patriotism Independence Compassion Security Risk Honesty Faith Maturity Acceptance Acquiring skills Education Sense of humor Friendship Examples

Values  Where did your values come from?  What influenced your values in the past?  What influences your values today?

Values Potential Influences Your parents Music Other relatives Books Your childhood experiences Magazines Your childhood friends Travel experiences Your current friends Specific events Your teachers Community activity Other people Camp experiences Television Volunteer experiences Entertainment personalities Work experiences Sport personalities Sickness or injury Others:

NEEDS vs WANTS  NEEDS  ________…the basics of life  ________

NEEDS vs WANTS  WANTS  Simply _______ the ______ of _______

Scarcity “________ is an __________ principle stating that because of _________ ___________, an economic system cannot possibly __________ all the goods and services that people want; therefore, _________ ______ ___ ________about how the limited resources will be used.” -Consumer Economics & Education, Glencoe, 2003

Check Yourself  Complete Financial Values Inventory  Complete Money Attitude Worksheet  Complete First Column of Values and Goals Worksheet

Goal Setting

Cheshire Cat, Alice In Wonderland

What is a goal? A ___________ statement of something a person ________ or ________ to accomplish. ◦ Examples  ______________ from high school  Earn a __________ degree  Buy a car  Get a job  Lose 15 pounds

SMART Goals S __________ M __________ T ___________ R __________ A __________ “Pay for lodging, transportation, meals for a 5-day trip to Washington, D.C.” “$300 through fundraising, $50 from birthday money, save $25 a week.” “If I stick to my plan, I’ll have the money when I need it.” “I still have enough money to live on while I work toward this goal.” “I need to have all the money by 6 months from now.” Source: NEFE PowerPoint available online

Time-bound Goals  Short-Term Goals  _______________________  Mid-Term Goals  _______________________  Long-Term Goals  _______________________  THIS WILL VARY AM RESOURCES

Goal Setting Activity Trip for 2 to Australia in 5 years for $5,000. Save $1,000 a year for 5 years (This couple has already saved $1,000 for their Australian trip and receive a $300 check each year from their co-op). They may revise their goal to say … Need to save $4,000 minus $1,500 co-op distribution check, or $2,500. $2,500 divided by 60 months = $41.66 per month see notes view

Example of a Financial Goal Financial Goal Example a. Purchase: $2000 b. Target Date: 12/01/2014 c. Time Frame: 10 months d.Tracking: Month$ GoalSavedAchieved i. Feb200200yes ii. Mar200200yes iii. Apr no iv. May200100no v. Jun200200yes - Review and Revise vi. Jul290290yes vii. Aug290 viii. Sep290 ix. Oct 290 x. Nov 290

Financial Goal  Write about a time when you set and reached a financial goal  What are some personal experiences with financial goals? Were they successful? What were the consequences good and bad?

Activity Create a collage of your financial goals for the future. Use pictures from magazines, clipart from the computer, or your own artwork. The finished collages will be displayed in our classroom.

Financial Planning

DFGDF

How could planning ahead make these trips more pleasant? 1. Who else is in the car? 2. What is in the trunk? 3. How far down the road will you travel? 4. Why did you choose this road? 5. What was the last thing you did before getting in the car? 6. What will you do first when you get there? 7. If you went down this same road again, what would you do different?

8. What unforeseen obstacles might be ahead? 9. Was this driver prepared? 10. How much different would his experience be with a full tank of gas? 11. Running low on gas? 12. What if a passenger was injured? 13. How does that differ than if he was 2 blocks from home?

Financial Planning More than __________ More than ____________ Financial planning is a ________ process that helps __________ goals. A ____________ or plan for _________ all components of a person’s money. ____________ to spend, save, and invest money to ______ comfortably, have financial ________, and achieve _______.

Components of a Financial Plan ___________ ___________________ ___________ __________ Plan

Benefits of Having a Financial Plan You have _______ money and financial ___________. You know ________ to use money to __________ your goals. You have ______ chance of going into ______ you ________ handle.

How do I make a Financial Plan? 1. Determine your current financial situation. Make a list of items that relate to your finances: Savings/Investments Monthly Income (Job Earnings, Allowance, Gifts, Interest) Monthly Expenses Debts

Savings/InvestmentsMonthly Income Monthly Expenses Debts

Develop your financial goals. 2. Develop your financial goals. Consider your attitude toward money. Ask yourself the following: How do I determine if it is more important to spend money now, or save it for the future? How do your personal values affect your financial decisions? How do I make a Financial Plan?

Gotta Have it Now OR I Can Wait If, right now, I gave each of you your favorite candy bar and told you you can go ahead and eat it now or if you wait and eat it then at the end of class you can have a second one; how many would eat it now and how many would wait?

Gotta Have it Now OR I Can Wait Standford Marshmallow Study

3. Identify your options. _________ the same course of action. _________ the current situation. _________ something new. How do I make a Financial Plan?

Evaluate your alternatives. 4. Evaluate your alternatives. Consider the ______ and _______ of each decision you make. Be aware of all sources of financial information. Evaluate consequences of choices, both good and bad. Understand risks involved with choices. How do I make a Financial Plan?

RISKSCONSEQUENCES

Create and use your financial plan of action. 5. Create and use your financial plan of action. How do I make a Financial Plan?

5. _______ and _______ your plan. As we get older and our circumstances, our finances, needs, and wants will change, therefore, _________________ ___________ as well. How do I make a Financial Plan?

Writing Prompt Write a paragraph identifying one of your long, mid, or short-term goals. Explain how it reflects your needs, wants, values, and priorities. Write an action plan to achieve the goal, including tasks, timelines, resources needed, and barriers anticipated. Follow the instructions provided in the handout. Financial Outlook Paper