G1 Values, Needs, Wants, and Goal Setting Essentials- Advanced Level Economics and Financial Education

© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Values, Needs, Wants, and Goal Setting Essentials– Slide 2 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona G1 What is a Value? What are examples of values? Family Good health Financial security A successful and/or satisfying career Honesty Helping others Religious commitment Education A value is a fundamental belief or practice about what is desirable, worthwhile, and important to an individual

© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Values, Needs, Wants, and Goal Setting Essentials– Slide 3 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona G1 Values What influences a person’s values? Religious affiliations Family Teachers Friends Law Media Work/ Career Life Experiences Are your values the same as the person sitting next to you?

© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Values, Needs, Wants, and Goal Setting Essentials– Slide 4 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona G1 Values Values guide a person’s needs, wants, and goals Decisions affect an individual’s financial situation Values, needs, wants, and goals influence a person’s daily decisions Values, needs, wants, and goals influence a person’s daily decisions

© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Values, Needs, Wants, and Goal Setting Essentials– Slide 5 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona G1 Imagine What would the world be like if everyone had the same values? Questions 1 and 2

© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Values, Needs, Wants, and Goal Setting Essentials– Slide 6 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona G1 Needs vs. Wants A need is something thought to be a necessity or essential items required for life Examples of needs: Food Water Shelter Examples of wants: Car stereo MP3 player Designer clothes A want is something unnecessary but desired or items which increase the quality of living

© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Values, Needs, Wants, and Goal Setting Essentials– Slide 7 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona G1 Need or Want? You Decide! Clothing Going to the movies Going out to eat A place to live A car/truck A computer Owning an MP3 player Cell phone Owning a vacation home Food Everyone has different interpretations of needs and wants. This is based on… their personal values! Questions 3 and 4

© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Values, Needs, Wants, and Goal Setting Essentials– Slide 8 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona G1 What is a Goal? A goal is defined as the end result of something a person intends to acquire, achieve, do, reach, or accomplish sometime in the near or distant future Identifying goals makes decision making easier

© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Values, Needs, Wants, and Goal Setting Essentials– Slide 9 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona G1 How do values, needs, wants, and goals relate to financial decisions? Values WantsGoalsNeeds Decisions Financial Decisions

© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Values, Needs, Wants, and Goal Setting Essentials– Slide 10 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona G1 Types of Goals Goals Financial goals are specific objectives to be accomplished through financial planning Education goals enable individuals to prepare for future success in the workplace Short-term goals are specified as less than one year Long-term goals are specified as more than one year Questions 5-7

© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Values, Needs, Wants, and Goal Setting Essentials– Slide 11 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona G1 SMART Goals Financial and education goals should be SMART goals SMART Goals Specific State exactly what is to be done Measurable Include how the goal can be measured Attainable Determine steps to reach the goal Realistic Do not set goals for something unrealistic Time Bound State when the goal will be met

© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Values, Needs, Wants, and Goal Setting Essentials– Slide 12 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona G1 SMART Education Goal Goal – “I want to attend college.” SMART goal – – Specific – I want to attend a four year college – Measurable – Because I want to attend a four year college, I will earn a B in algebra – Attainable – Because I want to attend a four year college, I will earn a B in algebra this semester – Realistic – Because I want to attend a four year college, I will earn a B in algebra this semester to prepare me for the college entrance exam – Time Bound – Because I want to attend a four year college, I will earn a B in algebra this semester to prepare me for the college entrance exam when I am a junior in high school

© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Values, Needs, Wants, and Goal Setting Essentials– Slide 13 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona G1 SMART Financial Goal Goal – I want to buy a new car SMART goal – – Specific – I plan to save for a down payment on a new car – Measurable – I plan to save $5,000 for a down payment on a new car – Attainable – I plan to save $5,000 for a down payment on a new car by saving $200 from every paycheck – Realistic – It is realistic to save $200 from each paycheck for a down payment on a car because I usually waste the money on unnecessary items instead of saving it – Time Bound – I plan to save $5,000 for a down payment on a new car by saving $200 from each paycheck for two years.

© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Values, Needs, Wants, and Goal Setting Essentials– Slide 14 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona G1 What is Missing? Find the missing SMART goal element (specific, measurable, attainable, realistic, or time bound) for each of the following financial goals Financial Goal #1 – I plan to save $5,000 for college living expenses in four years.

© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Values, Needs, Wants, and Goal Setting Essentials– Slide 15 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona G1 What is Missing? Find the missing SMART goal element (specific, measurable, attainable, realistic, or time bound) for each of the following financial goals Financial Goal #1 – I plan to save $5,000 for college living expenses in four years. Attainable

© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Values, Needs, Wants, and Goal Setting Essentials– Slide 16 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona G1 What is Missing? Financial Goal #2 – I plan to save for a new computer by saving $150 each month for one year.

© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Values, Needs, Wants, and Goal Setting Essentials– Slide 17 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona G1 What is Missing? Financial Goal #2 – I plan to save for a new computer by saving $150 each month for one year. Measurable

© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Values, Needs, Wants, and Goal Setting Essentials– Slide 18 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona G1 What is Missing? Financial Goal #3 – I plan to save $2,500 by saving $105 each month for 2 years.

© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Values, Needs, Wants, and Goal Setting Essentials– Slide 19 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona G1 What is Missing? Financial Goal #3 – I plan to save $2,500 by saving $105 each month for 2 years. Specific

© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Values, Needs, Wants, and Goal Setting Essentials– Slide 20 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona G1 What is Missing? Financial Goal #4 – I plan to save $1,500 to buy a used car by saving $75 from each paycheck.

© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Values, Needs, Wants, and Goal Setting Essentials– Slide 21 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona G1 What is Missing? Financial Goal #4 – I plan to save $1,500 to buy a used car by saving $75 from each paycheck. Time Bound

© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Values, Needs, Wants, and Goal Setting Essentials– Slide 22 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona G1 What is Missing? Financial Goal #5 – I plan to save $2,000 to pay for a new computer by saving my whole paycheck for the next 6 months.

© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Values, Needs, Wants, and Goal Setting Essentials– Slide 23 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona G1 What is Missing? Financial Goal #5 – I plan to save $2,000 to pay for a new computer by saving my whole paycheck for the next 6 months. Realistic

G1 Opportunity Cost The value of your next best alternative whenever you make a choice. Your opportunity cost may not be the same as someone else since we have different values. When making a decision, consider the things you have to give up or not have. Ask yourself if the reward gained from choosing one alternative is worth the cost of giving up another alternative. Examples: If you download music to your iPod, you may not be able to buy the movie ticket you wanted. If you get a job right now, you may not be able to be a full time student.